How well does your organisation do when it comes to retaining clients - especially in tough economic times?
Since it's six times easier (and less expensive) to keep an existing client than it is to acquire a new one, this strategy is worth your attention. I had a conversation with a successful business owner who provided some very useful insight.
I was with Debra Preble who is regional director of Preble-Rish, a civil engineering firm with multiple locations throughout the South. At one point in our visit, Debra dropped a 'bombshell' that stopped me in my tracks. Since 1991 her company has never lost a client. Want to learn more? Debra says it's all about relationships - she employs a programme of regular personal contact. In addition - and I thought this very proactive - she prepares for change. In other words, over the years people come and go from the businesses she serves.
To maintain the favorable relationship, she gets out in front of changes before they occur, constantly forging new relationships. Because so much of her work is based on RFP (request for proposal) they don't participate until the relationship is good enough prior to the RFP. How's that for accountability and discipline? Another 'gem' that Debra shared was the reminder that the world is a small place. People you meet, now, you will invariably meet later, either on their up or down the ladder of success. Consequently, always keep your interactions positive. One last thing from Debra: She says honesty and integrity go a long way and, to that she adds, "Do what you say you will do and at the price".
Through my experience I want to add a few points to Debra's sage advice. First, always deliver value and, most importantly, keep score. By this I mean calculate or measure the value of your product or service to clients and let them know periodically approximately what that is worth. Next, remember that 'the little things make a big difference' - positively or negatively. Acknowledge birthdays, anniversaries, specific recognitions... and try to be the first to do this. Your clients will remember you for it. Next, seek periodic feedback from your clients and then (surprise!) act on their suggestions if appropriate. Ask them how they feel about your product or service, what you could do differently, better... Then do something about it and let them know you did it.
Another important consideration is the way you (the leader) treat your team trickles down to how the team treats your clients. Be guided accordingly. One last point for building client retention: Diligently seek to give your clients a referral of someone that is a great prospect for their business. Accomplish this once a month and you'll keep that client for life. Adopt one strategy and refine it to fit the needs of your organisation. Then move on to the next. Remember, change doesn't have to be monumental, only incremental. Small changes over time add up to big results.
News supplied by ActionCOACH Business Coaching.
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Howick High School
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