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SBA Study Determines Why Customers Leave

When it comes to the question of why businesses lose customers, the perception that members of the sales staff don’t care ranks as the leading factor, according to a study of all types of small businesses by the Small Business Administration (SBA).

Nearly 70% of those polled in the SBA study indicated that the perception of a non-caring staffer led customers to leave and buy from other businesses — by far the strongest response of six factors.

Product dissatisfaction ranked second, with 14% of those polled. Price ranked third and was the reason that 9% of customers changed businesses. Recommendations of friends ranked fourth, ahead of moving away and death.

The SBA study reinforces the need to pay attention to your customers. Paying attention is more than courtesy and common sense — it also contributes to keeping customers from leaving and taking their business to your competitors.

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Why Customers Leave

Rank of Importance	Percentage (Customers)	Reasons Why Customers Leave
1	68%	Perception of Non-Caring
2	14%	Product Dissatisfaction
3	9%	Price
4	5%	Friends' Recommendation
5	3%	Move
6	1%	Death

'Making the Sale: Getting Great Clients to Choose You' Available at BuilderBooks.com

Read “Making the Sale: Getting Great Clients to Choose You,” available at BuilderBooks.com, for some more tips on developing good systems and procedures to serve your customers. The book includes a CD of forms and documents you can customize for your business. To order it online, click here, or call 800-223-2665 to order.

To read, "Strategies for Keeping Customers," from the SBA's Online Women's Business Center, click here.

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NAHB Has More Than 170 Resources to Help You Run Your Business More Profitably

Go to NAHB's Business Management Tools Web pages for instant access to more than 170 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more. 

Resources are added weekly, so bookmark www.nahb.org/biztools to go directly to these vital business management resources.

Local and state associations, link directly to www.nahb.org/biztools from your Web site and give your members instant access to these resources. It will make your HBA's Web site the place to go for the information and guidance they need to succeed.

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NAHB’s Business of Building e/Source is your monthly electronic guide to the hot issues and emerging trends in home building business management. You’ll find practical advice, tricks of the trade and sound business guidance — all delivered monthly, straight to your desktop, in a quick and easy-to-read format. Business of Building e/Source is available free to NAHB members and their employees. To subscribe, click here on the members only side of www.nahb.org.

Mark Your Calendar for the 2005 Custom Builder Symposium

The 2005 Custom Builder Symposium 2005 is scheduled for Nov. 11-13 in New Orleans. Mark your calendars. For more information, email the NAHB Business Management Department, or call 800-368-5242 x8388

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