Are You Maximising Your Retention Rate?
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.
