Why is Staying Connected So Important?
Solid client retention is essential to building and maintaining a successful book of business.
Think about it, you worked hard to gain the clients in your book, and experts agree that it costs more to get new customers than to keep your current ones.
And cost of acquisition isn’t the only factor here.
A five percent increase in customer retention can lead to an increase in long term profits of between 25 to 95 percent, based on studies by Bain and Company and Earl Sasser of Harvard Business School.
Keeping a customer actively engaged in your business means that they come back to purchase again, or purchase something else.
And then of course, there’s the goal that we all work toward.
Delighted clients who are so happy with your services that they refer their friends and family to you.
Which in turn also improves retention rates because referred clients are more likely to stay with you.
In fact, they have, on average, a 25 percent higher retention rate within the first three years than customers who come from any other source.
To sum it all up, staying connected is important because it’s a cost-effective strategy, can increase your profits, and generates new business when done correctly.
In our next lesson, we’ll talk about how to do retention the right way. See you there!