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Small Business ShowsBusiness Trends TodayWhy businesses are losing customers without realizing it

Why businesses are losing customers without realizing it

While today’s customers have more choices than ever, trust may be the deciding factor between a one-time transaction and loyalty. Joining us on the latest episode of Business Trends Today is Shep Hyken, Customer Service Keynote Speaker, to discuss how companies can measure and strengthen that trust through what he calls the customer confidence score.

Hyken defines the concept as a simple measure of whether customers trust a business to do what is right for them. The score uses a 1-to-10 scale that asks customers how much they trust a company to meet expectations, with a 10 reflecting full trust, and any lower score signals a breakdown in confidence that businesses must address.

“Without trust, nobody has confidence.”

The idea developed after Hyken worked with a client in the food manufacturing industry that experienced a declining Net Promoter Score due to supply chain disruptions. While service teams remained responsive and professional, inconsistent order fulfillment created downstream issues for customers. Hyken said the challenge was not service quality but a lack of trust driven by communication gaps and unreliable delivery.

Therefore, he emphasized that consistency plays a central role in building customer confidence. When customers cannot predict the experience they will receive, trust erodes and loyalty declines. He alludes that businesses often lose customers not because of a single failure, but because of repeated inconsistencies in the overall experience.

He also points to the importance of combining quantitative survey data with open-ended feedback. Hyken recommends that businesses ask customers to explain their ratings to better understand what drives satisfaction or dissatisfaction. He adds that companies should follow up directly with customers when feedback highlights concerns, as timely engagement can help recover trust.

Beyond customer feedback, Hyken suggests that many service breakdowns stem from systems rather than individual employees. While frontline staff often absorb customer frustration, recurring issues typically point to operational weaknesses that require leadership attention and process improvements.

Furthermore, he discussed a common leadership challenge, noting that executives often overestimate the customer experience their organization provides. Hyken noted that a gap often exists between how leadership perceives the experience and actual customer sentiment, stressing the importance of consistent measurement and feedback.

Hyken encourages businesses to respond quickly and effectively to customer complaints, particularly on public platforms such as social media and review sites. He then outlines a five-step response approach that includes: 

  1. Acknowledging the issue
  2. Apologizing
  3. Explaining corrective action
  4. Taking ownership
  5. Acting with urgency. 

Notably, he said timely responses can strengthen trust by demonstrating accountability and commitment to resolution.

Ultimately, Hyken reinforces that trust inevitably drives retention and long-term business success. He notes that companies that consistently deliver reliable experiences, address issues transparently, and act on customer feedback are more likely to earn repeat business and loyalty.


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Jaelyn Campbell
Jaelyn Campbell
Jaelyn Campbell is a staff writer/reporter for ASBN. She is known to produce content focused on entrepreneurship, startup growth, and operational challenges faced by small to midsize businesses. Drawing on her background in broadcasting and editorial writing, Jaelyn highlights emerging trends in marketing, business technology, finance, and leadership while showcasing inspiring stories from founders and small business leaders across the U.S.

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