Everybody is so concerned with getting more clients. Don’t get me wrong, more clients isn’t a bad thing. It’s just not the only thing. What’s equally (in my opinion more) important is retaining your clients. I am sure you have seen a ton of advertisements focusing on getting more clients. Have you ever wondered how the mom and pop businesses are still kicking despite the global behemoths like Amazon and Walmart putting so many companies out of business?
The reason why these companies still exist is because they understand the value of taking care of their customers AND employees. They cater to their target consumer and their target consumer keeps coming back to them. I am a member of a private mom & pop style gym in Newport Beach, CA. It’s nothing fancy, despite the location. I pay 5X more than the cost of a regular gym membership at 24hr fitness. The reason why I always come back is because the trainers no me by name, the gym owner knows me by name, and they actually care about what’s going on in my life. The gym hosts family nights and supports its members businesses. The trainers and owner encourages the gym members to get to know each other. There is little to no turnover at the gym because of those simple things. The owner has retained the majority of the staff since I have been there.
Let’s put this in the perspective of dollars and cents. It costs anywhere between 5X – 25X more to acquire a new client than it does to retain an existing one. If we go with the lower end of the spectrum, it costs $5 to acquire a new customer for every $1 to acquire a new one. Considering that you are approximately 60% more likely to sell a product or service to an existing customer why don’t more businesses focus on retention?
I will never forget my childhood coaches who spent time talking to me and getting to know me. I will never forget the sports academies and programs I signed up for where the trainers actually cared about helping me get better as a person and not just an athlete.