Does this sound familiar to you?
You work hard to chase a new prospect, set out an advice roadmap, win them over as a client, and then think “right, who’s next?”. But is this the best plan?
The Numbers Behind Retention
It costs 5 times more to acquire a new client than to retain a current one - but a loyal customer is worth more than a new one.
The likelihood of selling to an existing client is 60-70%, while there’s only a 5-20% chance of selling to a new one.
And if an existing client leaves, you’ve lost more than just revenue – you’ve lost the acquisition cost of converting them.
So how do you achieve great client retention?
It pays to know why clients leave in the first place. The vast majority leave not because of competition, or even bad products, but due to the adviser’s indifference or poor attitude.
Retention is all about customer experience. This shouldn’t be confused with customer service, which is reactive – a one-off fix to a specific problem.
Customer experience is proactive, taking the initiative, and making sure each customer touchpoint is consistently great.
Then it’s about first contact, which should be done quickly. Don’t go for the hard sell right away. Alleviate their worries about making big financial decisions, and lay out a roadmap of how they’ll be advised.
Find out from your first meeting how and when they like to be contacted, and whether they’d be open to catch ups. Some clients will like the security of you checking in, adding that personal touch. Others may find it too much. Great customer experience is all about making your advice as personalised as possible.
And after the initial meetings, how do you maintain your brand awareness amongst existing clients? Sending newsletters, yearly check-up emails, and even Christmas cards can have a huge impact on ensuring loyalty.
It’s these little touches that make a big difference. And if you can keep your new client onboard for 100 days, as a general rule they’ll stay for five years. So taking the time to work on each customer touchpoint will keep your clients happy for years to come.
Data from Invespcro, ‘Customer Acquisition Vs. Retention Costs – Statistics and Trends’