Making Sure Your Clients Stick Around
Posted by
Matt Fitts on Mon, Mar 15, 2024 @ 04:23 PM
Over the past few weeks I have been asked a number of times by my boss - "so what is the story with ABC client and renewal?"
For anyone with clients of their own, you know that is a question that can cause a high level of anxiety as you begin to remember that, yes, in fact, contracts DO expire.
I am not going to say that what I am going to share is going to lead to 100% customer retention, but it is a roadmap/checklist that I make sure I have a handle on as I embark on running a program for a client, and a list that I check in on a regular basis over the course of the program.
You might say, "well, the easiest way to retain a client is to make sure you are exceeding there goals on a weekly/monthly basis." This is very true - but I believe there are a few other items that can assist in the retention process.
Below is a list of 4 items that I believe lead to a greater likelihood of a client sticking around! (Outside of factors that you can not control that is - e.g. Client goes out of business, etc)
1. Clearly defined expectations of the engagement (from both sides)
2. Open lines of communication throughout the process
3. Transparency into the process
4. Refinement of the process for increased levels of success
I think the list is pretty straightforward but to expand a bit on one of these and perhaps the most important and why I have it listed first on the list - clearly defined expectations of the engagement. One of the most long-term, productive and mutually beneficial client engagements I have had, is one where both the client and I sat down and not only outlined how success would be measured, but also how we like to communicate and the types of things that are important to communicate about. These parameters were all established in order for us to achieve the goals of our relationship (e.g. generating sales opportunities that result in forecastable revenue with a high conversion to close) - after all we are all in the business of being successful!
Here is another way to look at it, if I am selling you a bottle of wine in a store and you ask me for a recommendation - and I ask you what you are looking for - you state "a red wine" - and I proceed with "here is a red wine that will knock your socks off" - and the transaction is done. What do you think the likelihood is that you are completely satisfied with the bottle I recomended? Maybe I get lucky and it was a perfect match, but more than likely it served its purpose but you will not drive back out of your way to get another recommendation from me.
This could have been much more of a win-win for both of us if we took a brief moment to expand on our goals and expectations for the purchase. For example I could have recommended a bottle of wine by matching it specifically to what you were eating or the price range you were looking to spend...a good match...and chances are you would drive back to see me the next time you needed a bottle of wine!
Second and third on the list, are to make sure that the lines of communication are always open in both directions and that the process is extremely transparent to your client so that you are in touch with just how one another are viewing the success/failure of the program.
The final item on the list is to make sure you are not afraid to refine the process to ensure you are continuing to strive for higher levels of success for your clients.
As I said above this list is not the magic answer to 100% customer retention but it is a list that will keep everyone involved in the relationship on the same page and in the end lead to a more successful and long term engagement.
As we all know - keeping a customer is less costly than acquiring a new one!
How do you view customer retention? Please share your thoughts.