Statistics indicate that 50% less energy is required to sell a new product or service to an existing client than that required to sell to a new client. The acquisition of new clients represents five times the cost of retaining an existing client. Therefore, client retention is a prime objective for the business owner. Client retention is a true barometer to measure potential business growth.
Like most business owners, you invested a great deal of time, money and energy into the acquisition of that first client. Remember how excited and rewarded it felt when you landed the client you worked so hard to close? Or how about the first referral you received? Did you feel like your efforts have finally been validated? There are few feelings in business more empowering than receiving a referral from a client or an associate. Retaining clients who provide referrals is critical to business growth and success.
To maximize referrals from existing clients, you as the business owner must develop an effective Client Retention Strategy. A well-planned, clear and concise Client Retention Strategy is worth the effort and will yield immediate results.
An effective Client Retention Strategy will help keep your client prospect funnel full, all by referrals. How is this achieved? Simply communicate with your clients. Let them know you care about them and their relationship with you and that you will be there for them as life evolves. You appreciate their business… let them know!
Think back to the last time you referred someone to a professional associate. What criteria did you use to make that referral?
- The service was professional and effective
- They demonstrated a desire to maintain a mutually satisfying relationship
- They demonstrated a caring approach
- They shared something memorable with you
Now, look at ways you can duplicate these best practices in your business.
Life is a collection of moments,
gather as many of the good ones as you can.