Do You Know These 3 Important Facts About Client Retention?
A proper client retention strategy works by finding ways to keep existing customers engaged in your business. You might be thinking “Why is client retention so important to my business strategy?” Here are three facts you might not know about client retention.
It is far more expensive to acquire new clients than to retain your current ones
It costs 5 times more to acquire a new client than it does to retain a current one. Many companies focus all of their time, energy, and money into acquiring new business, without realizing that it is much more profitable to work to retain current clients. Research states that 68% of clients leave their business due to poor customer service. Many of these clients choose to leave because they feel that the company is indifferent to them. Just by making your clients feel noticed and appreciated a few times a year, you could see a huge influx in customer retention.
Your current clients are more likely to spend more money than new clients
It can be challenging to explain your business, services, and features to a new client. But luckily, your current clients are already familiar with and understand the basis of your company.
They are the perfect audience to receive pitches for new products and different service offerings. It is advantageous to concentrate on boosting your relationship with your current clients. These customers have already found a reason to like your services and to want to continue their relationship with you.
Current clients can provide priceless referrals
Your current clients have chosen you for a reason. There is something they admire about your services, the quality, or the customer service experience that you deliver. So, why not tap into this? If you give your current clients a little extra appreciation, they might be the first ones to tell their colleagues or friends about the exemplary service you provide.
Research shows that consumers are 90% more likely to trust a brand if it has been recommended by a friend. This shows that by delivering a little extra appreciation to your current clients, not only are you keeping them on board, but you are also working to acquire their friends and colleagues.
Having a strong client retention strategy can truly boost firm’s growth. Many companies feel that they don’t have the time to consistently show their clients the appreciation they deserve. If this sounds familiar, consider reaching out to a company like Client Porter, who creates personalized turn-key client appreciation programs for your clients.
