You know, that sinking feeling of regret after a purchase.
I’ve experienced buyer’s remorse plenty of times and still do from time to time.
That feeling of regret is a red flag signaling you’ve over spent, there’s a lack of value, or little to no trust of the product/service will meet expectations.
As a business owner, buyer’s remorse can be the kiss of death for your business.
Often times, customers hold the business responsible for their negative feelings and this can lead to no repeat business, and bad reviews.
Although buyer’s remorse can be the result of the consumer’s actions or emotional triggers, the business can suffer the backlash.
Take my old man, Ryan and his recent car purchase for instance. Old Betsy, his 12 year old Kia Optima, has been on her last leg for a while. A week ago we found out she needed over $2,000 of repairs.
Instead of sinking more money into fixing Betsy, he decided to get a new-to-you car.
After all was said and done, he paid $100 more in monthly payments for a 4 year old Honda and they gave him less than $500 for Betsy. In addition, his car insurance increased $40 dollars.
Don’t get me wrong, the Honda is a sweet, sleek, sexy thang. It drives better than Old Betsy, it’s safer, and has the latest tech features.
So is the Honda worth the extra $140.00 in monthly payments? Was it what Ryan intended on buying? Was he treated fairly?
All of these questions invaded my mind when Ryan brought the car home.
I wasn’t there when the wheeling and dealing went down and Ryan’s starting to display buyer’s remorse behaviors.
Clearly he went over budget and that’s the core reason he’s feeling regretful.
So what is he doing about it?
For starters, Ryan’s renegotiating his insurance plan. If it isn’t reduced, he‘ll search for a new insurance provider.
Secondly, he’s driving in silence to listen for any unusual sounds in case there’s a slight chance he could return the Honda.
That’s pretty much it.
If you’re wondering if my old man will make a second purchase from the dealership or refer someone, probably not.
He’s more likely to give a negative review than refer someone and doesn’t even remember the salesperson’s name he worked with.
Ryan’s scenario is so common in business that many entrepreneurs either try to avoid doing business with the “Ryans” in the world or cut ties from them after the purchase. Very few business owners would attempt to satisfy a remorseful customer.
Yet wise BOSS LADIES know customers like my old man have advocate potential. With a few tweaks in customer experience and support, clients like Ryan could be raving fans.
What can you do to avoid buyers remorse & build customer loyalty?
Loyalty begins in the sales cycle.
Educating clients on who you are and how you work is the first step in creating a transparent sales cycle. When you make the unfamiliar familiar for prospects, they know what to expect which builds the first stage of trust.
Putting the relationship before profit by doing right by your client is another key element in building deep trust and staying top of mind. Of course, this doesn’t mean you should lose revenue serving your client. It does demand consideration when offering your solution.
For example, if the car salesman would have noticed Ryan’s uneasiness and reassured him of making a great decision or offered an alternative, Ryan would’ve came home excited about his hot new car. He would’ve also been appreciative of the salesman’s thoughtfulness.
With one simple act of putting the relationship first, the car salesman could’ve become memorable, increased word of mouth buzz, and received a referral.
How does your business measure up?
What gets measured gets improved.
Do you know your client retention rate? Established companies that focus on customer retention will grow their business faster and more efficiently by tracking their customer retention rate. For a simple way of measuring your client retention rate, try this formula:
E=# of existing customers at the end of given period.
N= # of new customers during given period.
S= # of customers you had at start of period.
Customer Retention Rate(CRR)
CRR= ((L-A)/S) X 100
Knowing your client retention rate will take the guesswork out of growing your business.