Nurturing Customer Relationships: The Key to Long-Term Business Success
The success rate of selling to an existing customer is an impressive 60-70%, compared to a mere 5-20% when selling to new customers. This statistic underscores the importance of Customer Lifetime Value (CLV), a measure of the total predictable revenue your business can generate from a customer over their lifetime. In layman's terms, you've spent all this time and energy marketing, branding, meeting people, building relationships, and serving your customers - the smartest thing you can do, is make sure you hang on to them and keep their business with you instead of someone else.
Customers today are savvy and constantly targeted by competitors. Take real estate agents, for example, where customer/client poaching is a common practice. Think about the last purchase you made where multiple options were available. Beyond cost and features, what likely influenced your decision was the overall experience. As consumers, we want to feel confident and happy about our investments - financial or otherwise.
Generally speaking, aside from cost and features, the reason we choose one over the other is the experience. When we spend our money we want to feel good about it. We want to feel confident in our decision, and feel happy about the fact that we just parted with our money, in exchange for something we want or need.
The Start of a Lasting Relationship
If you're a professional service business let's use the word 'client'. Contrary to popular belief, your relationship with a client truly begins after the first engagement. This is especially true for service-oriented businesses like tax accounting, legal advice, web design, or marketing. Neglecting or taking clients for granted opens the door for competitors to win them over. Clients want to feel valued, seen, acknowledged, and appreciated, making excellent client care a non-negotiable part of your daily operations.
If you're new to client care, here are some proven strategies to keep your clients loyal year after year:
Thank You Notes/Gifts: A simple thank you card can make a lasting impression. Personal touches like branded thank you cards can be easily created on platforms like Canva.
Events: Face-to-face interactions are invaluable. Hosting events allows you to showcase your team and culture while expressing your appreciation for your clients. It doesn't have to be grand, it's all about who's in the room, and the reason you're there.
Merchandise: Branded promotional products can strengthen client relationships. Consider unique items like custom water bottles, bags or event branded wine pouches to stand out. According to a study by the Promotional Products Association International (PPAI), 83% of consumers are more likely to do business with a company that has given them a promotional product. When you personalise the merchandise with their name it's even more special!
Meetings, Calls, & Coffees: Personal check-ins, whether through calls or casual coffee meetings, show clients that you genuinely care about their well-being and success.
Building a strong relationship based on shared values increases the likelihood of long-term loyalty. Clients are more inclined to stick with businesses they know, like, and trust. Authentic connections not only enhance your business but also contribute to a fulfilling career and a thriving reputation.
Knowing When to Part Ways
Sometimes, despite your best efforts, a client relationship may not work out. It's important to recognise when it's time to part ways.
It's okay to say goodbye.
Whether due to a change in direction or a lack of alignment, ending a client relationship gracefully is crucial. If needed, consider transferring the client to someone in your organisation who can better connect with them.
As Robin Sharma wisely said, "The business of business is relationships; the business of life is human connection." Prioritise showing appreciation to your clients, and watch your business, relationships, and bottom line flourish.
Make the time to show appreciation to your clients, and watch your business, relationships, and business blossom.