Common Reasons Why Businesses Get into Daily Losses of Money

There are common actions we take in business for the simple reason that we fail to understand how much money we lose by them. If many small businesses and start-ups understood how much money they lose by certain simple actions, they would change their behaviour very quickly.

In the last article Two Ways You Are Sabotaging Your Business Growth in 2019 we saw there are two main reasons businesses fail: the people inside the business, that is the owners, investors, and the workers, and the people outside. That is the customer.

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Common Mistakes in Business

To get an idea of how common these activities are, take a moment to think about a time you had a negative experience as a customer. You went to buy and something happened that was unpleasant or that got you upset. You can mention it in the comments, or just keep it at the back of your mind. Here is a guideline:
1. What did you want to buy? you don’t have to be too specific, just say product or service

2. What did you expect? Example: I expected the seller to come out and answer my questions. Or I expected the seller to end their call when I came in. Or, I expected the goods in three days.

3. What did they do? Example: they continued to speak on phone like I wasn’t there. Or, the seller just stood there looking at me like I didn’t exist. Or, they lost my consignment and didn’t bother to tell me anything.

4. Have you ever gone back again? Why or why not?

We asked the same question in the WhatsApp group, readers reported they would not go back to the outlet that mishandled them. In other words, that is loss of revenue for the business in question.

The most important customer review your business can get

The loss of revenue triggered by a client walking out can be calculated in every business. If you are in business or intend to go into business, put this fact to memory. An income enterprise can grow to be very successful with limited advertising, but no enterprise – large or small – can overcome the impact of negative customer experiences and the negative customer reviews that come out of those experiences. Here is what you need to know about customer reviews:

• Customer reviews are the formal reviews you see posted on a websites and social
• The most important customer reviews are the informal stories people share about their life experiences. People talk!
• Clients will talk to their friends and they will share what they experienced while doing business with you. It is called “word of mouth advertising” and it is a powerful customer review. 
• Clients talking to friends and family is advertising because it either brings you more clients or loses you clients.
• Human beings love to share negative stories. The more common negative experiences in your outlet are, the faster you will spiral towards business failure. 

As people, we ordinarily do not share good experiences as easily as we share the negative. The impact of this human tendency is not taken seriously enough in most starter, small, and medium enterprises. It therefore accounts for more failure in business than necessary.

Informal customer reviews happen for all businesses, large or small, informal or multi-national. Knowing what makes of breaks your business is important whatever business you are in and whatever the size. A good informal customer review, that is good gossip about your business will support your growth in a big way. It is the most important customer review. Keep up with your customer reviews by building your own responsive website for your business.

These four mistakes will keep your business bleeding money and lots of it 

1. Mistreating your customer: treat your customer as the most important factor for your business growth because they are.
2. Underestimating the value of a single customer: always keep in mind the overall financial impact of one walk away customer and do your best to make sure they do not leave your business upset.
3. A no-feedback culture: Ask customers for feedback, listen to it and find ways to use that feedback as you grow your business. Large organisations have a Customer Care desk or a Customer feedback platform and an employee *PAID* to listen to the customers because they understand the importance of that feedback.
4. Constant even if slow loss of customers: keep in mind that if you are losing more customers than you are gaining, you cannot stay in business. How you treat the ones that come determines – to a very large degree – if more will come or not.

Articles in This Series

Two Ways You Are Sabotaging Your Business Growth

Read Article Here

The Actual Cost of the One Customer Who Walks Away

Read Article Here

Best Income Tips on Attracting More Customers
Read Article Here

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