National Clothesline

The average drycleaner loses 20 percent of his customers each year.

Most cleaners have a strategy for minimizing their “customer turnover” rate. Some cleaners collect information from customers to determine their strengths and weaknesses.

A few cleaners, however, have

an in-depth understanding of why lost customers have taken their business elsewhere, and those cleaners are prepared to take the necessary steps to prevent their departure.

Customers who switch belong to one of two categories: “jumped” and “pushed.”

Some customers switch not because of a bad experience or dissatisfaction but because they encountered another offer, which they perceived to be a better value for the money or better suited to their needs. These customers were not consciously hunting for an alternative cleaner. They were acquired by another cleaner with a better proposition — be it better quality, better service, or a better price. On the other hand, customers who have bad experiences and are dissatisfied will consciously go and look for an alternative.

Contented customers who encountered a better alternative are those who have “jumped.” Dissatisfied customers in search of an alternative are being “pushed” from their current cleaner.

A third category, the “hanging on,” is composed of customers who have not thought about switching even though they’re dissatisfied with their present drycleaner. They will be the future jumpers, or the next to be pushed.

The “jump” involves the perceptions of available alternatives. Whether dissatisfied with their current drycleaner or not, customers who perceive an alternative as significantly better have a higher likelihood of switching.

The main difference between the jump and the push is whether a customer was in search of an alternative or merely encountered (usually through advertising) a cleaner with higher quality customer service, services more in line with their needs, or simply a lower price. Those who jump for better quality or services are more likely to remain loyal to their new cleaner.

Customers who switch for a lower price, however, are more likely to do so again when the opportunity arises. These bargain hunters will always be able to find a new competitor with a cheaper offer, especially in markets where there is little perceived difference in terms of quality and services.

The “push” begins when a customer is dissatisfied or does not feel that his or her needs are being fulfilled at a reasonable rate, or at a reasonable price. He or she is likely to start looking for a better alternative.

It is unusual, however, that one or two isolated bad experiences cause a customer extreme dissatisfaction. Sometimes not even a series of problems can cause a customer to switch, provided they are handled well and resolved quickly. It’s only when there is consistently bad service, indifference to the customer, poor quality, or an inability to adequately resolve a problem, that customers are pushed into switching cleaners.

Moreover, when this happens, customers are highly unlikely to return and will probably become vocal detractors, spreading negative publicity about all their bad experiences.

The “hanging on” are those customers who have not considered switching even though they’re dissatisfied with their present drycleaner. They do not believe the alternatives would be any better.

About a year ago, a friend of mine told me about a series of unsatisfactory events he had experienced over a number of years with a particular airline. He believed these bad experiences were nothing but “things you have to put up with when you fly.” He was hanging on because he didn’t think any of the other airlines would be better.

An interesting question now arises. If these hangers-on are introduced to or experience a better offering and subsequently switch, did they jump or were they pushed?

These customer are not completely satisfied, but they are satisfied enough to wait for an opportunity to jump. Essentially they are being held at arms length, far enough away to prevent forming a binding relationship, but not so far as to cause immediate switching.

Recently my friend decided to fly with an alternative airline and described it as “a revelation.” He intends to use this new airline at every opportunity. He is one of their most vocal advocates. More important, he is now a vocal detractor of his former airline.

It is essential to understand what is causing customers to switch. How much of customer turnover is due to dissatisfaction and how much is due to failing to maintain high quality and services.

Retention marketing not only involves asking ourselves, “What are we doing wrong?”, but also asking, “What are we doing right?”

It is not only important to minimize the number of customers who are pushed, but we must minimize the number of customers who jump! An in-depth understanding of why customers take their business elsewhere can provide greater direction and focus to any customer retention program.