4 Reasons Why Service Business is Losing Customers (And How to Fix It)

Posted On:   |   Last Updated:   |   Posted in

You are running a service business and have an adequate amount of customer base – those who are within your target demographic and who keep returning to use your services. You are constantly having sales and discounts but one day you realise that everyone keeps walking out on you. That is a sign when you know you need to identify the reasons why your business is losing customers.

Here are four common mistakes that cause your business to lose customers and what you can do to fix it.

  1. Poor customer service

    Customer services are a great deal that really can decide your business fate. In fact, a study shows that over 90 percent of customers who are dissatisfied with a company customer service, will just not come back rather than telling the business what went wrong.

    How to fix it:

    • Greet customers politely with a smile, better with saying hello or hi with their name (for returning customers). Research shows that more than 63% of consumers expect to be recognized as an individual, thus, it can enhance the connection and relationship between the company and its customers. Open a meeting with your staff, give them customer service etiquette training. Professional staff with good manners will pleased the customers more than a rude one. The research also indicates 37% of customers switch to another brand after experiencing rude and unhelpful staff.
  2. Ignore customers’ feedback.

    The emergence of social media has given consumers a new way to interact with the companies they are interested in. Mostly, consumers use social media to vent or complain about bad service they just experienced. This is a very bad sign for your business, worse if you decide to ignore them. You might potentially lose your returning and new customers if you do not respond to all feedback, regardless of positive or negative feedback.

    How to fix it:

    • Be patient, the majority of customers who vent on social media just want to be heard and be understood. Even if you cannot solve the problem entirely, the simple act of responding to the complaint or feedback was good enough to improve the customer’s experience. Get in contact with the customer, find out and understand what caused the unpleasant experience, and provide suitable solutions to her. Most customer will appreciate your gesture to want to make things better for them.
  3. Not treasure your loyal customers

    There is a saying: “Acquiring a new customer is anywhere from 5 to 25 times more expensive than retaining an existing one.” Many businesses are falling into this mistake, they put more resources, create marketing campaigns that target mostly on new customers.

    How to fix it:

    • Instead of focusing on marketing campaigns that can attract new customers, try to improve on your customer loyalty program and promotion. You don’t have to spend time and resources finding a new client — you just have to keep the one you have satisfied. Some good examples of what you can do for your loyal customers: create a loyalty program or membership, vouchers for returning customers, free goodies or services for purchasing your service more than 5 times, etc.
  4. The products or services failed to meet expectations

    Again, if your business cannot meet your clients’ expectations, disappointed customers are likely to share their disappointment with their followers on social media, and that will potentially influence other prospective customers.

    How to fix it:

    • Always check on your staff skills to make sure they can deliver the best quality of the lash service provided.
    • Regularly test your lash products to ensure consistency in the quality of the products your business is using.
    • There are many reasons why customers are dissatisfied with your service, therefore, communicate with them, understand the reason why and do whatever it takes to create and deliver a service that is worth paying for.

    Are you making these mistakes above? If yes, it is good that you can identify the mistakes and take action immediately to prevent it from happening in the future. The success of your business depends on how you overcome those challenges and turn them into opportunities.