Jan 31 2007
Why Customers Quit
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I’m reading a book by John Maxwell called The Winning Attitude. in it he reprinted a sign that a company had posted for its employees. It read:
Why Customers Quit:
1% die
3% move away
5% other friendships
9% competitive reasons (price)
14% product dissatisfaction
68% bad customer experience
Don’t know if there is any research behind that, but I’m sure there is some truth there.
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Tags: Business Principles, Marketing
Posted in Business Principles, Marketing
Generalities, generalities. How can people sum things up like that.
In one of our industries (health related) we lose customers to death and it’s approximately 70% reason. In the above generality it says 1%
In another industry (electronics) customers don’t care too much about “community”. They go on PRICE comparison engines and buy from the cheapest “reliable” source.
Every industry is different. I am sure that in some way what he is saying is true … biggest “overall” reason for customers leaving is the bad experience … but to put it in % and make it look scientific. C’omon.
January 31st, 2007 at 8:38 amIgor, I don’t think there was ever a suggestion that this was scientific research. Just a sign hung in a business for their own employees. I thought it was worth mentioning because it rang with some truth. Obviously we should take this with a (very big) grain of salt!
January 31st, 2007 at 8:55 amNo, Stoney, I didn’t mean to “bash” the post. Just wanted to share my opinion on “generalities”
Taking a closer look I see that I missed this line…
“in it he reprinted a sign that a company had posted for its employees.”
If it was the finding in their own company then it’s kind of depressing.
January 31st, 2007 at 9:22 amI think the sign served as a notice to employees that most business is lost on the customer service side of things. I think that is *generally* the case with most industries as well. Customer service is THAT important!
January 31st, 2007 at 9:29 amA little further research revealed that the survey actually came originally from a book by Michael LeBoeuf, Ph.D., copyright 1987.
John Maxwell’s book has a 1993 copyright.
A survey on “Why Customers Quit” found the following:
3% move away
5% develop other friendships
9% leave for competitive reasons
14% are dissatisfied with the product
68% quit because of an attitude of indifference
toward the customer by the owner,
manager or some employee
~ How to Win Customers and Keep Them for Life
Michael LeBoeuf, Ph.D.
You’d have to read this book to know if he also just saw this posted, or cites the source and audience for his research… let me know if you learn more!
“Converging on the truth can make a difference.”
May 3rd, 2007 at 8:32 am-Robb Bingham
Thanks for posting that info Robb. Maxwell didn’t cite a source. Now I’ll have to check out this book.
May 3rd, 2007 at 10:29 amyeah, I’d like to see the “survey”. How did the 1% who died answer it?
This thing is quoted all over the place and it’s nothing but garbage.
May 7th, 2007 at 10:32 pm