GIVEN that it’s far more expensive to find new clients than retain existing ones, marketing consultants are frequently astonished at how many companies take their clients for granted, or fail to maximize revenues from these key relationships.
One such consultant is Bruce W. Marcus, one of North America’s leading law firm and professional services marketing specialists.
“Some firms have full-scale client retention programs, some simply have a philosophy about clients, but others don't seem to grasp the dynamic of client service,” says Marcus, author of 15 books, including Competing for Clients and Client at the Core (see image below, right).
He adds: “Ask your clients how many times they've been approached by your competitors, and pursued aggressively, and then ask yourself if you can continue to be sanguine about keeping your clients happy, on a day-by-day basis.
“Successful professionals are those who've learned the difference between client relations and client service. Both are important, but one is not the substitute for the other. In client retention, you have to have both.”
Marcus’s advice goes beyond client-management basics, such as doing great work, being responsive and polite, and meeting agreed deadlines. These are the so-called hygiene factors – it’s what the client is paying for; you get no credit for doing them, but lose clients for not doing them.
He urges providers of professional services to embrace the following areas if they are to enjoy high client retention rates:
Become immersed in a client's business and industry.
It may help you seek new ways in which other of your services can help the client.
Frequent contact points, beyond engagement.
The client should know you exist between contracts, between matters, between consultations.
“You help both the client and yourself when you send a brochure on a subject of mutual interest, or a copy of a clipping in which you've been quoted on a subject the client might care about,” explains Marcus. “Or a simple newsletter, either your own or one of the excellent packaged ones, covering information of interest or concern to the client.”
Maintain personal relationships.
“Not just drinking and dining to keep the client happy,” emphasizes Marcus, “but establishing and reinforcing a sense of mutual understanding and trust. The degree to which the client calls on you for business advice is as much a matter of personal trust as it is professional trust.”
Quality control systems that are visible to clients
“You may have your internal quality control systems, but if the client doesn't know that, then the client has no reason to believe they exist,” warns Marcus. “More importantly, the quality control systems should relate to the client's business, not yours.”
Regular client surveys
“Anybody who doesn't take active steps to keep aware of client attitudes toward the firm is somebody who likes surprises,” says Marcus.
He concludes: “Those who are most successful at client retention are those who actively work at it. They have programs and checklists. Even small firms that are aware of the need for it have programs that focus on paying attention. They listen. They contact. They understand the economics, and know what kind of return they're getting on their investment in it.”
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11 Oct 2009
Planet Client is the only online editorial resource dedicated to giving small to medium sized enterprises a deeper understanding of how to win clients, retain clients and understand clients.
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