When a customer dumps you

The other day, the internet was ablaze as many, especially bloggers, took to social media to cast aspersions on a certain thriving entrepreneur who made a rude comment as a reply to another entrepreneur who had asked him to buy items from her. By the time the thriving entrepreneur was making apologies and amends, it seemed the damage had already been done to his business reputation, and maybe putting his social media brand ambassadors at an awkward position. That could have been an isolated case but it still offers vital business lessons as to why your valuable customer may leave. Here are a few pointers.

Your attitude
Because you’re a big name in that specific business segment, you may choose to treat some of your customers in a bad way. Some may be dirt-poor and would ask to enter in a staggered payment programme for goods and services they procure from you. Their missing on a given timeframe may be informed by factors beyond their control, but your ego is something else. You repossess whatever goods you gave, and you don’t compensate the little they have already paid, claiming they forfeited any rights for reimbursement, and profits on their miseries. And because your name is synonymous with your business, you arrogantly tell them to take the case wherever they can, as you know right hands to grease to protect any damage to your reputation.

Your employees
A customer may strike a kind of rapport with that regular employee. This rapport doesn’t go beyond the business, but other employees become envious of that employee. They don’t understand the relationship between that employee and customer. Soon, gossip mills are on an overdrive, and the rumours get traction. It injures both the customer and employee. In a short time, the employee ceases being that loyal customer. You see that customer beating a path to your competition right next to your door or down the same street. Remember some people have fragile emotions and it takes a long time to heal. By this time, you’re left with questions whether it’s you, the quality of goods or services that made that customer bolt out.

When trust is lost
There are businesses that operate solely on trust. Sample the case of a businessman in Brazil who was procuring goods from China. This businessman was a frequent visitor to a Chinese goods manufacturer. It came to a point where the businessman and manufacturer established trust. Now the manufacturer increased production capacity and entered into an agreement with the businessman where the latter was to take stock on credit and repay a certain percentage once the stock was sold. 

The manufacturer would ship goods to the nearest port at own cost. Sample this with where a locally established manufacturer had established trust with such a businessman, and the latter gets a big contract to supply goods and runs to manufacturer brandishing invoice and contract agreements but the former demands three-quarters of down payments. The businessman has nothing to that tune, and the deal falls out flat. From that misgiving that develops, you won’ see that customer again.

Other customers
There are customers who may hate your usual customer, who may be known as a generous soul to a fault. Behind that customer’s back, you may hear strange narratives if not gossip advanced. You hear the customer is surveying your business and transmitting info to authorities, no wonder surprise raids are conducted at your premises to ascertain authenticity of your stock-in-trade. Your premises are broken into and you hear your loyal customer is one who provided intel on the same to thugs without even authenticating anything.  Poor customers can end in gallows on false accusations!

Competition
A new market entrant sees how you conduct your business and brands itself in your style, except here branding is different but goods and services on offer are the same. The difference is the price. The new entrant offers lower and discounted prices, including credit services for repeat bulk purchasers of goods and services. Slowly, your market niche gets eaten away. By the time you’re trying to outdo that competition, it may be late. You don’t know the enticements offered to lock your customers to the competing business. 

But sometimes competition can work to your advantage based on trust and rapport you've built that long you’ve been in business. Let’s say civil servants and hustlers who take things on credit and pays promptly once salary and wages reflects. A new entrant, who is not known by locals, will have a hill to climb snatching that customer base under your feet.

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