7 Simple Client Retention Strategies

Reciprocity Principle

Studies show that winning a new client can be anywhere from 5 to 25 times more expensive than retaining an existing one.

Once you have landed a new customer, you should work hard to increase what you offer them to strengthen the relationship.

When existing clients buy more you are increasing the lifetime customer value to your business.

When you can offer more solutions to your clients’ problems, you’ll see an improvement in client retention.

Here are 7 ways to improve the value you offer your clients.

1. Take on the Client’s Problem as Your Own

By taking on your client’s problems as your own, you can build a deep and lasting relationship with them.

Communicate with your clients regularly to find out what challenges, issues, or pain they’re facing.

Make their concern YOUR concern and look for ways to solve it together.

Work these solutions into your product packages and you’ll dramatically improve client retention.

2. Custom Services That Address Every Need

Through your communications with clients, you can package your services in a way that perfectly addresses their needs.

If you offer too many options, this will make it hard for clients to buy.

Offer 2-3 options that will comprehensively solve their problems.

If you need more, offer add-on customisation.

The goal is to make sure your clients are getting their needs met when purchasing your service.

3. Keep in Touch and Follow up

Offer a service which your clients need to renew or use again on a regular basis.

Then set up an automated system for following up with them.

Remind your clients that it’s time to buy their next package.

Stay in regular communication with them after you have delivered the service.

You can get their feedback and stay on their radar.

4. Reward Client Loyalty

Show your gratitude to clients who repeatedly use your service by implementing a client loyalty program.

Offer a free service, a discount, or some other exclusive perk to say thanks.

Be transparent about your customer loyalty program and let them know ahead of time so they have a reason to stay with you.

5. “Wow” Your Clients

In addition to rewarding your clients predictably with a clearly stated loyalty program, you can also “wow” your clients by surprising them and exceeding expectations.

For example, occasionally throw in some extra service for free.

This produces a powerful psychological effect.

It is called The Reciprocity Principle and was best explained by Dr. Robert Cialdini in his book Influence: The Psychology of Persuasion

But the concept of reciprocity has been around for millions of years.

Reciprocity is a behavioural pattern that has helped human survive and thrive.

You may know it as ‘I’ll scratch your back if you scratch mine.’

If possible, give your clients something that is rarely given by other businesses.

When you give your customers something extra and unexpected, they will feel indebted to you.

The impact will stay with your clients and help you build a strong relationship with them.

6. Find out Why Some Clients Leave

It’s inevitable that you will lose clients sometimes.

When this happens, it’s an excellent opportunity to make improvements to your services so it doesn’t happen again.

Contact those clients who decide to quit and ask them why.

Also ask them what improvements they’d like to see you make in the packages you offer.

Use this feedback to make improvements and refine your services.

Then ask them if they’d come back once you have made those changes.

7. Give Your Clients the Right Options

Client retention starts with offering the right solutions that they’re looking for.

Start by designing a limited number of packages that each offer a unique value to the customer.

Refine and use your marketing to communicate how your packages work.

The best retention strategy is to have satisfied clients who are getting their needs met with no fuss or bother.

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Written by 

Co-Founder & CEO of Link Management Group. An Investor & Coach to Small Business Owners, for the past 30 years I have helped startup and early-stage businesses to enter new markets and achieve sustainable growth of both revenue and profits. I have experience across a diverse range of sectors including central government, information services, software, health insurance, pet products, couture fashion, entertainment and aviation.  How can I help your organisation accelerate growth and achieve its full potential? 

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