Loss of a customer is a gain for the competitor

We had plans to eat out last night, but a strong downpour in Bangalore watered down those plans, and in the end we ordered takeaway. In fact I dropped into a nearby eatery, to order the takeaway. While waiting for the food I asked the owner of this small time eatery about business during the weekends and he said that downpours usually resulted in a lot of takeaway orders, just like ours.

What was interesting about his observation is that our cancelled night out is what fetched him his takeaway order. Now that's a business reality for you. One man's loss is another's gain. The Chinese restaurant that we intended to go to, lost out on our patronage due the rain, as a result, the small eatery gained.

A customer lost is not just limited to that loss. It also results in that customer's patronage elsewhere. That's a gain for your competitor. Therefore it becomes even more important for firms to retain their customers. It denies the competitor a chance to grow.


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