I gave an interview on the importance of getting lost customers back. The result was information I think you will benefit from.

Question: Why are lost customers important?

Gitomer: How you lost them will give you a better insight to grow your business. Most of the time you lose a customer, it’s your own fault. If they got a cheaper price and went somewhere else, that means you were vulnerable to their loss. Each time you lose a customer there’s a reason. And there’s probably only about 10 of them. You were difficult to do business with, you were rude, service was lower than expected, they were neglected.

If you lose a customer once for a reason, it’s OK. If you lose two customers for the same reason, that’s stupidity. It’s management’s inability to recognize the difference between a problem and a symptom. The real problems have to be identified. It could be as simple as not being available when the customer needs you.

Customers still need you after business hours. The answer to that vulnerability is the Internet. I can buy a car, lawn mower, house, or a book online in the middle of the night. Be available to your customer. It’s as simple as that.

A company looks at losing a customer as a dollar value loss. That’s the tip of the iceberg. What is the customer who went away saying to other potential customers? What is the goodwill and reputation that are lost?

Question: Is there any such thing as an irreversible lost customer?

Gitomer: Sure. But that doesn’t mean you can’t fix the problem so it doesn’t occur with another customer. You have to look at the lost customer and see the opportunity to never let that happen again. Look at the lost customer as an inexpensive lesson, rather than the dollar value out the window. There’s an easy way to find out why you lost a customer. Ask them.

Choose 10 customers you lost, call them, and you’ll get a lot of truth. You have to ask hard questions. If you question the customer intelligently, they will give you real answers. Most companies call up and say, “On behalf of the company, let me apologize.” That’s babble and butt-covering. What you need to find out is why you lost them. That takes guts.

Question: How would you phrase that question?

Gitomer: Asking the customer what you could have done differently will begin a dialogue. From there, ask what a customer would rather have happened. If done right, you can ask them if they are willing to give you another chance. You can still ask for a sale at the end.

Question: How many people actually get turned around on this strategy?

Gitomer: I would venture to say you could turn around half. That depends on what happened. If all you did was provide lousy service from a rude employee, you could probably get most of them back.

When you lose a customer you have to be aware of bad word-of-mouth advertising. Word-of-mouth is a huge expense. What would happen if your lost customer went to a business meeting that week, and someone said, “I gotta buy a copier, any suggestions?” and they replied, “Anyplace but…” Instead of losing one customer, they might lose 10.

Question: That sounds like a quote from your customer loyalty book: “It never costs as much to fix the problem as it does to not fix the problem.”

Gitomer: You are more than correct. Lost customers cost immeasurable fortunes.

Question: What are the top things you should do to get lost customers back?  Gitomer: Here’s the nutshell version of what to do to recover and prevent future losses. Recognize that all of these things require intense managerial involvement.

1. Call the customer personally.

2. Identify the problem, not the symptom.

3. Try to resolve it with the customer in the best manner possible. Not just an apology, but a real offer of reconciliation.

4. Ask for another chance.

5. Figure out how to prevent it in the future.

Lost customers are a huge overlooked resource. Most salespeople pass them by. Have the guts to call a few, and take the results to the bank.

Free GitBit. Want more ideas on customer recovery? It’s yours by going to www.gitomer.com. Register if you’re a first-time user and enter the words “personal touch” in the GitBit box.

President of Charlotte, N.C.-based Buy Gitomer, Jeffrey Gitomer gives seminars, runs annual sales meetings, and conducts Internet training programs on selling and customer service. He can be reached at (704) 333-1112 or by e-mail at salesman@gitomer.com.