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Auntie Kate The Resale Expert

Kate Holmes of TGtbT.com talks with consignment, resale & thrift shopkeepers about opening, running, & making their shop THRIVE!

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That 20% of customers you lose every year: Get them back

March 8, 2012 by Auntie Kate of Too Good to be Threw

Lose 20% of our customers without finding out WHY? That's nuts!Many years ago, I was on the board of directors for NARTS with Annette, who owned a large childrenswear consignment shop in the Orlando area. When I visited her large, bustling shop, I noticed several .

carefully laminated signs around her shop. I forget the wording, but I remember the idea, and this is how I would word it nowadays: “Suggestions? Problems? Praise or pans? Let Annette, owner of MyShop, know: [here, her contact info, probably a dedicated email address would be best]”

Annette came to mind because I was over on Snapretail and read an article:

The Prodigal Customer—The Lost 20%

The average number of customers that stop doing business with you is about 20 percent annually. A survey on “Why customers quit” found that of the 20 percent that stop doing business with you, 3 percent move away, 5 percent develop other friendships, 9 percent leave for competitive reasons, 14 percent are dissatisfied with the product or service, and 68 percent quit because of an attitude of indifference toward the customer by the owner, manager or some employee.

This means that 82 percent of your customers that stop doing business with you are unhappy. Unfortunately, unhappy customers don’t usually complain about their feelings. A study from the Research Institute of America says that the average business will hear nothing from 96 percent of unhappy clients who experience rude or discourteous treatment.

Not only is having unhappy customers not doing business with you driving up the cost of customer acquisition but it is costing you potential lost sales. The same study found that unhappy customers will tell their experience to at least nine other people, thus, jeopardizing further potential sales.

So, what do you do to get all these people buying from your business again? You assume the statistics are right and that you did something to offend them in one of your business transactions. What do you to make your spouse start talking to you again after you have offended them? That’s right, you humble yourself and apologize and ask for forgiveness.       Read the full article.

Wouldn’t you rather know? Why don’t all shopkeepers throughout the world do this? Is it because they are afraid that even suggesting that a customer might have reason to contact the boss would lead to unjustified complaints and boundless bitching? Or because they hate dealing with problem staffers and if they don’t know that staffer’s a problem, all is rosy? Or is it because these shopkeepers truly believe that whatever problems customers have with their business… is the customer’s problem?

Why don’t YOU have a variety of Annette’s signage posted prominently in your shop? Or do you? And if so, share how it works for you, by commenting below.

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Posted in Shopkeeping talk | Tagged customers, small business | 1 Comment

One Response

  1. on March 8, 2012 at 12:50 pm Tiffany Ervin's avatar Tiffany Ervin

    I LOVE, LOVE, LOVE this idea & will print my signs today! Four years ago when I bought the store, I framed some nice photos from different trips I’ve taken over the years & hung them around the store. I’ve been thinking lately that it’s time to replace them, & I was planning to make some new signs to promote our Facebook page, Twitter account, frequent customer card, etc. Now I have another fresh idea to include. Thanks!
    PS – As a Rotarian, I also have the 4-Way Test posted in my store to promote ethics…I often get comments on it, so why didn’t I think of this idea before now?



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