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Why Your Customers Are Leaving – and How To Win Them Back



The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

One of the most important questions facing a business of any size is: why do your customers leave?

It doesn’t matter if you are a part of a Fortune 500 firm, or if you are a local plumber that works out of a van. This question should be important to you, because it has a huge impact on your livelihood.

Oddly enough, it turns out the answer to the question could be deceivingly simple. Businesses just don’t seem to care enough about their customers.

Why Customers Leave

Even if your product is mediocre. Even if you are technologically behind your competitors. Even if your prices are higher – if you actually care about your customers, you will still have a chance at keeping them on board.

That’s because people want to work with companies that have “skin in the game” with their clients. They want you to fight for them, and to be noticeably invested in their success.

Yes, you still have to deliver on your promises, but just showing your ongoing commitment to their problems will go a long way.

Here’s the Disconnect

If you are thinking that the above fact is obvious, then you are not alone.

There are thousands of companies across the world that have deemed customer service to be their big competitive advantage. They have company rallies where they talk about putting the customer first, and their internal messaging is all around how being “customer-centric” is the engine behind the company’s success.

The problem (and the opportunity) is that although everyone says they are focused on solving the problems of their customers, nobody actually executes on this promise successfully.

Consulting firm Bain & Company calls this the “Delivery Gap”:

The Customer Delivery Gap

It’s like a New Year’s Resolution. Almost everybody makes them, but no one actually keeps them.

But it’s a huge opportunity. If everyone says that they are customer-centric but only very few actually deliver, that means that clients are rightly skeptical about such a claim. It’s your opportunity to turn their outlook upside-down by unexpectedly hopping right into the trenches with them.

Once they see you fighting for them on a personal basis, it will make a world of difference.

The Proof is in the Pudding

These types of customer relationships translate to real success, even in the stock market:

ACSI Long/Short Portfolio

This is the American Customer Satisfaction Index (ACSI) long/short portfolio. Basically it represents the idea of buying equity in companies that have high levels of customer satisfaction, while betting against the companies that customers hate.

The end result? Consistent outperformance against the S&P 500 over the last 16 years.

Real customer service translates to real wins, and it will likely allow you to decrease client turnover, while upping the lifetime value of each customer.

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Ranked: The World’s 50 Top Countries by GDP, by Sector Breakdown

This graphic shows GDP by country, broken down into three main sectors: services, industry, and agriculture.



Visualized: The Three Pillars of GDP, by Country

Over the last several decades, the service sector has fueled the economic activity of the world’s largest countries. Driving this trend has been changes in consumption, the easing of trade barriers, and rapid advancements in tech.

We can see this in the gross domestic product (GDP) breakdown of each country, which gets divided into three broad sectors: services, industry, and agriculture.

The above graphic from Pranav Gavali shows GDP by country, and how each sector contributes to an economy’s output, with data from the World Bank.

Drivers of GDP, by Country

As the most important and fastest growing component of GDP, services make up almost 60% of GDP in the world’s 50 largest countries. Following this is the industrial sector which includes the production of raw goods.

Below, we show how each sector contributes to GDP by country as of 2021:

(% GDP)
(% GDP)
(% GDP)
(% GDP)
🇺🇸 U.S.77.617.91.03.6$22.9
🇨🇳 China53.539.37.20.0$16.9
🇯🇵 Japan69.928.81.00.4$5.1
🇩🇪 Germany62.926.70.99.5$4.2
🇬🇧 UK71.617.30.710.4$3.1
🇫🇷 France70.316.71.611.4$2.9
🇮🇳 India47.926.117.38.7$2.9
🇮🇹 Italy65.022.71.910.4$2.1
🇨🇦 Canada*67.724.11.76.6$2.0
🇰🇷 South Korea57.$1.8
🇧🇷 Brazil57.820.27.514.6$1.6
🇦🇺 Australia65.725.52.36.5$1.6
🇷🇺 Russia54.131.83.910.3$1.6
🇪🇸 Spain67.420.42.69.6$1.4
🇲🇽 Mexico59.$1.3
🇮🇩 Indonesia42.839.813.34.1$1.2
🇮🇷 Iran47.338.012.42.3$1.1
🇳🇱 Netherlands69.417.91.511.2$1.0
🇨🇭 Switzerland71.924.60.62.8$0.8
🇹🇷 Turkiye52.831.15.510.6$0.8
🇹🇼 Taiwan60.638.01.50.0$0.8
🇸🇦 Saudi Arabia46.544.72.76.1$0.8
🇵🇱 Poland56.927.92.213.0$0.7
🇧🇪 Belgium68.819.60.710.9$0.6
🇸🇪 Sweden65.022.51.311.3$0.6
🇮🇱 Israel72.417.21.39.1$0.5
🇦🇷 Argentina52.523.67.116.8$0.5
🇦🇹 Austria62.425.81.210.5$0.5
🇳🇬 Nigeria43.831.423.41.4$0.5
🇹🇭 Thailand56.335.08.70.0$0.5
🇮🇪 Ireland55.437.81.05.8$0.5
🇭🇰 Hong Kong89.$0.4
🇩🇰 Denmark66.719.30.913.1$0.4
🇸🇬 Singapore70.324.40.05.3$0.4
🇿🇦 South Africa63.024.52.510.0$0.4
🇵🇭 Philippines61.028.910.10.0$0.4
🇪🇬 Egypt52.531.211.44.9$0.4
🇧🇩 Bangladesh51.333.311.63.7$0.4
🇳🇴 Norway51.836.31.710.2$0.4
🇻🇳 Vietnam41.237.512.68.8$0.4
🇲🇾 Malaysia51.637.89.61.1$0.4
🇦🇪 U.A.E.51.647.50.90.0$0.4
🇵🇰 Pakistan52.118.822.76.4$0.3
🇵🇹 Portugal64.719.62.213.5$0.3
🇫🇮 Finland60.324.12.313.4$0.3
🇨🇴 Colombia58.$0.3
🇷🇴 Romania59.$0.3
🇨🇿 Czechia58.830.31.89.1$0.3
🇨🇱 Chile54.431.33.610.6$0.3
🇳🇿 New

Industrial sector includes construction. Agriculture sector includes forestry and fishing. *Data as of 2019.

In the U.S., services make up nearly 78% of GDP. Apart from Hong Kong, it comprises the highest share of GDP across the world’s largest economies. Roughly 80% of American jobs in the private sector are in services, spanning from healthcare and entertainment to finance and logistics.

Like America, a growing share of China’s GDP is from services, contributing to almost 54% of total economic output, up from 44% in 2010. This can be attributed to rising incomes and higher productivity in the sector as the economy has grown and matured, among other factors.

In a departure from the top 10 biggest countries globally, agriculture continues to drive a large portion of India’s GDP. India is the world’s second largest producer of wheat and rice, with agriculture accounting for 44% of the country’s employment.

While the services sector has grown in India, it makes up a greater share in other emerging economies such as Brazil (58%), Mexico (59%), and the Philippines (61%).

Growth Dynamics

Services-led growth has risen faster than manufacturing across many developing nations, underpinned by productivity growth.

This structural shift is seen across economies. In many countries in Africa, for instance, jobs have increasingly moved from agriculture to services and trade, where it now accounts for 42% of jobs.

These growth patterns are supported by rising incomes in developing economies, while innovation in tech is lowering barriers to enabling service growth. As the industrial sector makes up a lower share of trade and economic activity, the service sector is projected to make up 77% of global GDP by 2035.

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