Client Retention 101
Business owners are always focused on how to gain more customers – reach a wider base, more SEO, more marketing – but what about client retention? Sure, gaining new clients is essential to business growth, but getting a new client only to replace one that is departing just leaves the business owner with static revenues, and minimal growth.
Client retention is just as important as marketing, if not more important. At our firm, client retention is essential. Clients are billed monthly on a flat fee each month – so keeping that static is important in managing our business. Luckily, we have a very high client retention – approximately 90% of our clients stay with us long term.
The 3 things we have found most important in keeping that high rate of retention, and we try and instill these values in our employees from the start.
Provide Value Beyond the Client Capability This is essential in our approach to clients. Many of our new clients have poor bookkeeping and back office processes that inhibit their ability to manage their business – which is why they come to us in the first place. Instead of simply taking over the accounting procedures they are current doing, or mimic the steps that a in-house bookkeeper would take, we work to improve and manage their back office in a efficient way. Providing services that are very difficult to replicate by other firms or the client him/herself is very important in keeping that retention rate high.
Admit Mistakes – and FIX Them One of the core values of our firm is that we recognize we are imperfect, and that we make mistakes. While we try our best to put in procedures to prevent them, the reality is that mistakes happen and require attention. When faced with an error that a staff member has committed, we approach it by owning up to the issue, admit fault, never make excuses, and, most importantly, promptly FIX the problem. We have found that approaching mistakes this way, instead of finger pointing and blaming, enhances the relationship with the client and makes the relationship better overall, improving client satisfaction and confidence with our services.
Communicate! Another core value – we respond to our clients! This, however, does not mean we rearrange our day for a client request at the drop of a hat, but instead we recognize the request (i.e. respond) and add it to our to do list. A typical response to a client ‘urgent’ request would be – “I have received your request and will get it on my list for this week. I will let you know when it’s all set.” Although we are not promising immediate attention, in the end the client knows that we are at least responsive and is confident the work will get done. This type of communication enhances relationships with clients and creates a respectful partnership that again increases client retention overall.
Overall, these three essential and very simple practices have helped keep our client retention strong, and can be applied not only to your accounting and bookkeeping firm, but to any client service firm.
By: Hollie Bourne, Quality Back Office LLC