Looking for a way to boost your bottom line? Taking steps to reduce client churn – account turnover – can help. Maintaining a strong relationship with existing clients and past clients offers an opportunity to improve efficiency and revenues.
Client churn or loss of customers can be a critical situation for any business. When you face turnover from even a small percentage of clients, it can reduce your revenue and tie up valuable resources as you try to recover. It can also affect your reputation.
Fortunately, by taking time to understand causes of client churn, you can figure out what causes clients to turnover – and what you can do about it.
Trust forms the base of customer relationships. Focus on clients most likely to be a good fit. If your client feels that you are not being honest in your dealings, they may stop engaging or returning and may even start telling others to do the same. Strive to build a culture of trust with clients. Be honest, predictable and reliable.
Set client expectations
Every client has individual needs, wants and expectations. By working with the client to understand their unique situation, you can help them build a vision to overcoming problems and finding solutions. As part of that, you need to position your services and products as key, without pushing anything on the client. If a client feels that there’s a lack of fit and that you’re not meeting their expectations, they won’t want to come back.
By taking the time to build relationships, you can better set client expectations. Let them know when you can and can’t help – and work with them to find solutions, even if you need to refer them to others to create a complete solution. Focus on delivering high quality services and products that align with your client’s needs and expectations. Wherever possible, under promise and over deliver.
Your current clients can amplify your brand. They not only may continue to buy – they can influence others to buy from you. Create a marketing campaign focused on your current clients. Since you’ve already done the hard work of winning them over, it should be less work to convince them to buy again than to find new clients. Remind them why they sought you out, what successes they have and how they can continue working with you. You can also create a referral program to encourage them to use word-of-mouth to market your business.
Deliver outstanding customer experiences
In the age of globalization and online services, clients can easily move to new providers. But, by building a relationship that delivers a superior customer experience, you can help retain them – and make changing providers feel like a bigger risk. Listen to each clients’ needs and encourage them to give you feedback. Rather than getting caught up in conflict, look for opportunities to meet complaints, better explain options and even cross-sell your products and services. Clients prefer to work with providers who value their input and their experiences – so set up a feedback system and a way for responding. Look for opportunities to communicate how you’re responding to feedback and continuing to innovate.
Reward loyal clients
Create loyalty programs for clients to reduce churn and turnover. While that might make you think of a little card that your local coffee shop stamps each time you buy a coffee, this concept can scale up to even Fortune 500 firms. You can offer discounts, rewards and incentives for frequency of purchase, length of relationship, referrals, variety of services and products used and more. Sometimes, even a card or email that thanks a client for their ongoing business can make a difference, without requiring you to cut your fees.
While any business will face some client churn, successful businesses look at client turnover and make plans for addressing it. What steps do you take?more »