leaky bucket

noun

An analogy to describe why companies lose customers. To hold water, you must plug most or all of the holes in the bucket. Similarly, to retain new customers, a company will need to fix most or all of the factors contributing to current customer dissatisfaction.

Example: They keep acquiring new customers without worrying about the issues that their current customers have. They need to focus on fixing the holes in that leaky bucket.

Previous Term: LBO

Next Term: letter of intent