By Carol Spieckerman,  newmarketbuilders / Bentonville

In a world where options are exploding, yet attention spans are static, customers are actually looking for reasons to stay with — not replace — their current providers.  That’s what I’m finding as my firm compiles our annual Ten Supplier Mistakes report, which is based on hundreds of interviews with corporate decision-makers along with insights gained from our 2009 client work.

Getting someone to switch from one supplier to another is actually getting harder and that’s great news for businesses with established customer bases.  So you can generally assume that your existing customers won’t put in the effort to explore new options unless they feel forced in some way.

Here’s a great example:  A couple of months ago, the VP of sales and business development for a client company came to us concerned about her team’s readiness to meet a new set of challenges.  Competition had heated up as rival companies gained power through mergers and acquisitions, and at the same time, her company’s two largest accounts were accelerating plans to upgrade systems and top-grade staff.  She wondered if her existing team would have what it takes to fend off challengers and keep their ever-more-sophisticated clients happy.

We met with her team, conducted interviews with her key accounts and presented our findings:  Her team had gotten so used to working in silos that they had become territorial; a big problem when her clients were placing more value on cross-functional collaboration!  According to their customers, several problems, including slow response and over communication, were making my client cumbersome to do business with.  As a result, two out of three key accounts were actively looking for alternatives.

No single event could explain their plans to stray; instead, a combination of small infractions, oversights, and disconnects added up over the course of the relationship.  At the end of the day, their customers felt foolish for not considering other options sooner . . . a feeling that only grew as they raised the bar within their own organizations!

Based on this and other case studies, here are my five “Whys” you might be giving your customers an excuse to shop around:

1. Not filling the white spaces – Loyalty comes not by beating the other guy’s prices or throwing everything but the kitchen sink into your offerings, but by winning at something your competitors didn’t think was so important, like: quick decision-making, impeccable communication, buttoned-up professionalism, and consultative selling.


2. Overlooking the power of everyday exchanges – Misunderstandings between you and your customers are inevitable.  They can be over a comment or a contract; however, if your customer trusts you, you’re given the benefit of the doubt.  If not, they might assume the worst.  Trust is earned through countless small exchanges done right over a period of time, not bestowed because of a clever marketing campaign or sales pitch!

3. Downplaying the up-sell – No doubt you’ve heard that it’s easier and exponentially more cost-effective to sell more to your existing customers than it is to acquire new ones.  Up-selling boosts your bottom line and enhances your client’s perception of your innovation . . . even if they say “no” to a new offering, it registers that you brought newness!  Don’t let a singular focus on the initial sale or fear of rejection keep you from selling more or “better” to your existing customers.

4. Being “good enough” – Your clients also like being associated with companies that have a reputation for talent and thought leadership and they’ll rely on you more heavily once you achieve it!  That’s why you should invest in ongoing training and professional development . . . and treat those activities as profit centers (not resource drainers.

5. Putting acquisition ahead of retention – Risk management isn’t a very sexy topic and companies often disassociate it from profit-making; however, an account not lost is an account gained. That’s why it’s so important to regularly evaluate your current client relationships and your teams.  Don’t let your zeal for business development distract you from client management.

When a disruptive event like losing an account to a competitor occurs, the tendency is to explain it away . . . “Everyone was cut back.”  “It’s all about price.”  “Their new guy just doesn’t get it.”  Fortunately, my client looked the problem straight in the eye and went on to do something about it (in this case, by implementing training and coaching programs).  As one of their buyers said to me last week after awarding my client two new opportunities for early 2010: “Now they get it!”

As president of Bentonville-based newmarketbuilders, Carol Spieckerman is a marketing, sales and professional development specialist. She serves as a strategic advisor to product and service companies, and is a noted retail authority, author, trainer and speaker. Email Carol at carol@newmarketbuilders.com or follow her at www.twitter.com/retailxpert