Five tips to help you keep clients.
Written by Brad | JUNE, 2017 | Reading time = 2m25s.
The importance of client retention is no secret. Not only is client retention essential to building a sustainable and successful business, but high retention rates generally equate to loyalty. And a loyal client will do a far better job attracting new leads to your business than any stand-alone marketing campaign ever will.
Just how important is client retention? According to a study by the Harvard Business School (reference), increasing client retention rates by just five percent will increase overall business profits by 25 to 95 percent.
Think of each client relationship you have as just that, a relationship. Strong relationships require constant attention and nurturing. Truth be told, the future of your business depends entirely on your ability to build relationships. Here’s five tips to help.
1. Stand for something, communicate it well, invoke client motivation
It’s impossible to create a loyal client if they aren’t paying any attention to you. It’s even harder if they don’t respect you. You are offering a product or service which is promising a healthier life. Practice what you preach. Live the lifestyle you are encouraging. We all make mistakes and most of us each shit food or practice unhealthy habits from time to time. Be authentic and honest, but live and communicate a healthy lifestyle, leveraging the product or service you are offering. If you post an image of a 530am run, to some this will seem like boasting, but this will motivate your clients and generate respect on a deeper level.
2. Be a clever salesperson
Whether you like it or not, building a strong relationship with your client will eventually require you selling to them. This job is going to be much easier if you present more expensive, higher tier memberships or products within your business as if they were the obvious choice. According to economic neuroscientists (reference), more than a quarter of your clients will be ‘conservative spenders’. Reframing the way you upsell clients with language and personalisation, and reducing friction, will make a world of difference. Which sounds better?
Offer One: ‘Hi, did you know you can sign up for a direct debit membership $50/Month?
Offer Two: ‘Hi James, we’ve noticed you’ve been attending on average 2-3 classes per week which adds up to around $90/Month. Did you know our membership entitles you to unlimited classes for just $50/Month? We’d love to offer you a trial at the membership. Pay just $50 for the month and visit unlimited times with no contract.
3. Respect the power of reciprocity. Get creative
Giving out to your client may appear costly, but it doesn’t need to be. And even if it is costly, it is likely to come back to you two-fold. If someone gives you an unexpected gift, you are likely to repay that gift with interest. It’s human nature. Let’s imagine one day you take a few of your clients out after a class and shout them all a smoothie. It might cost you 50 bucks. But imagine if just a few of those clients post about this on social media (they will) and tell their friends and work colleagues. Not only have you increased the loyalty of the individual client, but you’ve also just attracted a number of new clients to your business. Get creative.
4. Personalise, personalise, personalise
Each of your clients will be at their own unique stage of the relationship. While no client will openly demand it, they are seeking a personal connection with your business, your brand, and you. Creating value and finding an individual connection with a client requires attentiveness, boldness and commitment. Check out this article on finding your client’s ‘something else’.
5. Reward your loyal clients
If you don’t have a loyalty reward system in place, make it your next business move. You first need to determine what a loyal client looks like. Detail their purchasing behaviour, transaction frequency, interactions with your business, referrals they provide, reviews they leave etc. Loyalty program and reward system sound a little mundane, so come up with something more creative. You really don’t even need a name for it. When a client has attended ‘x’ amount of classes give them a surprise free week. When clients have spent ‘x’ amount of money with your business, invite them to a free weekly outdoor class.
SHOUT OUT: This was inspired by an article written by Greg Ciotti from Convince & Convert. They produce a heap of useful information and run regular webinars. Definitely worth checking out if you have time. Click here to visit the site.