Losing Customers? Then It's Time to Examine the Value You're Delivering! 

Your sales team seems to be working just as hard as ever but revenue is flat. You do an analysis and the ugly truth is that you’re losing more customers than you’re gaining. It’s time for some old fashioned “self examination."

Ask the questions that will expose where the customer defection is occurring. The best solutions start with the right questions:

• Is the defection among all customers?
• Are you losing more long-term customers or is the defection coming from relatively new customers?
• Is the defection largest in a particular customer industry?
• Does one product line or service represent a disproportionate percentage of the lost customers?
• Is one territory losing more customers than others? 
• Is one sales rep responsible for large numbers of lost customers?
• Calculate average churn throughout the company based on specific factors and then compare each product, territory, customer industry, and sales rep to that average.
• Which competitor seems to be stealing your customers?  This question must have real data to back it up; anecdotal information from sales reps is not always accurate.
• Are there trends in the timing of the losses?  Is it seasonal?
  

Once you understand where the customer churn is occurring you’ll  need to ask why they’re leaving. The answer will be found in examining your value proposition which is defined by your:

• Products and service
• Sales team
• Management
• Service Quality
  

Ask yourself if all of these areas are still delivering the value your customers want and need.  Ask your customers, current and past, if you’re still delivering the value they need and expect.

And then ACT!  Remember the saying:  “It is not necessary to change. Survival is not mandatory.”

All the best,

Shelley Hall

Principal, Catalytic Management