5 Signs Your Small Business is Losing Customers

Heather Legg

October 14, 2013

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No one wants to admit it if their small business is losing customers, whether the signs are clear or not.

But it's like a leaky roof, if caught early enough; you can repair the damage without too much loss. But if you wait till it gets too bad and glaringly apparent, you may have to take the whole roof off and replace it.

So look for some of these early signs if you think there may be an issue going on - it's better to catch it early and just repair the roof...

1. Word of mouth isn't happening

With a small business, word of mouth is gold. The best advertising is a positive word, and what means more than a customer passing your name on? If customers are doing that, not only can you get new customers, but you can also probably count on repeat business. But if that isn't happening, it may mean you've got some unhappy (or unimpressed) customers who you may lose down the road.

2. Your competition is growing

You may own a landscaping business and all of a sudden you're seeing your competitor's signs filling areas you used to do work in. Maybe you own a tutoring service and you're starting to see more car magnets from your competitor around town. This could be a distinct indicator that your competition is grabbing business that once was yours, or could have been.

3. Customers think you don't meet their needs anymore

Maybe you haven't any complaints, but you're not seeing the business you used to. Sometimes it happens after a change, whether in interior set up or services you offer. If you've added a lot of new items to your restaurant menu and taken old ones away and all of a sudden you aren't getting the business you once did, maybe you changed for the worse, not the better.

4. You don't have repeat customers

If you are only getting first time customers and not repeat customers, you are losing quite simply losing them. If you never see a familiar face or hear from a client who wants more, you're losing them. Sure, new customers are great, but what you want is repeat business - that's a true sign of a successful business.

5. Customers look unhappy

It doesn't get more obvious than this - a customer should be happy to do business with you, and when they're not, you will probably lose them, even if they finish this one project or purchase. Look for signs from them, as obvious as a smile.

Reading customers is tough.

You want them to come back after a great experience and the thing is, most aren't going to tell you if they're not happy. That takes away your chance to make amends.

So the key is, find out what your customers want and deliver. If you notice a decline in business, look hard at the signs around you and make some changes.

Remember, fix that leaky roof when it's just a minor drip, and don't wait till it falls in.