Published on March 14th, 2017 | by Jose Vasquez0
The 5 Ways Startup Tech Companies Lose Top Clients
Nobody likes to lose clients, but understanding the loss can help you prevent them in the future.
Your clients are responsible for keeping your business going—especially the big ones. You know the ones I’m talking about. Most of your revenue is tied up in their patronage, and if they left, you’d have to scramble to make up for the loss. Obviously, it’s better to have lots of clients of this caliber, but that isn’t always possible, especially for new businesses.
All you can do is minimize the chances that those major clients will leave, and the way to do that is to understand why such a client might leave in the first place:
- A major mistake. We all screw up. It happens. What matters is how you respond. Did you tell your client about the mistake proactively and scramble to make up for it? Or did you try to cover it up, lie about it, or ignore it? A little accountability goes a long way here.
- How often are you in contact with your client? Client relationships need to be nurtured over time; if you go weeks without so much as a phone call, they’re going to feel neglected.
- There’s a chance your client simply no longer needs your services. If this is the case, they’ll depart without so much as a second thought. There isn’t much you can do about this one other than to keep your services updated.
- A new competitor. When a new competitor emerges with a better service or a lower cost, you have to fight to keep your clients with new offers or better loyalty programs.
- No proof of worth. Clients come to you not as a favor, but as a value exchange. You give them something, and they give you something—if they find that what they’re giving you outweighs what you’re giving them, they’re going to leave. Go out of your way to prove your worth with ROI statements and thorough evaluations.
If you can prevent these five motivations from manifesting, you’ll have a far better chance of keeping your biggest clients around for the long haul. Customer retention is the key to success, so don’t allow your business to have a revolving door policy!