How to Increase B2B Customer Retention

Posted by Ryan Howard on Jun 19, 2017 11:20:25 AM

How to Increase B2B Customer Retention.png

Statistics show that it costs five times more to attract a new customer than to keep one. Growing businesses, however, typically devote more time, money and effort to customer acquisition than retention. Even with cost of marketing, digital and traditional, and sales, new clients are still not buying as quickly or as easily as current clients. 

With that in mind, let's discover some tips for keeping current clients happy and loyal.

New Businesses Need New Customers

If you've started a new business, of course you need to spend some time and money attracting potential clients. New customers will help grow your business and enable you to pay whatever marketing and sales costs were required to attract them. One of the most difficult parts of being an entrepreneur is landing those initial clients. Get them in the door, by all means, so you can continue building your business. 

Then remember....

Your Clients Want Your Attention

Upselling current clients is dramatically less expensive than landing new ones, especially if you've established a solid, trusting relationship. A good customer relationship will lead to client referrals and help with the success of your company.  On the other hand, an unhappy client can easily harm your reputation if it goes sour. Business research shows that a 5% increase in customer retention efforts can increase your company profitability by 75%. That's a great reward at very little effort.  

What efforts lead to customer loyalty and greater sales?

Learn the Best Way to Get Clients to Pay

Defining the Client Relationship Model

You want your clients to stick around for a while, pay their bills on time, refer others, and give you great testimonials for your website. A customer that stays loyal to your business will help your company grow AND succeed. Creating loyalty may seem like a no-brainer - hold up your end of the contract and offer good customer service. In actuality, you may need to do more including creating a client relationship model for your business. 

Consider the following:

Communication

  • When was the last time you talked with your client, either in person or over the phone?
  • If you're offering a service to your client, are they happy? Have you asked? How often?
  • Are your current clients aware that you may have new offerings or referral bonuses?
  • Do your clients feel comfortable enough with you to discuss their company concerns?

Planning

  • If your client has been with you for a while, you may have suggestions for improvement. That improvement could be to their marketing, their finances or your area of expertise. 
  • If your client is also a growing business and you become a trusted partner to them, you could also be included in future business planning discussions.
  • Your clients may be more loyal to you if you are dependable, loyal, trustworthy and invested in their business.

Responsibility

  • Is there someone within your business that makes client retention their priority? 
  • If your business is small, create calendar reminders to invite clients to in-person meetings, for fun or business. Take on the responsibility of communicating or engaging regularly with your clients.
  • Be honest, transparent, friendly and firm when facing challenges with your clients. Take responsibility for your part of the agreement but make sure they are doing the same. 

More than likely, your clients have hired you to fill a need that they don't have in-house. As you become a reliable resource, your skills prove invaluable and your clients will want to include you in the picture of their business future. 

Be Picky

Attracting and retaining clients is important to the growth and success of your business. Most importantly is attracting and retaining the right clients. Defining your client relationship model should include the qualities and standards that make up your perfect client. With a brand new company, you may have some idea of who your target clients would be but pay attention to any red flags that may signal a bad situation later. The more clients you encounter, the more you'll learn who you can work with and which clients you need to bypass. 

Listen and pay attention to the clients you're attracting to your business. Ask questions and take the time to understand how your work can prove invaluable to their business. Eventually, you'll have established a substantial foundation of clients who enjoy working with you and with whom there's mutual trust. 

Are some of your clients not paying invoices on time? Click the green button for a template to prompt clients to pay up.

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Topics: Best Practices, Business relationships