Lost Customers and Profitability

Losing customers is generally a sympton of problems somewhere in the organization that need to be addressed. Every customer that goes elsewhere takes a piece of your bottom line with them. We stress customer service so heavily because of this fact. Customer service is a bottom line issue. When management has the attitude that "we can replace that customer with another one" or "we have plenty of customers", the company has a mentality that runs counter to optimal bottom line performance. Do you track your customer base and look at purchase history and average length of tenure as a customer? Analyzing your customer base will often uncover problems that need to be corrected. Take every customer seriously and look at them as a piece of your bottom line. Keep in mind that businesses erode their bottom lines by not paying close enough attention to customer retention activities and the level of service provided.