Client Retention

Most companies view client retention as a function of sales, operations, and support. Seldom do they consider the impact marketing efforts can have on the customer retention process. Common misunderstandings:

  • “If I can get enough of the right customers I will be successful.”
  • “Marketing’s job is to find and attract new customers. “
  • “Once the sale closes, marketing’s job is done.”

Each of these statements is a partial truth. A certain quantity of customers is necessary for any company to succeed. A good marketing plan can help you attract those customers. Successful sales are sometimes a good indication of strong marketing performance. However, these statements are slightly misguided. A good marketing plan considers the company’s pre and post sales marketing presence. This focus is applied to help you attract and maintain the right customers.

“Acquiring” the right customers:

Depending on the industry, acquiring new customers can cost 4 to 6 times as much as retaining existing customers. The best target audience for any company is its existing customer base. You have invested in attracting these customers. They have experience with you products or services. They are typically willing to tell you what they liked or didn’t like about the experience(s). You can succeed by attracting the right customers. But if you first focus on the right customers you have already attracted your successes will be more profitable and more rewarding for you and your customers.

Marketing’s role with existing customers after the sale closes:

In this market the base of customers capable of making buying decisions is dwindling. In a strong market, companies lose customers at a pace of 10% per year. In today’s market companies and consumers alike continue to cut their expense budgets. This market upset has pushed client loss rates into the 40% and 50% range. To compensate for client losses your competitors have adopted marketing plans aimed at wooing your existing customers.

The same tactics and techniques used by marketers during the customer acquisition process can mold and shape the impressions of your existing customers. When properly applied, marketing efforts that target your existing customers will have three powerful effects. First, it will reassure/remind the customer that it was a wise decision to purchase your products or services. Second, your marketing material will solidify the customer relationship and protect your customer base from your competitor’s solicitations. Third and most importantly, your existing customers are more likely to respond to you marketing material. This means that when properly applied, client retention focused materials will increase sales revenue for a fraction of the investment.

Examples of customer retention marketing:

  • Regular circulars or newsletters are a great platform for reaching for your existing customers.
  • Focused promotions or special offers only available to existing customers are another great way to preserve the customer relationship.
  • Surprisingly, post mortem reviews with ex-customers are another excellent tool. These conversations can help you shape your brand. They also re-engage the customer, preparing them for a second chance sale.

Score Consulting and Client Retention:

Score Consulting has a deep understanding of the current market and its impact on your customer base. We have coached several clients through client retention and customer base management programs. If you are ready to preserve your client base and increase your sales with the same marketing effort, contact Score Consulting and we will guide you through the turbulent market.

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