Do you focus more upon acquiring or retaining clients?
Research shows that your profits can grow as much as 100% from a 10% increase in client retention. Still, every year U.S. businesses lose from 10% to 30% of their customers, 82% of whom could be held onto given more responsive attitudes and an obsession for making things right!
Have you tried to achieve or sustain double-digit growth when you have to replace 20% of your client base every year? No thank you; I don't want the job!
Play for keeps with your clients. Here's how:
With the average cost of landing a new client five to seven times more expensive than retaining a current one, share of client - not of share of market - rules. It's a groundbreaking idea from consultants Don Peppers and Martha Rogers, Ph.D. Dig deep. It's cheaper and easier to sell more to existing clients than it is to win new ones. What's your share of client?
All business relationships are personal, and no relationship is static. Seize every chance to learn about your clients' realities, to communicate and to reinforce the reasons clients chose your firm in the first place. Yes, you do get a second chance to make a first impression. And a third. And a fourth. You get that opportunity with every visit, letter, proposal, phone call, email and fax!
People do business with people, not companies. As a partner in your firm, pay non-selling visits to your clients at least twice a year. Permit an associate to become the sole or principal point of contact, and you risk losing the client if you lose the associate. Ensure carry-forward by assigning another "go to" person for every account. Or, assume the role yourself! Focus upon the few clients who drive the majority of your revenues. However, be sure not to overlook smaller, high-potential outfits. Be there for them now, and they'll be there for you forever!
Build organizational allies deeply and broadly. In cultivating relationships, don't neglect to acknowledge junior associates and other staffers. One in four people change jobs or companies every year. The junior associate just could be sitting in the decision-maker's chair next year or be in a position to influence a newcomer's choices of suppliers. Interact often with your clients' people. Nobody owns a client; you own relationships!
Meeting clients' expectations is your price of admission into today's market. The question to ask is "how can we exceed expectations to the extent we create commitment, or loyalty, on clients' parts?" Technology, competition and choices have installed buyers permanently in the drivers' seats. Expect to lose business if you continue to meet clients' needs. Instead, discover and deliver what clients want!
