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.