Client retention doesn’t happen by chance; it needs a well-thought-out plan.

our company is running smoothly; your people work hard, clients are satisfied, and you regularly bring in new business. So, everything under control, you might say? Yet you lose a few clients every year. Not because they are particularly dissatisfied but because they switch to a competitor, bring things in-house, or do not see sufficient value in your services when budgets are under pressure. Recognisable scenario?

Client satisfaction is not client retention.

There is a big difference between client satisfaction and client retention. Or, to put it even more strongly, client satisfaction does not automatically lead to loyalty. Clients can say they are happy with your service and still decide not to stay with you. This often comes as a surprise; it knocks your confidence and causes confusion, anxiety and maybe even demotivation in your team.

It is no surprise that dissatisfied clients eventually leave. As a company, you have to offer quality and consistency and ensure that your clients are satisfied to even stay in the game. Nevertheless, you don’t want just “survive”, you want to thrive and grow, right? The key to that is client retention. If clients want to stay with you, preferably forever, that is what will deliver sustainable profitability and shareholder value. So, you need to take it seriously.

Why client retention is so important?

Client loss or churn is always really expensive. For many companies, it costs 5 to 8 times as much to sign a new client than to retain an existing one.

Moreover, recruiting new clients and getting them up to speed requires a lot of time, money and energy. Yet, we still see that many companies invest heavily in business development and pay too little attention to their current client base. A missed opportunity because client retention is a “game-changer”.

Clients who stay do not leave a gap that needs to be filled by new clients. If you retain all your clients, every new client represents growth. By ensuring that clients stay longer, step by step, your profit will grow. Just as interest on interest grows your wealth, client retention provides a foundation that makes your business stronger every year. So, how do you achieve maximal client retention for your business?

A client retention plan

It won't happen automatically, that's for sure. If you want clients to stay with you, you need a structured plan of action. Successful companies that know how to retain clients have got a few important things right:

·      A clear process for understanding what the client expects, prioritising and recording this.

·      The right people at the table to maintain great relationships, both personally and professionally.

·      Deliver value relevant to the client's future, time and time again.

·      Dealing intelligently with changes in the team, both within the client and your own company.

·      Learn from the best within your business and pass on this knowledge to new staff.

·      Measure its costs and yields to see how much you gain by retaining your clients for longer.

A business that invests in client retention sees that profit increases with every per cent increase in client retention. Indeed, client retention doesn’t just improve your bottom line. It also strengthens your reputation, makes recruiting new clients easier and provides confidence and positivity in your team. In short, if you invest in client retention, you are taking the most effective step for long-term success and growth.