Top 3 Reasons Why Nurturing Your Client Relationships Leads to Growth
Client Acquisition is the process of gaining new clients, which tends to include a marketing and advertising budget, while client retention involves maintaining the clients that you’ve onboarded. Client retention includes developing a personal and thoughtful relationship with your clients.
Many firms spend a lot of time and money on client acquisition, but many forget about the countless benefits of nurturing your current client relationships. Here are the top 3 reasons why you should focus on nurturing your client relationships.
- Client acquisition costs 5x more than client retention
Research shows that it’s 5 times more expensive to attract a new client, than it is to retain an existing client. Client retention pays dividends. It is easier and more cost efficient to upsell and cross-sell to a current client than it is to onboard a new one. Remember that your current clients already love the services you offer, so it is more time efficient to sell to them, than to market to new clients who might not be aware of your firm.
- Nurturing your client helps you stand out from the crowd
Many firms work endless hours to accrue new clients, but forget about the value of their existing clients. One way you can distinguish yourself from your competitors, is to develop a nurture campaign with the goal of surprising and delighting your clients. Handwritten cards, milestone celebrations, and personalized gifts throughout the year show your clients that they are at the top of your mind. When they receive thoughtful communication from you, it helps you stand out from all of the other firms. Consider sending a handwritten card thanking them for your annual meeting, or sending them a bottle of wine and gourmet snacks to celebrate a family milestone.
- Loyal, happy clients can lead to generating new clients at almost no cost to you.
Research confirms that the best referral sources for new clients is through word of mouth. The most effective source of new business actually comes from your current customers. And, best of all, this referral source has no cost to you. Focus on deepening your relationships with your current clients. This can pay out dividends when it comes to your firm’s growth.
Remember that client’s like to be surprised and delighted. Clients love to brag about an exceptional service or experience they received from a company. In this day in age, receiving a personalized and thoughtful gift can help you truly stand out from your competitors. Consider a client who is an avid golf fan and is entering retirement: send them a care package with a thoughtful handwritten card, personalized golf balls, and a golf tracker for them to use on the greens. They’re sure to tell all of their golf buddies about the thoughtful and personalized gift they received from your firm! Which in turn, leads to more clients for you.
Remember Maya Angelou’s famous words, “PEOPLE NEVER FORGET HOW YOU MADE THEM FEEL.” These days, these words couldn’t be truer. If finding the time to show your clients the appreciation they deserve is a challenge, consider reaching out to a company like Client Porter, to create personalized turn-key client appreciation programs for your clients. We do all the work, you get all the credit.
