3 Causes of Customer Loss from Your Service Business

Australia’s service sector makes up 70% of the country’s GDP and helps employ 80% of its workers. It is, therefore, a large sector. Due to the number of businesses that are engaged in here, it’s safe to assume that competition is high. If you don’t do your best to provide top-notch services to your customers, your competition will. And you will lose existing and potential customers who would otherwise have bought from you.

There are several things that you could be doing wrong already. And if you don’t rectify these issues, your service business will continue to lose customers. Here are some of them:

   1. You are using low-quality supplies

No customer wants to feel as if they are undeserving of quality things. This feeling can be detrimental to a business in the service sector, so you need to be careful about what you do and provide. Are your hospitality supplies of high-quality, or do you not care about the products that your customers use while you are at their service?

Cleanliness is next to godliness, so ensure that your supplies are clean. Also, make sure that your supplies are not torn or faded. Such things may show a lack of caring and neglect on your part. If you deal with customers with certain health issues who end up soiling or infesting your supplies, it would be prudent to take extra steps to fumigate your spaces and destroy the affected supplies. Customers’ safety and health should be a priority. It never hurts to invest in new hospitality supplies in such cases.

   2. You provide poor customer experiences

Even when you are providing a relatively low-end service to your customers, make an effort to make them feel important and appreciated. One American report showed that 33% of customers would consider switching companies after just one incident of poor customer service. The report goes on to show that 73% of businesses with above-average customer care service will perform much better than their competitors financially.

If you are in the service industry, the kind of service that you provide is what will distinguish you from your competitor. And the kind of employees you have will determine how satisfied potential customers are with the services that you provide. After all, they are your business representatives. The impression that they make is what people will remember so consider employee training if necessary.

   3. You don’t respond to complaints

Studies show that every single one of your customers has a circle of influence of about 250 people or potential customers who will hear bad things about you. One unhappy customer is capable of influencing up to 250 potential customers to abandon your service business. And yet, if you were to resolve the complaint customers make against your business, 70% of them would do business with you again.

What that means is you should pay close attention to customers who complain. It means they care enough about your business to want you to change. However, if you don’t pay attention to customer feedback, then you need to worry about the potential customers who may be monitoring what’s going on. If they feel that you don’t care about delivering excellent service, they will quickly find an alternative provider of that service


The service industry is dependent on the kind of services it provides to customers. If you would like your business to stand out, make sure you provide high-quality hospitality supplies, good customer experience, and adequate response to unsatisfied customers. Doing those things will go a long way in helping your service business stand out amidst the competition.

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