10. Why do you lose business?

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What is the easiest way for a competitor to take a customer away from you? Why do you lose accounts to your competitors?

Here are some reasons that sound good: Our service isn't up to par.  Our prices are too high.  We have too many out-of-stocks.  My competitor is better known in my market.

I have a surprise for you.  When you lose an account it is mostly due to one reason. I would say that 95% of all the accounts you lose to a competitor are for this single reason!  This single reason will enable you to take away more business from your competitor than you can handle.

It's easier than you think.   Here's why.  Your competitors are taking their customers for granted. I guarantee it! Let me say that again in capital letters...

YOUR COMPETITORS ARE TAKING THEIR CUSTOMERS FOR GRANTED.

And do you know what else?  So are you - I know, I know - you don't want to hear that. It's true - you know it and I know it.

Lets put it to the test.  Do you feel appreciated? Probably not.  Would you like a little appreciation?   If your answer is yes - you are not alone.  In a recent survey 6,600 people were asked two questions:

1. Do you receive as much praise, recognition and appreciation as you feel you deserve?

6,415 SAID NO

2. Would you perform your job better if you were given more praise, recognition and appreciation?

6,495 SAID YES

This, of course, doesn't apply to you - you are in sales - it is up to you to GIVE appreciation not GET it.  The point is - most people feel unappreciated.

Here's more proof - a real life example:  I was helping a small foodservice distributor look for a way to promote their business.  We thought about a food show, however, due to the small size of the company we felt that it would be too big of an undertaking. After a lot of talking we finally came up with a program we called a "customer appreciation dinner."

We contacted 20 of his suppliers and asked them to participate by serving dinner to the customers and at the same giving them the opportunity to show samples of their products.  All the suppliers agreed and we put together a buffet line concept with the theme being that we want to show our customers that we appreciate their business.

We decided to use an RSVP format so we would know how many people would show up, and we could tell the suppliers how many people they could plan on feeding.  We arranged to have the dinner at a Holiday Inn with a room large enough to hold 108 people at one time.

We sent out 525 invitations expecting to get about 200 RSVP's.  The invitation said, "When was the last time someone took you to dinner to show you how much they appreciate your business?"

Not knowing the power of our theme, "Customer Appreciation Dinner", we had 525 RSVP's!  We had to turn the tables FIVE TIMES during the evening.  Every restaurant in the small southern town was closed with a sign on the door saying "Closed - we went out for dinner."

The normal procedure is to get an account, wine and dine them during the honeymoon period, and then put them on auto pilot.   You are guilty of it, aren't you? Admit it.

How can you take away business from a competitor?  Here's the secret.  Get a small order from your competitor’s customer and then show that you REALLY appreciate their business.  Too simple? - You WILL stand out and be noticed.

Sure, you gave the customer a discount - THEY should appreciate YOU!  Your customer is the one who writes out those big checks every week - they are not thinking about how much they appreciate the small discount they got - they are wondering if YOU appreciate the amount of business THEY are giving YOU.

Your customers pay your mortgage, put your kids through school, make your car payments, pay for your retirement plan.  Your top twenty customers - Do you thank them enough?  Do you show them that you appreciate their business?  More than likely the answer is no.

Give your customers the attention and appreciation they are hungry for.  Give your prospects the attention and appreciation they are not getting from their current supplier and you will take away the business.

Few things are more gratifying than gratitude, and very few sales people express their gratitude as much as they should.

Appreciation can go a lot farther than just saying thank you.  How many thank you notes did you send last year?  Your competitors are not doing it. It's the little messages of gratitude that will make a big difference.

I was sitting in a buyer’s office when a fax came in for him.  He seemed a little upset so I asked him if there was anything wrong.  He said a salesman had just left with a  large order and he just faxed a thank you note.

I thought that was pretty good for a sales person to take the time to send a thank you fax.  However, the buyer said he was going to cancel the order, but because of the thank you note it became too difficult to call and cancel.

You never know what insurance your thank you notes, follow up phone calls and extra attention is providing.  Here is more proof.

Headquarters wanted to know why a small pizza shop was performing way beyond everyone's expectations.  They were number one in a large national chain – yet located in a small town with a lot of competition.   When they investigated they found that before closing they would go through their deliveries and call everyone to make sure their pizza was good!

CAN YOU IMAGINE THAT?  A thank you call from a PIZZA SHOP?

I just bought a new house.  After the closing I never heard a peep from the broker - nothing - zero!  I even had to call his office and tell them to come and get their sign out of my yard!

No - Service is not the reason you lose business.

No - Price is not the reason you lose business.

No - Your competitor's image in the market is not the reason.

No - it's none of those things.

The reason you lose, on average TWENTY-FIVE PERCENT OF YOUR BUSINESS EVERY YEAR is because you didn't listen to your mother when she told you to say "Thank You."

Comments:

I always make an effort to show my small customers the same gratitude and appreciation as I do my larger accounts. I was in the Restaurant business working for a large corporation where I purchased over $300,000 yearly.  Later I went to my own small business of $80,000.  I noticed how differently I was treated by some of the people at my supplier and always remember how offended that made me feel.

Marion Blomeke

I think that we become complacent far too easy. We feel like we are owed the business after we put in a little time. We forget that it is an ongoing experience and that we have to continue to nurture our clients to help them grow their business as well as ours.

Tammy McReynolds

I recently lost a large account, partly because of low-balling by a competitor, but partly because I probably did not give them the attention they deserved. It was not intentional, it just happened. My other customers are benefiting by my mistake because of my increased attention and appreciation of their business. I will never lose another account because of my taking them for granted.

