Client Retention: Why It’s Important And How To Leverage It
Client Retention Is King. Here’s How To Leverage It
In the early stages of business, client acquisition is an essential focus for any organization. After all, the main goal initially is developing brand awareness, driving sales, and setting the foundation for continued success.
But as a business grows, these needs will change. And rather than acquiring one-time clients, businesses will begin to rely on loyal clients who have already purchased products or services from them.
Has this shift become more noticeable in your business? If so, let’s take a closer look at why client retention is so important and how you can nurture these existing relationships.
Why Is Client Retention (Sometimes) More Important Than Client Acquisition?
If you’re in a business where clients only need to purchase a product or service once every year or so, client acquisition is critical. However, most businesses aren’t built like this. Instead, many businesses offer products or services that are purchased more frequently throughout the year by clients.
In the latter scenario, it makes less sense to continue mass marketing in an effort to acquire new clients. If you already have an existing client base who love what you sell and need it regularly, they can support your business. Loyalty breeds profitability.
Of course, the numbers speak for themselves. Research shows that customer acquisition costs almost seven times more than selling to customers you’ve already acquired.
More importantly, the probability of selling to an existing customer is around 60 to 70 percent. This is a massive difference between the 5 to 20 percent probability of selling to a new customer.
But with this in mind, how can you actively cater to the needs of your existing clients and encourage them to purchase from you again? Let’s take a look at a few helpful tips to improve your client retention strategy.
How To Foster A Loyal Client Base And Boost Profits
Client retention is often easier than most businesses expect. Here are some ways to foster a loyal client base that will continue turning to your business for the products and services they need.
- Reward their loyalty: Loyal clients should feel that their loyalty is offering them benefits. Whether this means creating a reward program or offering exclusive deals and items only they can access, look for ways to reward your loyal clients.
- Add incentives to the mix: Coupons, sales, and other promotions can incentivize existing clients to return and make another purchase. Add these to your communications to keep them in the loop about incentives they can take advantage of.
- Engage them regularly: Speaking of engagement, communicating with your clients is key to client retention. Regular email outreach or updates via company newsletters can engage them, reminding them of your business and what it has to offer.
- Make it easy for them to reach you: The customer experience is the heart and soul of any business. Make it so your loyal clients can provide your business with feedback by making it easy to contact you. The better you treat them, the more they’ll support you.
Start Marketing To Your Loyal Clients With The Support Of laneMKTG
Understanding the need for client retention is simple. Marketing to your existing clients can be a bit trickier. laneMKTG is a full-service B2B marketing agency helping SMEs get optimal results from their marketing strategies.
Contact us today so we can learn how to support you in your client retention endeavors!