They Didn’t Steal Your Customers, You Lost Them
When we lose a customer to another company, the tendency is to blame the competitor for stealing the account. Surely, they must be doing something underhanded or shady to make your customer jump ship. If nothing else, it makes us feel better when saying it.
But while some companies do use misleading sales tactics, there is likely a bigger reason. One that’s less comforting to look at.
Attrition.
More specifically, Extraordinary Attrition.
A quick primer: When “Ordinary” attrition occurs, it’s from issues outside of your company’s control. For example, when a customer moves outside of your area, they have some financial issue, such as losing a job or bankruptcy, or if they die.
When “Extraordinary” attrition occurs, it’s within your company’s control. For example, a customer cancels because of your company’s performance, or they stop using the system. But also included in “Extraordinary” attrition is when a competitor is able to win over your accounts with its marketing promotions or sales strategies.
How can that be considered under your control?
Like it or not, your customers are being bombarded by marketing messages from your competitors all the time. You may think that you don’t want to add to that clutter, but restricting your communication is not the answer. The reverse is actually true. You need to be communicating regularly, so you can stay top of mind.
The secret is to be sure you are adding value when you do so.
When you are NOT top of mind, not taking care of or adding value to your customer – that’s when they are at risk of being ‘stolen’ by a competitor.
But when you are adding value (above and beyond your monthly monitoring service) that’s a different story. When YOU are the first thing they think of when contemplating their home safety and security, then they will compare everyone else to you!
You can’t stop a competitor from sending their marketing messages, but you can definitely reframe how your customers look at those messages when they receive them. When you become their trusted advisor, your customer is far less susceptible to competitive promotions and you are better protected from Extraordinary Attrition.
A little competitive information helps too. Make sure you have a good understanding of your competitors and what they offer, and what, ultimately, differentiates you from them. And don’t forget DIY systems, they are also your competitor.
Once your differentiating factors are clear, and your service offering is competitive, don’t wait for your customers to ask about them. Actively market service and technology upgrades. It’s actually a disservice to your customers not to continually offer ways for them to get the most out of their investment with you.
To put it another way, your customers are yours to lose.
So remember, nobody can steal your accounts without your permission – and lack of customer service and proactive communication on your part is as good as an invitation.
What do you do to add value to your customers regularly? We want to hear from you! Drop us a line at [email protected]