20 Jul Building Client Loyalty Builds Your Business
Building client loyalty is essential to growing a successful business. It’s much easier to renew contracts if you build client engagement delivering consistently positive communication and service. Increasing client retention by just 5% can result in a 25% – 95% increase in profit for B2B companies. What’s more, the success rate of selling to an existing client is 60% – 70%, while the success rate of selling to a prospect averages 5% – 20%.
Fact and figures are nice, but where and how do you build client loyalty? Let’s take a look at three simple, yet effective ways to start building loyalty.
Your People are Your Brand
Client loyalty isn’t just one person’s job. It should be a corporate mindset that permeates every interaction your clients have with your company. Customer experience is overtaking price and product as a key brand differentiator.
What if roles aren’t client-facing? Even employees who don’t directly interact with clients on a regular basis often do something that reaches clients—like creating invoices, marketing content, or internal training that prepares others to interact with clients.
The Right Fit is Essential
Not every client is going to be right for your business. Taking on new clients that are a poor fit for your practice causes undue stress for those clients as well as your employees. Create a template for healthy client growth and retention by noting which types of clients work best with your organization.
- Look at your top clients to determine:
- Industry
- Number of employees
- Profit margin
- Job titles that make the best points of contact
- Most used products and services
- IT environment
- Time in industry
You can then use this information to create a profile to not only guide loyalty programs, but also sales and marketing efforts designed to identify and pursue new clients.
Shedding Problem Clients is Healthy
We’ve all heard someone say, “we lose money on every job but make it up in volume”. It rings true especially in IT service. Some clients can actually cost you money. Why spend more money trying to keep them happy than they pay you?
Shedding clients that aren’t in alignment with your business model is a wise business decision. Bad clients typically complain the most and require significantly more hands-on attention, reducing your overall profitability. Once the additional time, effort, and frustration are factored in, many companies realize that these clients aren’t worth the effort.
Revitalize employee morale and your bottom line by pruning problem clients from your portfolio. Letting go of one or two problem clients can make space for more great clients.
Another great way to build client loyalty is with ongoing IT assessments and reporting that keep your clients up to date on their networks, assets, and most importantly, the value you provide.
Network Detective Pro is the IT industry’s de facto standard IT assessment and reporting tool that provides end-to-end automation – from scheduled scans to report generation and delivery. It’s the only way to do the recurring IT assessments required to grow and retain your existing clients.
Click here to get a demo and find out how Network Detective Pro helps you earn more while lightening your workload.