5 Facts You Need to Know About Client Retention

It can be disheartening when you notice more of your clients are deciding to cancel their services or switch to a competitor— especially if you’re business is new or it’s your first time experiencing such a high churn rate and client retention is a struggle.

I’ve sat with several concerned entrepreneurs over the years who were in the midst of this situation. Their client retention strategy was failing. They were being edged out by their competition. They wanted to close the loop before it was too late.

In each meeting, the business owner sitting across from me wanted to know one thing: The secret to client retention.

And of course, as an Operations Coachsultant™, I wanted to reveal it.

Unfortunately, there is where I’d have to ask the age-old question: “Do you want the good news? Or the bad?”.

The Bad News About Client Retention

Client retention isn’t a white rabbit that entrepreneurs can simply pull out of a magic hat.

It’s a strategy that takes time to build and optimize.

Even with an operations expert on your side, there’s no such thing as a quick fix.

As much as I’d love to be a magician and fix problems in the snap of a finger, it just isn’t possible.

The Good News About Client Retention

You CAN shift from struggling to strategic. You CAN start building a long-lasting, loyal customer base. And you CAN solidify each component of your customer experience.

But first, you need to know the facts.

The Facts to Consider Before Refreshing Your Client Retention Strategy

1.64 per cent of the consumers who say they are loyal to a business cited shared values as the primary reason for their commitment to the brand. (Source)

This is one of the most powerful client retention stats I’ve found— and one I share with my own clients often. It’s the perfect reminder than if you want to start creating brand loyalty, you have to show your clients the values by which your business operates.

And, most importantly, you have to ensure clients are reminded of these values throughout their client experience.

You may want to begin the process of fine-tuning your client retention strategy by asking yourself how your company demonstrates its mission, vision, and values to clients.

2. 57 per cent of customers won’t recommend a business with a poorly designed mobile website. (Source)

Overlooking how convenient it is for clients to interact with your website from a mobile device is a major faux pas. But it’s not just about your website— it’s about how accessible your services are in general.

Can your clients text or chat with you? Or do you only make yourself available via e-mail and phone calls?

Do you use online collaboration tools like Samepage or G Suite to allow clients to access documents and tasks related to their projects?

The more seamless it is for your customers to engage with you and access the information they require, the greater your client satisfaction rates will be. For this reason, I highly encourage evaluating the design, user experience, and convenience of your websites, communication tools, apps, and other platforms.

3. Only 34 per cent of companies are implementing customer journey mapping into their customer service. (Source)

I’m a HUGE advocate of customer journey mapping. Without it, it’s so much more difficult to identify gaps in your client experience. The result? You end up relying on customer complaints to identify where and when an issue occured— NOT an ideal strategy (to say the least).

I have implemented customer journey mapping in my own business and it was a significant factor in how I was able to build my own loyal client base.

But don’t just take it from me.

We are talking about facts, after all. So instead, consider this:

Companies with a formal customer mapping strategy bring in 350% MORE REVENUE from customer referrals!

4. 33 per cent of customers who abandoned a business relationship last year did so because personalization was lacking. (Source)

Personalized customer service is a must if you’re looking to reduce your churn rate and satisfy clients. The only way to build authentic, reciprocal, loyal relationships with your clients is to deliver services that are customized to their unique, individual needs.

If every client is getting the same generic, run-of-the-mill messaging from your business, they’ll soon start to feel like another number, rather than a valued and prioritized customer.

But what I love about personalization is that a little really does go a long way. Small adjustments like replacing “Dear customer” with the first name of your subscriber in email marketing campaigns, or sending tailored monthly project updates to each of your clients, can make them feel appreciated and well cared for— which is always great for brand loyalty and customer retention.

5. 68 per cent of consumers say it increases their perception of a brand when companies send them proactive customer service notifications. (Source)

How often do you reach out to your clients first? How often do you check in, not because there’s an issue, but because you sincerely want to know how their experience has been? Or because you want to offer them additional value with no strings attached?

I think this has been a weak point for every entrepreneur at some point in the development of their business. We become so immersed in the day-to-day hustle that we forget to come up for air and provide our clients with the forward-looking, preemptive service they deserve.

For this reason, I highly encourage CEOs and business owners to make proactive customer service a focal point in their client retention strategy. Otherwise, customers will begin to grow tired of constantly reaching out and probing you for the answers, information, or service they need.

If you have been wondering how to retain clients more effectively, keeping these stats top of mind is a fantastic first step.

Ready to know what comes next?

WATCH MY LATEST YOUTUBE VIDEO ON FIXING CLIENT CHURN (FOR GOOD)

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