No matter if you’re an independent entrepreneur
Small business owner or you are an exec for a multinational company, one thing is for sure – client retention is a top priority. For the typical company, 80 percent of your future revenue will come from about 20 percent of your returning clients.
Of course as we know, some new clients will walk through the door and stay for the long haul, and others will move on as relationships change. But as technology and business motivations change, how do we maintain that customer loyalty that has served us so well in the past? As those relationships evolve, we must sometimes make some changes and alter attitudes to stay as valuable to your clientele as they are to you. Here are some tips on to retain your clients.
You should never take your clients for granted obviously. But in the race to attract new clients we may lose focus on our company’s greatest asset. As it turns out, adding a new client will cost 5 times more than retaining an existing one. Retaining clients isn’t merely maintaining your bottom-line, they are worth the extra effort. In fact, according to Bain and Co., a 5 percent increase in customer retention can increase a company’s profitability by 75 percent. If you need to reprove yourself to your client, just remember that making that extra effort is worth it.
If you have just gained a new client, that partnership may seem like it will last for untold years into the future. However, according to a recent PriceMetrix study retention of customers and clients drops dramatically to 74 percent in years 2 to 4. While you may be in a honeymoon period through the first year of a new client, you and your company should look to re-demonstrate a commitment to them soon after a year as part of your retention marketing and your standard client retention program.
Social media is professional tool as much as it is a social one these days. While nothing beats face-to-face interactions, having an effective online presence is one of the easiest ways to retain customers on-the-go. While LinkedIn is great for maintaining personal professional contacts, building up your Facebook and Twitter followers will help keep you up-to-date on the latest news from your clients and give you a window into what they think about your company. Social media is also a great way to announce some of your company and personal milestones, and it will make your clients feel connected to your business. When you can’t engage in person, you can still stay connected in the high-tech world, and it couldn’t be easier.