Small business administration conducted a study about why busi-nesses lose customers and the distribution of the lost customers was the following (all lost customers are 100%): 1% dies, 3% move away, 5% choose to do business with friends or relatives, 9% find a place that's cheaper, 14% have unresolved complaints that drive them away, and, finally, 68% of all the customers you lose leave you because they perceive indifference or a poor attitude from your taxi business.
Let's talk about this in detail. 1% dies. There's nothing you can do about it. 3% move away, but at the same time there are people moving into your area. If you do smart direct marketing campaigns (lists of those moving into your area are easily available), you can convert those who move into your area into your clients and customers.
About those 5% that will do business with friends and relatives, – there's nothing you can do about that.
9% of customers will find a place that's cheaper, but you don't want them as customers to begin with. Remember this number: 9%. That's the percentage of people to whom the cheapest price is the number one priority, the deciding factor when making a buying decision. It means that only 9% of your customers are cheapskates. They are never good customers: not only are they cheap, but also they are usually the most demanding. And, because they'll fight long and hard for the cheapest price, you won't be able to make any money dealing with them. So, the solution is simple: you don't want them as customers. Don't advertise low price and get over losing those customers to who beat you on price and demand you become the cheapest. There's only 9% of them. Do business with the remaining 91%.
The last two categories combined, 14% that have unresolved com-plaints thatdrive them away and 68% that leave because they perceive indifference from the business, are equal to 82% of the customers that you lose.
Think about it: it is in your power to keep 82% of the customers that are thinking about leaving you. It's a huge number, it's a lot of money and the way to keep these customers is to implement a successful complaints management system. Keeping these 82% in addition to standing out from your competition is another way to build a relationship with your customers and build a sustainable business. For specific ready-to-use examples of how to keep these 82%, click here and get a copy of 17 Mistakes You Must Avoid That Can Ruin Your Taxi Business book and 3 best issues of Cab Millionaire Club Letter!