Finance News & Insights

Why 4 out of 5 happy customers still take their business elsewhere

Conventional wisdom says when customers leave, they’re obviously pretty unhappy with you. But new research suggests conventional wisdom is dead wrong.
A staggering 80% of defecting customers describe themselves as “satisfied” or “very satisfied” just before they leave.

That’s the finding of research by the Peppers & Rogers Group.

And the buck stops (quite literally) with your salespeople.

Look straight at Sales

Salespeople are famously the folks who secure the revenue in the first place. Turns out they’re also the ones most linked to keeping the revenue coming.

The research found:

  • 60% of all customers stop dealing with a company due to indifference on salespeople’s part, while
  • 70% of customers leave a company because of poor service, which is usually attributed to a salesperson.

These are insights you want to share with your sales manager to make sure their people are offering ideas, info and insight on the regular.

But don’t stop there – get feedback from “defectors” about why they left you. It just might keep others from doing the same.

Info: The Selling Advantage, sellingadvantage.com

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  • Bill Goocher

    Interesting perspective/findings, but not knowing the questions asked in the Peppers & Rogers study, the assumptions appear incomplete and perhaps draw the wrong conclusion that sales is responsible for why customers churn.

    First and foremost, the objective of a B2B relationship is to make your customers successful by delivering positive business outcomes through their interactions with your company and your solution. If your customer is not getting the expected outcomes/business value/ ROI from your solution, they will churn. The B2B relationship objective is NOT to make the customer happy.

    If the study referenced is measuring customer churn in relation to CSAT (aka happiness), it is missing the mark. That said, having a happy customer is of great benefit, and we all want our customers happy, but CSAT is not / should not be the primary objective or measure of the relationship nor the primary predictor of churn.