Did you know that the customer profitability rate tends to increase over the life of a retained customer?
In other words, the longer you keep a customer, the more profitable the customer becomes. Furthermore, companies can boost profits from 25 – 125% by retaining merely 5% more existing customers.
As the person responsible for new business development at BBR, I have come to value the relationships we have with existing clients, first and foremost, before the acquisition of new business. Taking care of the clients we already have is key to retention, allowing me to gain new clients for our business and layer them into our already strong base. This makes a lot more sense than having a constant rotation of clients in and out of our business. Although, on average, most businesses lose approximately 10% of customers each year, we still work hard to maintain those that are most valuable to long-term growth.
After 14 years in business, I think I’ve learned something about retention, and I’m happy to share a few Client Retention Tips:
- Honor your promise. Deliver what you promise, everytime.
- Be relevant. Know your client’s needs and be ready to offer intelligent solutions to help them meet those needs.
- Serve well. Always serve the client to the best of your ability and make sure your team is committed to doing the same.
- Care about your client’s success as much as your own. Be concerned about their industry, the plight of their business, their pressures, their challenges.
- Stay in touch. Communicate frequently.
- Be thoughtful. Remember birthdays, interests, anniversarys, children and spouses names. Write thank you notes.
- Add value — go above and beyond. Give more than was asked of you or expected from you.
- Do not take advantage of a client or their employer — ever.
- Be vigilant. Always be ready to help clients with anything they may throw your way.
- Make friends. People do business with people they like…and respect. Remember that.
- Solve problems quickly. Be accountable and apologize immediately when you need to. Do not let resentments develop.