Five reasons you are losing clients and how to stop losing them.
In sales it can be far to easy to bring on a client, set them up and forget about them!
Until of course they have an issue and you are all of a sudden fighting fires, and then your clients start dropping like flies.
Too many businesses take their clients for granted and this can lead to a higher rate than normal of what is called ‘Customer Churn’.
Customer churn is the loss of customers over a certain time period, or to go into more detail-
“Companies usually make a distinction between voluntary churn and involuntary churn. Voluntary churn occurs due to a decision by the customer to switch to another company or service provider, involuntary churn occurs due to circumstances such as a customer's relocation to a long-term care facility, death, or the relocation to a distant location”.
Customer churn is unavoidable but it can be manageable as long as we are aware of it.
Yes you are always going to lose a few customers per year.
But if you look after your clients, your attrition rates will be much lower.
Customer churn can be caused by -
Customers selling their business or your point of contact in the business moving on
Customers not feeling appreciated
Customers not feeling supported
Customers not feeling engaged with your product any longer
We can’t do much if they die but we can lower the risk for some of the other factors.
Develop and maintain a strong relationship with your client - touch base with them at least every 90 days this could be in the form of a visit, a phone call, an email newsletter, as long as you are staying front of mind - and reminding them that you still care.
It can pay to get to know other people in a company you are working with, say you are working with the CFO and they move on, the new CFO may have an existing relationship with another provider and suddenly you lose a contract.
If you have other contacts such as the CEO, you have a better chance of keeping that client.
You can also ask the exiting contact to refer you to their replacement
This is a killer for many client relationships, if a customer doesn’t feel appreciated they won’t stick around.
Always ask for feedback on deliverables - what did you get right, what could you have done better, what worked and what didn’t.
If you can, customise the product for the client - this way they feel like more of an individual, that the solution was made bespoke for them and therefore they can’t get it anywhere else.
Wow your clients by under promising and over delivering, no one ever lost out by doing something nice for their client that they didn’t expect.
Contact one existing client per week, touch base to see how things are going, if they are having any issues with your product that you can help with.
This also provides an opportunity to cross sell them something else.
As much as you can, encourage them to consume your product, you want them to get the full benefit so put mechanisms in place to ensure they are actually getting the results they expected when they signed up.
It is vital to analyse customer churn, when and why customers leave you in order to future proof your business and lower the rate of churn you experience in the future.
All of this comes down to developing strong client relationships.
Remember they buy you first.
You could have the greatest product ever but if the client doesn’t feel valued and appreciated, they will buy elsewhere.
Thanks for reading this far, I hope you have a productive month.
P.S. If you have experienced customer churn and would like to know more about strategies to retain your clients, please get in touch via the link below -