Learn from Lost Customer


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Learn from Lost Customer:-

Another key component of an effective service recovery strategy is to learn from the customer who defect or decide to leave. Formal market research to discover the reasons customers have left can assist in preventing failures in the future. This type of research is difficult, even painful for companies, however. No one really likes to examine their failures. Yet this is essential for preventing the same mistakes and losing more customers in the future.

This is most effectively done by depth interviews, administered by skilled interviewers who truly understand the business. It may be best to have this type of research done by senior people in the company, particularly in business to business contexts where customers are large and the impact of even one lost customer is great. The type of depth analysis often requires a series of “Why” question or “tell me about that” questions to get at the actual, core reason for the customer’s defection.

In conducting this kind of research, it is important to focus on important or profitable customers who have left not just everyone who has left the company. An insurance company in Australia once began this type of research to learn about their lost customers, only to find that the customers they were losing tended to be their least profitable customers anyway. They quickly determined that depth research on how to keep these unprofitable customers would not be a good investment.


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