Call it what you want, customer churn, client attrition, defection, turnover, the terms are endless, the meaning, only one: a client dumped you. Even the largest agencies have been fired by clients after availing years of loyal service, and it’s the client’s privilege to do so.
In business jargon, client churn is when existing customers stop doing business with you. As any agency owner knows, this can depend on a variety of factors. For serious reasons or measly, a client holds the power to kick you off the job as an agency. That is not to say you allow it, it just goes to show how hard this particular battle is going to be.
Image credit: Odysseus Circe Met 41.83
Conventional wisdom has always dictated that it costs five to seven times more to convert a client than to retain a client already in the saddle. Even if we disregard the number as being inaccurate for the agency business, the concept cuts across every business model. Customer retention marketing is all about ensuring you have systems in place to ensure your clients are satisfied with the agency they have.
It is only in an ideal world that an agency will have zero client churn. No matter how excellent a service or product you provide, it is an inevitability of business that you will lose customers. But as is the way of entrepreneurs, it won’t deter you from trying to retain every one of them. So here are a few pointers that will hold you in good stead as you find a way to win this battle.
First Impressions Are the Strongest
Blow your customers away in that first pitch. Make it nigh impossible for them to even think about shopping around once they have seen what you have on offer. The first five minutes of your customer seeing you and your product, or service, are crucial to gauging if he is interested or not.
If you know the kind of customer you are pitching to, tweak the pitch according to their specific requirements. Give him the proverbial offer that “he can’t refuse.” If you manage to impress the client in the first five minutes you are generally ensured of retaining him for a long time.
Always Exceed Expectations but Never Oversell
The adage, undersell and over-deliver, holds great and potent truths for the agency business. Most entrepreneurs are so excited at landing a new account that they often forget to account for resources when setting expectations with a client. This leads the client to expect something the entrepreneur can hardly provide, leading to friction and in cases, attrition.
Consistently promise only that which you can deliver. Nothing then stops you to do the utmost, go a step ahead and give him the value that ensures your agency is retained. Always staying on top of the resources available is crucial to ensure that the agency doesn’t bite off more than it can chew. Over-selling your product or service might get a client hooked, but retaining him will become a chore you want to avoid.
Provide Top-Shelf Customer Service
Make sure that your customers are being given top priority. Having a strong client servicing team, which knows the value of the clients’ time, is essential to any organization. But what is even more important is to pre-empt the needs of the client.
The thing to understand about client servicing, is that splurging on a $100-lunch is a far bigger contributor to client retention than advertising worth thousands of dollars. Make your client feel special, understand his organization’s needs and tailor your services to them. There is nothing like providing too much service, provided you know you will be able to deliver.
Listen to the Demands of Your Clients
Sometimes there will be aspects to your business that a client will be able to understand far better than you ever will. Do not labor under the impression that you know everything there is to know about your business. Listen to the demands of your clients, because the solutions to your client retention problems may lie in those demands.
Understand their concerns and make it a priority to remedy them. Your employees are your best resource to pre-empt your clients’ demands, so keep them engaged in the process of bettering your services. If the employees are up-to-date with what the client wants, it is half the battle won.
Make Speed Secondary to Quality
Delivering the project on time is important. Ensuring that the quality of what you do is not compromised in the process, even more so. Your agency will be known for its work first, and then, maybe, the client roster it boasts of. Anyone worth his salt in the industry would know the path to advertising glory is not laid with sub-par quality.
Make your clients fall in love with your quality. Understand the speed of your team, and while you keep encouraging them to better it, keep the clients’ expectations realistic. Your team will love you, and more importantly your transparency will earn you the respect and loyalty of your clients.
Surprise Them
An agency is all about giving creative ideas, so why should the process stop when you have already netted one? Give your client a surprise idea for a campaign or a low-cost marketing maneuver. Go above and beyond the call of duty in impressing your client, but understand one thing clearly – you can only do so provided you know how far you can stretch your resources.
A good idea would be to discuss your pitch with your team. This can lead to some interesting ideas while keeping them engaged.
Timely communication with the client as well as employees, is crucial in ensuring you are on the same page as your client. For a new business owner, every client will feel like a priority. Sit back and make an objective assessment of how much each client is worth to you, in reality and in potential. Allow the numbers to make the decision for you instead of going all out for everyone.
There are always going to be clients who will simply not understand the ideas you are pitching them, or clients with whom you just cannot communicate. This goes to say that client attrition is a natural process. Do not let your guard drop just because a client has dumped you; learn, let go, and keep doing business.
