New Business Owners: Four Ways to Keep Customers After the Purchase

Sometimes the sale process can shift the focus away from the customer. Customers often pick up on a merger or acquisition, and worries about changes in ownership can drive them to competitors.

According to Laura Miles and Ted Rouse of the Wall Street Journal, “Customer defections are a major reason why more than half of all mergers fail to deliver the intended improvement in shareholder value. (Businesses) typically lose sight of customers at the time when they are most likely to bail.”

And while there are many components to executing a successful post-sale integration  – customer focus is critical.

Four Ways to Decrease Customer Attrition

1. Put yourself in the customer shoes: A Bain Study discovered that “companies that do the best job of retaining customers – and attracting new ones – is to adopt a customers view of the merger as they make important integration decisions. “The company should aim to put itself in the customer’s shoes and understand their pain points (or placement in the prospect funnel), both real and perceived, throughout the transaction process.
2. Communicate effectively: once a customers place on the buying or selling funnel is established, it is important for sales people or the new ownership to have consistent answers to likely questions. “How your people talk and answer questions from clients and prospects is critical to their retention,” said Bob Hatcher of Better Sell Solutions. 
3. Watch out for competitors: Effective communication is one way to offset competitor thievery. According to a recent Deloitte report on customer attrition, found that a “common reason for customer switching was receiving compelling competitive offers from other institutions. The best way to combat pilfering to competitors is to clearly state the value of the newly-acquired business. “Go on the offensive and proactively communicate their strengths and the benefits of the new management for the customers” explained Deloitte. “These communications can remain positive and go beyond simply assuring customers that the changes will be minimal and that the service will not be disrupted.
4. Emphasize multiplexity: Business sales can cause significant customer attrition, when the business is personality driven such as service industries, like advertising, law, medicine and consulting. One of the best ways to prevent that attrition is through multiplexity, or as Michelle Rogan of INSEAD Knowledge explained it. “The diluting of control held by individual executives by creating a number of ties between the client and company.” She found that if relationships with clients were touched by several employees in the company, the likelihood of client loss following an owner’s departure is significantly lower.

By following these four simple methods in the midst of capturing synergies and avoiding technological disasters, you will keep your eyes on customers before they are able to bail.