One-sided relationships rarely work. They leave people feeling frustrated, underappreciated and frankly, a bit pissed off. And, unsurprisingly, if left unresolved, these feelings will build up over time and lead to a less than amicable departure.
Now, we’re not here to give you dating advice (although, some of these strategies are certainly transferable) but rather three strategies to improve your client retention rate and end the year on a high.
Why is client retention important?
Before we get carried away and start listing off client retention strategies left, right and centre, you probably want to know whether it’s worth your while to invest. In short, yes. Absolutely. But don’t just take our word for it – check out the statistics below:
- The probability of successfully selling to an existing client is 60% – 70% (and just 5% – 20% for new clients!).
- On average, a loyal client will spend 67% more in their third year with your business than they did in their first 6 months.
- Existing clients are twice as likely to try your new offerings.
- A 5% increase in client retention can boost profits anywhere from 25% – 95%
Client retention strategies
It’s pretty clear that client retention is important, so having a strategy in place to manage it seems like a no-brainer, right? Correct. But sometimes, the most obvious things in life are overlooked. And that’s certainly true in this scenario, with just 18% of businesses focusing on client retention.
In this case, it does pay to be different. So, if you are keen to improve your client retention figures, keep on reading.
If you’re serious about keeping your clients around, you need to invest in email marketing. For starters, research has shown that it is 56% more effective than any other client retention strategy. But if that’s not enough to sway you, how about the fact it’s free to get started with? Or that it’s one of the very few digital channels you have complete ownership of? Or perhaps that it requires very little skill? Or how about the mammoth ROI?
The benefits of email marketing are endless (and if you’re really interested, you can find out more about them here), and with no budget or skill restraints holding you back, there is no excuse for you not to be using it. Granted, the unknown can be unsettling, but change is necessary if you are serious about growth.
The good news is, you are not alone. We’ve created this handy guide to email marketing to ensure you have all the information you need to kickstart your email marketing journey. And if you’re looking for a helping hand with it all, contact us today to organise your free consultation with one of our marketing experts.
Give the people what they want
The best way to determine whether your clients are with you for the long run or have their bags packed and ready to move on to the next provider is to ask them. It really is that simple.
The key is to uncover how they are feeling about your partnership. Are there certain things that they like that should be leveraged? Or perhaps they are unhappy with something that needs to be addressed immediately? You need to develop your understanding of each client, gauge how they are feeling and learn to refine your approach to ensure they are never left wanting more.
If you are comfortable with your client, the best way to obtain feedback is face to face. Ask them open-ended questions that spark rich, insightful responses that offer an in-depth understanding of your client’s expectations (and whether you are living up to them). Alternatively, if you are short on time or prefer to take a less direct approach, send out a survey. Again, if you want to deepen your understanding, open-ended questions will help you do so, however, if you want to increase response rates, it’s a good idea to make these optional or keep them few and far between. An example could be:
(Required) On a scale of 1 – 10, 1 being not at all and 10 being completely, how satisfied are you with…
(Optional) Are you able to provide any additional feedback to help us better understand your response?
Show a little love
Did you know the number one reason for customers leaving a company is a belief they are not valued? When you think about it, it makes no sense. Price matching or undercutting can be difficult and limit growth opportunities, however, to show a little appreciation to your clients? That’s completely free.
So, don’t let your company fall into the ‘you don’t know what you have until it’s gone’ cliche. Take action to keep those who bring value to your business around. Your clients aren’t expecting you to move mountains but rather to go the extra mile without them having to nag. It can be as simple as sending handwritten cards and a small gift to show you remember dates that are important to them or perhaps offering some free training on something which could be beneficial to them. Small gestures can make a big impact.
Looking for more strategies to ensure your clients stick around? Don’t go anywhere. We have over 10 years of experience helping businesses to create marketing strategies that attract and retain clients. Get in touch to organise your free consultation and find out more.