Are You Maximising Your Retention Rate?

Posted by:admin onMay 19, 2015

I regularly see firms with strong client retention rates, sometimes as high as 95 percent, yet they are still struggling to grow each year.

Client retention is a key factor to the long-term success of your business. The more clients you retain, the stronger your business becomes.

However, the real secret of top-performing firms is converting retained clients into full-time clients.

Full-time clients are those who regularly provide unsolicited referrals, leads, and introductions to prospective clients. They also provide testimonials and are happy to involve you in their network.

Full-time clients are your greatest source of new business growth.

Let’s do the math. Assume the following over a 12-month period:

  • 500 business clients.
  • 40% (200) are converted into full-time clients.
  • 25% (50) of these provide just three referrals each.
  • 150 leads are generated.
  • 25% of the leads are sold.
  • 37 new clients are acquired, just three per month.

First, focus on improving your client retention. Next, convert as many as possible into full-time clients. As your percentage of full-time clients increases, this will become your firm’s primary source of new business.

For many top-performing firms, it’s the sole source of growth.

Click here if you want to learn more about how client acquisition and our other programs work.

 

 

 

 

 

 

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