h s e r f e R When you received Jerry Peterson’s call this morning, you were stunned. He’s been a client and friend for years, but he was letting you know he’s moved his business to a competitor’s agency. No hard feelings, you understand.1 Your first reaction may be anger toward the competitor, or even Jerry, but it’s more likely you should blame the face in the mirror. When you lose a client, you may not have done anything wrong. You just didn’t do anything to outwardly convince them you wanted to keep their business. If current clients feel neglected and one of your competitors makes them feel wanted, they may switch. Losing a client hurts your ego, but it has a bigger impact on your agency than you may realize. Experts know that it costs six times more to pick up a new piece of business than it does to gain additional business from existing clients. That makes sense, because you don’t have to spend time educating existing clients about who you are and what you can do. What’s more concerning, though, is that 64 percent of customers who don’t buy from businesses again do so because of what they perceive as indifferent treatment. 2 That’s why it’s so important to make deliberate efforts to re-engage with your clients regularly, so they know you value their business. For many businesses, one approach at staying connected was inviting key clients out for a round of golf. But as the demographics of your client base change, that’s not always the best approach. With an activity such as golf, you may be missing out on building relationships with non-golfing clients who probably represent an increasing share of your book of business. One of the most effective ways to maintain and strengthen client relationships is to show your appreciation by delighting them in unexpected ways. Keep in mind that what delights you may not be what’s meaningful to your clients, so you may want to talk to other people in similar demographic groups for ideas. Among the ideas you might consider are: • Giving a meaningful gift. (Avoid items such as alcohol, flowers, or anything with a religious or political slant.) 3
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• Inviting them to lunch or dinner at a restaurant they like. You (or your staff) can learn about their favorites through casual conversations. 4 Perhaps you can tie it to their birthday month. You would be surprised at the number of people who are not remembered on their birthdays. • Donating to a charity or other organization that’s important to them (in their honor). 5 • Scheduling a free workshop with an expert on a topic like estate planning for a small group of clients. 6 • Sending a copy of a favorite book you’ve read, with a personalized note. 7 • Planting a tree in their name through a group like the Arbor Day Foundation. 8 Don’t feel obligated to tie your contact efforts to a certain time of year, such as policy renewals or holidays. The efforts that have the greatest impact are those that are unexpected. Think of how you feel when you receive something nice that you weren’t expecting and work to create that same feeling among your clients. 9 Re-engaging with your clients is easy, and it’s hard to think of other efforts that offer as much of a return on your investment. Best of all, you’ll get fewer of those surprise phone calls from departing clients. Footnotes 1 This story and name are merely fictitious. No identification with an actual persons or situation is intended or should be inferred. 2 “Go On; Spoil Your Customers,” advice4business.com, July 21, 2014. 3 “How to Gift and Spoil Your Clients,” showit.co, undated. 4 Wayshak, Marc, “9 Tricks to Re-Engage Your Customers for Better Retention,” hubspot.com, undated. 5 Parker, Tim, “24 Ways to Thank Your Customers and Employees,” quickbooks.com, undated. 6 ibid. 7 Wayshak, op. cit. 8 Parker, op. cit. 9 showit.co, op. cit. 8 4 4 - 3 4 3 - 1 3 2 7 • w w w.o akst reet f u n d i ng .c om | 13
