Do you know the real reasons why your lost customers decided to stop working with your company? Here is a way to find out.
When you are part of a senior management team running a large business, it can be easy to become insulated from the day-to-day realities of how your company is handling its customer base.
Often, internal customer satisfaction data and lost client information is filtered and distorted as it makes its way up the organizational chain of command, resulting in a less than complete picture of the actual customer experience.
Without a clear process for its collection and distribution, fragmented (and often faulty) departed client feedback makes its way throughout an organization.
The source of much of this faulty information is client service personnel, who ultimately are not in an objective position to gather and share unbiased feedback, due to factors such as personal client relationships and potential conflicts of interest.
Since customer service personnel are unlikely to get an accurate depiction of why clients have left, they often unknowingly disseminate incomplete or inaccurate information within their organizations. When senior managers make decisions based on inaccurate information derived from lost clients who were not fully candid, this can lead to strategic misalignment.
Although internal communication challenges can be pervasive, there is an effective counterbalancing strategy that can be implemented to provide unvarnished feedback to decision-makers. Conducting a Departed Client Analysis (or Lost Customer Analysis) program may entail hiring an independent third party to conduct debrief interviews and solicit constructive feedback from lost customers who have recently fired your firm.
By opening up a formal feedback loop with lost customers, your company can display a commitment to improvement and learning from past mistakes. By capturing the root causes of customer discontentment directly from the source, your organization will be able to take corrective action and ultimately improve client retention.