BRX Pro Tip: Client Retention is More Important Than Client Acquisition
Stone Payton: And we are back with Business RadioX Pro Tips. Stone Payton and Lee Kantor here with you. Lee, client retention is so fundamental and critical to a business’s long term sustainable success but say more.
Lee Kantor: Yeah, I think this is an area that people don’t invest enough time on. They spend so much time on getting that new client that they’re not really investing the time and energy necessary to keep a client. And just keeping your client for one more cycle, it can make a huge difference in the amount of revenue that a business coach or a professional service provider makes in any given year. So, I would recommend investing a lot more time and energy on client retention.
Lee Kantor: You know, part of the reason is that the real profit in your business is going to come from people and clients you already have. Client retention is the key to any type of long-term success because that means you have sustainable revenue, and you have easier growth. Just think about it. It costs less to retain a client than it is to acquire a new one. Just from that standpoint, you don’t have to spend new money resigning a client than you would of getting a brand-new person to become a client.
Lee Kantor: Number two, loyal clients spend more with you over time because they already know, like, and trust you. So, you’re already there in their minds for a lot of the stuff, so you’re going to be able to make more money over time, and you might be able to upsell them, you might be able to get more referrals from them, or they may even give you ideas of more services you could provide.
Lee Kantor: Number three, I just said it a little bit, but more referrals, word-of-mouth referrals. Satisfied clients don’t just stay, they bring you more business. They recommend you to others. That means you’re getting higher quality leads with no marketing cost. So, just that by itself is making you more money more efficiently. And new clients grow your business. Loyal clients sustain your business. Focus on retention. You’ll not only increase your profits, but you’re going to build a business that thrives for years and years to come.
