It’s not just product and service complaints that will lose customers. Don’t forget bad experiences.
Bad experiences are where your staff are actually arguing with a customer about an incorrect order rather than solving the problem. Or the air conditioning isn’t working on a stinking hot day. Or your bartender is flirting with all the women making them feel uncomfortable.
Here are some stats from data analyst and marketer Tristan Lovell from Business Weather
96% of unhappy customers do not complain, but 91% of those will simply leave and never come back
It takes 12 positive experiences to make up for one negative
95% of unhappy customers will return if an issue is resolved quickly
The struggle with most small business owners – especially those in hospitality – is they are spending too much time in their business whereas they need to spend at least 30% of their time on their business.
The eMyth by Michael Gerber is a mandatory read for any cafe who I open up and mentor. It outlines that a business owner must wear three hats:
A cafe example would be the barista leaving their cafe to open their own cafe. They have the zeal and passion of the entrepreneur however likely do not have the equipment of a manager. The tax, lease and legal obligations not to mention staff management will be what floats or kills their boat.
What does this have to do with bad experiences? Everything. Culture is determined by the restauranteur or cafe owner/ operator and a cafe owner who is not seeing their business from a Birdseye view from time to time will create a toxic workplace and steam away customers.
Here are 10 things a successful entrepreneur does:
1. Sets goals and never looks back
3. Focus. Focus. Focus.
4. Doesn’t listen to naysayers
5. Predict trends rather than follow fads
6. Invest heavily using other people’s finance
7. Take risk
8. Create contingencies
9. Outsource all weaknesses
10. Side steps the industry when necessary creating new markets.