Client retention. There, I said it.
Client retention is the most underappreciated number. Growth is the “oxygen” of any company. Companies and sales leaders spend a great deal of time and money trying to win that new client and most companies don’t even measure and report on client retention.
Does your company measure and report on client retention rates every month?
Client retention is the foundation of future growth. Just consider this: if you want to grow 15% year over year and your company has 90% client retention, you actually have to grow 27.7% to hit the 15% number!
Fact: a 2% improvement in client retention (from 90% to 92%) can have the same effect as reducing costs by 10% (and a lot less painful!) and a 5% improvement can improve profitability by 25%-95% (Bain & Company).
A dollar of revenue is a dollar of revenue, right?
Want to learn the fastest way to achieve your revenue and profit goals? Here is the roadmap that will take you there:
1. Measure client loyalty and satisfaction through a 3rd party Net Promoter Score® Survey
NPS® Scores segmented by revenue
2. Complete a financial segmentation exercise and layer your NPS® Scores over each segment
3. Measure, report on and recognize your team’s client retention on a monthly basis
4. Give your team the tools and training to effectively manage your key accounts
Pareto Principle: 80% of your revenue/profit comes from 20% of your clients
A vast majority of companies do not provide their Account Management teams with key account management, client retention/expansion training complete with:
A dashboard comprised of relationship and risk visualizations
Proactive notifications and reminders containing upcoming strategic action plan items that are due
A governance map to ensure key stakeholders needs are being met
*estimated average for companies interested in customized training, ClientFit key account management and continuous improvement reinforcement sessions
At Butler Street, we specialize in helping companies and their people grow through best practices in client retention and key account management. Join a live demo in an upcoming webinar ClientFit 2.0 How to Manage and Grow you Key Accounts:
- Sept 26th - 2:00PM EST Specific to the staffing industry. Register Now
- Sept 26th - 3:00PM EST Print industry focus. Register Now
Learn how ClientFit® 2.0 can help your company achieve double-digit growth and improve profitability by up to 75%.