When breaking down sales and marketing budgets of many businesses, most of the spend goes towards acquiring new clients. While growth is an important part of any business strategy, maintaining and cultivating current clients matters, and it is another strategy that can lead to growth, investing in a client appreciation program may be some of the wisest money spent by a business.
The Statistics
An oft-repeated refrain, particularly when times are tight, is “I don’t have the money for client appreciation.” Most businesses focus resources on new client acquisition and not on cultivating the relationships they already have with their current clients. This allocation of time and money overlooks some critical statistics.
- It costs 5 times more to acquire a new client than to retain a current client.
- 68% of current clients who stop working with a business say they did not feel appreciated
- Experts vary in their estimates, but the gathered wisdom is that it takes anywhere from 7 to 16 contacts with a potential client to close a sale.
- The success rate for selling to a new client varies from 5-20%
- The success rate for selling to a current client varies from 60-70%
The cost in time, money and effort to obtain new clients can be explained by the fact that a new client needs to get to know, like and trust a business before it proceeds with a sale. You have already crossed these hurdles with current clients, so it takes far less to cultivate current clients and encourage them to make further purchases. When considering the statistics, it’s important to remember that the competition will be marketing to your clients, and clients that do not feel appreciated will be more receptive to exploring alternatives to your business.
Your Clients May Be An Untapped Source of Growth
A client who has a positive experience offers many positive opportunities for your business. Obviously, repeat business is the start. A client’s loyalty can inspire them to try additional goods or services offered by your business. In addition, a happy client will offer quality testimonials and reviews, which are increasingly important factors in attracting new clients. Finally, your current clients serve as your brand ambassadors. They will make referrals and advocate for your business.
A client appreciation program keeps you in touch with your current clients. Regular contact should include requests for feedback, which provides you with information vital to improving your business. These conversations are also an opportunity for you to talk to them about how they can help you. This can be broached by simply inquiring whether they have any other needs you can attend to, requesting a review or asking if they can make a referral. None of these asks can be made without follow-up and focus on your current clients, and if you do them in the context of appreciation, you will find the client more receptive to helping you out.
To continue to develop and expand your relationship with your clients, you want to help them focus on the value that you bring. A well-conceived client appreciation strategy is an excellent way to stay top of mind. As part of an overall marketing strategy, it takes some thought to make sure your program is authentic and effective. VirtuArte offers a variety of client appreciation advice and services that you can use to maintain your most valuable resource. We would love to connect with you for a complimentary strategy session to make the most of your client appreciation efforts. Contact us here to set up your session today.
