The 29 Costly Implications of Losing Customers

I am not the originator of this list, but found it instructive as to the success and failure of companies and success.

1. A lost customer means lost feedback and the opportunity to improve.

2. A lost customer means lost sales and revenue that is lost forever!

3. A lost customer causes asking, “Why didn’t we recognize the problem before losing them?”

4. A lost customer means having lost a testimonial to use in selling to others.

5. A lost customer opens us up to potentially negative word-of-mouth that might affect our reputation with prospects, customers, suppliers and staff.

6. A lost customer means having lost all their possible future referrals.

7. A lost customer has a negative impact on the confidence of our entire staff.

8. A lost customer increases the urgency to prospect for new customers (and often at the worst time).

9. A lost customer and the resulting reduced revenue can slow or even halt plans to grow.

10. A lost customer means less money available for payroll, commissions and benefits for the work force.

11. A lost customer can demoralize the sales and marketing staff.

12. A lost customer may become an unexpected opportunity for the competition.

13. A lost customer means a distraction from other important issues.

14. A reputation for losing customers can hang a black cloud over the ability to find and hire the right personnel.

15. A lost customer can be the beginning of a reputation for losing customers that hangs like a black cloud over the ability to find and hire the right personnel.

16. A lost customer can degrade an image and reputation in the marketplace.

17. A lost customer forces undertaking tasks and changes that weren’t wanted or planned.

18. A lost customer can have a damaging impact on our sales projections, cash flow, receivables, and payables.

19. A lost customer can cut volume and prohibit meeting buying commitments with suppliers and vendors.

20. A lost customer can trigger the need to spend un-budgeted funds on marketing, research, new customer acquisition, etc.

21. A lost customer can disrupt inventory levels, inventory investments, ordering procedures and reorder frequency.

22. A lost customer may cause the need to refocus priorities and go in a totally different direction.

23. A lost customer can cause the need to focus attention on poor performance rather than growth opportunities.

24. A lost customer can cause doubt about the validity of service fulfillment and pricing strategies.

25. A lost customer causes hard work in an attempt to regain the business.

26. A lost customer can cause overreacting and even panic when confronted with similar situations with existing customers in the future.

27. A lost customer can discourage a prospective salesperson from ever trying the job.

28. A lost customer can lead to an accounting, collection or legal nightmare.

29. A lost customer can devalue the worth and saleability of a business.

I did not create this list, I don’t know its origin, but I find the value in the message, and I hope you do to.

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Bryant Nielson is heavily involved in the Corporate Training and Leadership and Talent space. He currently is the Managing Director for CapitalWave Inc and the training division, Financial Training Solutions. He brings a diverse corporate experience of organizational development, learning and talent development, and corporate training, that also includes personal coaching of top sales individuals and companies of all sizes. For the prior 4 years, Bryant was the Managing Director and Leadership and Talent Manager for Lengthen Your Stride! LLC. In this position, Nielson was the developer of all of the courses for MortgageMae University (MMU), the Realtor Development Center (RDC), and of Lengthen Your Stride! (LYS). In that position, he developed material, refined over many years of use and active training, and condensed the coursework and training to be high impact, natural learning, and comprehensive. Bryant has over 27 years of Senior Management experience encompasses running his own Training and mortgage firm, in New York City. He strongly believes that the corporate training is not to be static but should 'engage and inspire' students to greater productivity and performance.

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