Sales Tip - Hidden Costs of Losing Customers
Salespeople have been warned for years about the economic impact of losing customers. Here are new hidden costs that should be considered:
* Negative word-of-mouth, especially with the advent of blogging and social networking where people can now broadcast their points of view to thousands or millions of people.
* Substantial costs in trying to acquire new customers to replace lost customers.
* The amount of time it takes for a customer to become profitable to a company.
* Lost opportunities for customer referrals and recommendations.
* The toll that losing customers takes on a company's employees resulting in layoffs and office closings due to lost revenues.
Source: Adapted from Retaining Customers in Tough Economic Times, by Kyle LaMalfa