The loss of a customer is never a good outcome, especially in these competitive times. Before anyone cons you into why that customer left, let me be the first to clarify one gigantic misconcpetion — your customer did not leave over price!
A General Manager at one of my earliest employers used to goad salespeople claiming the reason they lost a certain account was “price.” His response was, “Why is it that whenever we win an account it is the excellence of the salesperson and when we lose one it was because of price?” While most sales professionals did not find any humor in his commentary, his philosophy was well placed and on point.
The final act of a customer departures may be the result of finding a better deal. However, the reason they were looking in the first place was because they either did not feel valued as a customer or, they did not see the value in the product or service anymore. Either way, their decision to leave had more to do with VALUE that anything else. When they found a better deal, it was just that much easier to leave.
Nothing is more important to the stability of your revenues than your existing customer. Your best, long-term, loyal and valued customers are the foundation from which net revenue gains begin. The churn of existing customers only results in an unstable revenue stream. You, your sales team, your management team, and your organization have an obligation to nurture and value every customer relationships. Treat your exisiting customers as good or better than you would your new customers. And, always take time to demonstrate your appreciation and value for their relationship.
Your customers likely did not buy from you on price in the first place; don’t let it be the excuse for them leaving you. Educate your sales people and your organization on valuing all good business relationships all the time. It will do wonders for your revenues!