According to a study conducted by Invesp, acquiring a new customer can cost up to five times more than simply retaining an existing customer. Furthermore, studies show that increasing your customer retention rate by a mere 5% can increase profits by anywhere from 25% to 95%.
These facts alone should be enough to convince you to invest in your client retention strategy. If not, we will further explore the benefits of client retention in this article, as well as some proven strategies to keep your existing clients coming back.
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Why Repeat Clients Are Important
As mentioned above, client retention can prove extremely profitable for a business. Not only can it save costs, but it can also increase your profits. These are not the only advantages, however; there are many more ways that repeat clients can be beneficial to you and your business.
It can be easier to get more work from existing clients than to acquire new clients. This is due to the fact that hiring a person that they have not worked with before can seem like a bigger risk for new clients.
Retaining your existing clients can result in higher revenue for your business. Repeat clients tend to spend more, and may be more likely to invest in additional products or services.
According to this study, 41% of Americans find word-of-mouth marketing more trustworthy than online recommendations. Clients that are satisfied enough to return to your services are much more likely to speak highly of you to others in their network.
Improved Client Relationships
Repeat business can help build better relationships between you and your clients. Over time, you can get to know your clients’ needs, preferences, and pain points, which can lead to a better understanding of how to serve them to the best of your ability.
A high client retention rate can give you a competitive advantage over your competitors. This is because retaining clients can demonstrate that you are providing a high level of client satisfaction, which can be a key differentiator in your industry.
How to Improve Your Client Retention
Now that you are aware of the benefits of investing in your client retention, we can take a look at some proven strategies that can help you to get your existing clients to return for more.
Try to predict your clients’ needs before they become aware of them. Lead the process, be clear about what they can expect, and update them without needing to be reminded.
Build a Relationship
While you are working with your client, try to build a solid business relationship with them. Make sure to show interest in their lives and their business, and try to find similarities between yourself and them in order to establish a better connection.
Communication is key, but prompt communication is what will set you apart from your competitors. When you receive an email or a message from your client, respond as quickly as possible. If you are unable to give them what they need that second, inform them of this and tell them you will get back to them as soon as you can.
Listen to Feedback
If a client expresses concerns about the project, take it seriously and do your best to improve upon the mistake. On the other hand, when a client praises you for doing something, take note of the compliment and try to emulate that behavior in the future. Feedback can be an incredible asset to your business, and asking for feedback from your clients can help you to improve all aspects of your business.
If you give your client a time frame for when they can expect a project to be completed, try your best to stick to that timeline. If delays arise and it is no longer possible, inform them of that as soon as possible so that they can make arrangements on their side.
Stay in Touch
After your initial work has been completed, try to stay in touch with your clients. Interact with their social media posts, congratulate them on milestones or achievements, and you can even contact them in the months following your work together to check whether they are still satisfied with the result.
If you are able to, find a way to reward your returning clients for their loyalty. You can do this by offering discounts for repeat services, or even offering a free addition to your service such as a complimentary audit of their website if you are an SEO specialist. You can also incentivize referrals, and offer a discount when they successfully refer another client to you.
Client retention can be a crucial factor in the long-term success of any business. Retaining your existing clients can save costs, increase your revenue, build client loyalty and advocacy, and even help you to gain a competitive advantage.
By implementing some of the client retention strategies outlined in this article, you can keep your clients coming back and establish a solid foundation for your business’s growth and success. Investing in client retention is not only beneficial for your business, but it can also create a positive impact on your clients, leading to better client satisfaction and an improved reputation in your industry.