Lost Customer Analysis Fishbone Diagram

Apply an extraordinary effective way to execute lost customer analysis - fishbone diagram. Create fishbone diagram in automatic and powerful software. Everything becomes incredibly easy with predefined shapes and user-friendly interface.

Importance of Lost Customer Analysis

For some corporations, customer is their lifeblood. If customer relationship is not dealt with properly, customer loss will soon occur. Lost customer analyses are effective in particular for those clients or segments characterized by high turnover and profits. This kind of analysis is the strongest weapon with which to recapture lost customers and/or to retain those customers who are presently considering switching. Here is an extraordinary effective way to execute such analysis - to create a fishbone diagram.

Customer Loss Fishbone Diagram

Advantages of Lost Customer Analysis

  • Listing the causes of customer loss helps to find out solutions for retaining and attracting more clients.
  • Lost customer analyses have a particularly high return on investment.
  • Customers who were almost lost may become especially loyal if their problem with the company is solved in time.
  • Understanding the reasons why a customer switches promotes a better understanding of the competition itself.
  • Reasons for Customer Loss

    See what mistakes will drive your customer away from the organized and clear fishbone diagram above. Generally speaking, such reasons mainly contain these categories: service staff, products, facilities, management and environment. Below is a detailed demonstration of some causes and the corresponding solutions.

    1. Reason: poor service. Customers actually don't buy from companies. They buy from people - your service staff. If your service providers lack sense of responsibility, have bad attitude when customers are consulting and even perform in low efficiency, customers are drove away doubtlessly. Solutions: Train your staff before taking the post. Do your customer service representatives know customers by name? If not, it is time to provide some incentive for your CSRs to turn their friendly, personal service up a few notches. Supervise their work. Assign representative to pretend to be a customer and test whether the service staff respond to and interact with customers properly.

    2. Reason: substandard products. Products form the foundation of a business. Poor quality will never gain customer loyalty. Lack of variety results in low market share. Lack of innovation leads to low customer satisfaction. Focus too heavily on price is also a big mistake. Being the low-cost provider is a definite competitive advantage. Solutions: Ensure products quality and customer satisfaction by seeking customer feedback. Customize your products for different clients rather than only produce machine-made goods. Adopt advanced technology and concepts to stay ahead in the industry.

    3. Reason: Uncomfortable environment. This is a factor that you cannot afford to ignore. Nobody would like to shop in a store which is dirty, hot or stuff. Solutions: regular cleaning, air condition and a few decorations of plants and artware.

    To sum up, your goal is to provide the best value which is an advantage you should maintain through a combination of price, schedule, service, and relationships. Spend as much time finding ways to increase value, improve service and environment, enhance management as you do finding ways to lower costs and prices. Follow this way to dig out as many reasons as possible and resolve each deficit accordingly.

    Here are more example of cause and effect diagram created by Edraw.

    More Fishbone Diagram Examples

    Academic Record Fishbone

    The title of this template is highlighted by Vector text, which can be adjusted just like other Edraw shapes. A fish frame shape is used to surround all causes, making the diagram more vivid.

    Market Cause Effect Diagram

    The character of this template is that some ideas are visualized by clipart. The crucial information is also highlighted. Refer to Customizing Your Cause and Effect Diagram for more related information.

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