What Is Your Client Retention Strategy?

In business, regardless of size or scale, there is no greater feeling than when you land a new client. The thrill of the close can send you into this heavenly euphoria. Maybe you had been pursuing them for months, maybe even years. However, in these days of staggering labor shortages and general economic malaise, something that should be equally as feted as the new business we acquire is the old business we have managed to keep. Research data continually shows the sobering statistics in favor of client retention. It costs up to seven times more to acquire a new customer than to retain an old one. 65% of a company’s business comes from existing customers, and loyal customers spend 67% more than new ones (Source: Markin Blog). The general ideology is that the formula for retention from the clients’ point of view is one-part perceived value for the money, one-part emotional commitment to the brand, and a sprinkling of the 3 Rs of their intention: to repurchase, recommend, and/or remain with your company. Take, for example, my industry of expertise: private security. Our ability to grow consistently over the past 20 years has stemmed largely from our existing clients’ own internal growth as well as their referrals. There exists the myth that you only need one retention strategy, but the reality is that no two clients are ever alike. That is why staying abreast of changes within, innovations, consumer trends, and socioeconomic issues within their specified fields is paramount. This is achieved by regularly exercising traits such as trust, active listening, and clear and open communication with my clients; these have been the pillars upon which we have been able to build a solid base of customer loyalty. TRUST This is the foundation of any relationship. Once compromised, it doesn’t stand a chance. When issues and disagreements do inevitably arise, it is how you handle these issues that becomes the standard by which you will be measured later. Keep calm and remain professional. Always be forthcoming with the information and facts that you have at your disposal. Own up to whatever shortcomings occurred that resulted in the issue at hand. Do not make excuses and

What Is Your avoid obfuscation. Always own up to your role and communicate with the client Client Retention the steps you’re taking to not only remedy the situation, but to also ensure that the solutions in place will serve

Strategy? to curtail future issues. PERCEPTION First-rate listening skills in  By Miranda Legaspi, MBA any relationship are also key. I find this to be the hardest skill to master because when I’m excited to engage with our clients, I will nearly talk their ears off as the saying goes but listening to what clients are saying and subsequently understanding what they need or what their expectations are will be an instant win for you as the service provider. You will be able to deliver and ideally exceed their expectations. COMMUNICATION

It costs up to seven times more to acquire a new The benefits of an open customer than to retain an old one. 65% of a dialogue with your clients should never be company’s business comes from existing customers, underestimated. Clear and and loyal customers spend 67% more than new ones. consistent communication not only allows you to stay (Source: Markin Blog) ahead or in front of any issue that may arise, but it also lets them know how your team is prepared to respond. This will help put your client at ease, and when they are at ease there is peace which is priceless. Miranda Legaspi is the Director of Business Development at Platinum Security, Inc., a company with more than 20 years of experience providing security services in California, Colorado, Nevada, New York, and Texas. She can be reached at mlegaspi@platinumsecurity.com.