The statistic we have quoted a lot relating to customer retention is that 68% of lost business is due to perceived indifference. That means that about 2 out of every 3 customers were lost because the customer perceived that that company was indifferent to them.
It’s kind of an odd way to look at things. This statistic does not suggest that the company specifically did something to lose the customer. This statistic can be interpreted to convey that it was what the company did not do that lost the customer.
So, let’s think about this as it relates to our individual roles…
The reason for the customer loss may not be the billing error as much as it is the LONG process to get the error rectified.
The reason for the customer loss may not be the content of the e-mail in response to the customer complaint; instead, the reason may be the lack of empathy conveyed in the company response.
The reason the customer decided to start buying the product elsewhere may not have been the callback from the company after the customer left a voice message with a question; the reason could be the fact that the customer call was not returned for a week after the message was left.
The reason they didn’t renew their annual membership wasn’t that the membership was a bad value. It’s just that the only time the organization contacted the customer was when the company was trying to sell the customer something.
When you think about how to better the customer experience, instead of always focusing on how to improve what’s currently done, consider what aspects of the experience lack urgency on behalf of the customer, lack empathy, lack responsiveness, or lack an intent to develop a relationship.
To improve retention, don’t always focus on what the company did. Sometimes focus on what the company did not do.