Client Retention – Building Relationships is Critical to Keeping Clients
How often have you heard that relationship building is the key to client retention and acquisition? We know we have trouble counting the number of times we’ve read about it. Guess that means it’s important, huh?
Of course, this begs the question of how you build relationships online, as well as person-to-person.
After all, and as we’ve often claimed and continue to believe, the internet is as impersonal a place as can be imagined. By its very nature, it is completely indifferent to your wants and needs and, while it has value to all of us, we have no value at all to it.
Now that we have the metaphysics of our online world out of the way, what does all of this mean when it comes to doing business online?
The simple answer is – it is entirely up to you to learn how to build relationships with your clients and prospects as the foundation of your online marketing strategy. To do this, you will need to understand what compels them to search for solutions in such an unforgiving environment and let them know that you can be trusted to help them.
Clearly, this is no small task.
Sustain and Grow Client Relationships
Thankfully, we’ve found help for you (and us!).
In an article at Business.com, editor and author Chad Brooks keys us in on how to get this done: “The most important thing in marketing is to retain your most profitable business customers.”
While Mr. Brooks offers a dozen or so valuable ideas to help small businesses improve client retention, we will focus your attention on those we believe to be the most valuable. Our hope is that these will resonate with you and inspire you to follow the link above for more.
Continually evaluate your market and network – Research your customers’ markets, needs, and goals. Big data analysis tools should be part of your sales team’s planning. Market trends shift often, and you need to know what strategies to employ to increase shares or enter new markets. Engage customers in product development and enhancement via beta tests, focus groups, and pilot programs. Learn their business habits, purchasing patterns, and requirements for effective proactive solutions.
Use a CRM system – A Client Relationship Management system stores client and potential client data in a format that is digestible by your team. It also monitors things such as customer satisfaction and may provide overviews of sales and other metrics. Typically cloud-based, these programs help businesses organize customer relationships and facilitate interactions.
Since existing clients are your most valuable asset, it is critical to your ongoing success that you understand them on both an organic (i.e., in-person) and digital level (i.e., the metrics).
Communicate relevant information regularly and effectively – Keep in touch with existing clients with targeted emails and newsletters. Update customers on industry trends potentially affecting them and give your take on upcoming issues. Let them in on your visions for their (and your) success, and then explain your take on achieving it.
Social media is a great connector, so use it wisely to keep communication channels open. However, making a person-to-person connection means much more. Be a person, not a talking head on a website. Humanity trumps digital every time.
Be accessible and responsive – Talk and listen to customers to maintain a dialogue and build a trust-based relationship. Make it easy for customers to reach you. When they contact you, make it a point to return calls and emails promptly. Implement a customer satisfaction policy that provides a way to resolve and remedy problems and issues. Provide support, service, advice, and information. Train team members on how to manage calls efficiently and effectively so customers have their concerns addressed no matter whom they reach at your business.
Become the “Go-To” person in your market – Develop skills and knowledge that make you an authority for your customers. A reputation for expertise means the ability to provide valuable resources to clients unobtainable elsewhere, especially your knowledge. Look for ways to add value, be a real partner, and help your customers achieve results. Provide guidance even when there is little chance it will mean any immediate business gain for you. Doing so almost always pays off down the road.
Redefine your concept of who and what a client is – Clients are much more than a roster of potential purchasers of products and services. Retaining customers requires fostering long-term relationships over pursuing short-term money-making possibilities. Recast the relationship as more of an extended partnership. Then be prepared to meet client needs by adjusting your business services as necessary.
Existing Clients are More Likely to Buy Again
There’ are a few reasons we are so focused on client retention. Based on the latest market research, designers and furnishing dealers will do themselves a favor if they can devise ways to retain or reengage existing and past clients. Why?
New clients are 7x more expensive to acquire than keeping or reengaging existing or past clients.
Probability of converting an existing customer is between 60% &70%.
Probability of converting a new client is just 5% to 20%.
Repeat clients spend an average of 33% more than new clients.
Repeat clients are 60% to 70% more likely to buy an up-sell.
These are just a few of the reasons that re-engaging and working to establish customer loyalty is critical to the growth of your business.
Clearly, there is work to be done to improve the future of your business. There is also further guidance available if you choose to use it. Ted remains available for business consulting to the trade. We think he is a master at both relationships with clients and retaining them. So, feel free to… Contact him at TD Fall today..