Larry Edmondson

I have recently picked up two accounts that had heard of our company from other customers of ours. I was told by both owners that they wanted to go with our company because of the continued support and appreciation the other salesmen have shown the other customers in the community. It has proven to me that a little extra time and effort, shown to not only a customers business but the client themselves, goes along way. Ill start today by saying thank you to John and Tommy, you have been a big help in the starting of my career.

Jason Kirouac

One of my most enjoyable sales was continually calling on a customer who never gave me any business. He was satisfied with my competitor until he slacked off on his calls to this customer. I will never forget watching this customer sign my order pad and thinking about my competitor driving around not even knowing he had lost a big sale. I think he found out two weeks later.

Crocker Smith

In the past year I was able to gain business from the competitor just by showing up! They had gone months without seeing their sales rep, and it was an easy sale for me. However, I am working harder to make sure my customers know how much I appreciate them so I am not put in the situation that the competitor takes the business from me. I see my accounts on the same day and same time every week. If for some reason I am running late of off, I always make sure I notify the customer.

Candy Swift

I called a prospective client the other day asking if I could simply stop by and introduce myself. He mentioned to me that he has been doing business with one particular company for years. I went on to ask questions about the service he’s been receiving from them and that’s when he said “ it’s been months since I’ve seen them.”

Talk about being taken advantage of…. This was a true example of him not feeling appreciated. I simply said that I understand and respect the loyality you have with your current provider but options are good. He invited to stop by anytime I was in the area. I know for certain that if I continue to stop in and call to check on his needs he will give us the opportunity.

Becky Akins

I recently experienced taking a customer for granted but from the favorable side of the fence.  I visited a new customer last week to thank him for his business.  During the conversation, he told me the salesperson from the staffing agency he normally uses had not contacted a single time him in 3 months.   He contemplated calling the agency to place the recent order but gave me the opportunity instead since I have been keeping in touch with him on a monthly basis.   He even informed me my rate was higher but has appreciated the service and the quality of the employees we have delivered so far.  SO FAR is the reminder for me to continuously thank our customers for their business.

Gregg Nixon

I love to thank my clients past, present and future.  I send out thank you cards that I ordered specifically to do so.  With sayings such as “thank you for your continued loyal patronage”, “your confidence helps us rise to new heights, thank you for your business” and “just to let you know, we appreciate your business”.  I like to take candy to them on a regular basis and I take them birthday gifts if I know when their birthday is.  I find it a joy to go the extra mile and I consider each and every one of them #1 whether I have 1 employee with them or 100.  If it weren’t for them, I wouldn’t be where I am today.  And I love it!!

Kathie Luttrell

Ten years ago, I set a goal for myself to say thank you. I had a very successful restaurant and the best staff I ever had. During one of our quarterly staff meetings I gave a simple form to each staff member to critique each of the salaried managers.

I was shocked to learn that I did not say "thank you" or "good job" enough. The staff gave me high marks and really enjoyed working for me but this was the reoccurring theme in the comment section. I can tell you from that moment on, I try much harder to say thank you. I will never achieve my goal of saying thank you enough. You can never reach that goal.

I call customers on a periodic basis to see how things are going and thank them for their business. I tell them the purpose of the call was just to say thank you for the business and just to see if I can be of help. It goes a long way.

Rolland DeGregorio

WOW!! This lesson was very good. And it made me think how HUGE the words Thank You can be when they are said over and over. The example about everyone sending back an RSVP was powerful. This lesson made me stop and think “What can I do to always say “thank you”, even after I leave the customer. I plan on adding to my schedule a weekly time to send out a thank you card to each new contact I have made for the week. I routinely stop in to say thank you to my current customers and to customers who have used us in the past. I know how good it would make me feel if I got a thank you card for listening just because someone stopped by to tell me about their services and I took the time to listen. I always want my customers to feel that I am genuine and looking out for their best interests. I wouldn’t want to be taken for granted and I would never want to give that impression to any of my customers.

Patsy Clements.

Thank you does go a long way.   It shouldn't just be said to the external customers though, it should be to the internal customers as well that help and support you in achieving the sale.  None of us could sell products on our own, or bring in product necessary to service a new account - it's the whole team that you have in the office working for you, as well as the customer that came on board.  Sometimes it's so easy to lose sight of saying "thank you" since you just assume that the other parties involved know that you are thankful.  This has given me the motivation to call up my customers, just to see how things are going, and to thank them for their business!

Jo Welch

This actually hits close to  home and your examples are very spot on. I have 3 small children and I have come to realize that even them, at such a young age, want to hear some appreciation and gratitude. My son was doing really good at keeping his room clean but my wife and I never really thanked him for it, it just became an expectation. Gradually his desire to keep his room clean began to dwindle. We asked him one day why he had stopped cleaning his room, and my 9 nine year old said to me “well you guys don’t even notice that I do it”. It wasn’t that we didn’t notice, we had just failed to show him appreciation and gratitude. The same could be said about being a salesman. Just because the customer put in those first few orders, you shouldn’t have the expectation that orders will just keep rolling. You have to take the time to show your gratitude to your clients. My son now cleans his room regularly because we have instituted a system  of appreciation and recognition.

Cesar Rodriguez

"Give your customers the attention and appreciation they are hungry for.  Give your prospects the attention and appreciation they are not getting from their current supplier and you will take away the business."