The Statistics That Support Client Appreciation

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 who do not feel appreciated will be more receptive to exploring alternatives to your business.

How Current Clients Become a Source of Business Growth

Clients who have a positive experience offer 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.

Staying Top of Mind Through Appreciation

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.

Making Client Appreciation Part of Your Overall Marketing Strategy

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.

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Are you …

• Always thinking about the next sale?
• Having difficulty creating client loyalty?
• Not getting the repeat business or referrals you want from your current clients?

Well maybe it’s time for you to start thinking about client appreciation.

If done well, client appreciation is an integral part of the sales/marketing strategy of any business.  After all, it costs five times more to land a new client than to maintain the relationship with an existing client.  It’s not enough to interact with the customer only when a sale is happening.  A good client appreciation strategy should include regular check-ins that are not “chasing the sale” but a genuine “Thank you for your business.”  In order to stay top of mind with your client, you can include in person meetings, telephone calls, e-mails, handwritten notes, videos and intentional gift giving.

How the Customer Experience Impacts Loyalty

Think about your experience at a restaurant.  If your food is delivered, your waiter can just sit back and wait to clear the empty dishes or sail by with a perfunctory inquiry about the food.  Or, your waiter can make a real effort to find out how the meal is going, check on water glasses, offer more drinks or bread and otherwise contribute to your experience at the restaurant.  Which kind of service gets the bigger reward?  The answer should be obvious.  The bread and water offered by the waiter may seem simple, but these gestures, free of charge to the customer, make for a memorable, pleasant experience, as well as a big tip!  The extra attention that gets rewarded when dining out is the sort of attention that will keep your clients loyal and invested in your success.

What Is Client Appreciation?

Client appreciation programs have the same impact.  It has been shown that 68% of customers who stop doing business with a company do so because they do not feel appreciated.  An appreciation gesture — that phone call, handwritten note, or gift — at an unexpected interval puts the humanity back into the business relationship.  It creates a connection with the customer that goes beyond the sale, it builds trust and gratitude.  When a client feels appreciated, they want to continue the relationship, resulting in repeat business.  But also, a customer who feels a genuine connection with you and your business can become an advocate for your business — promoting it through referrals and positive reviews.

Why Investing in Existing Clients Pays Off

When thinking about client appreciation programs, some people balk at the time it takes and the cost. However, the success rate of selling to an existing client is 60-70%, while the success rate of selling to a new client is 5-20%.  Don’t be penny-wise and pound-foolish when it comes to your client relationships.  Given the time, energy and expense of landing a new client, investing in the relationships of your existing clients will inevitably be less expensive and more productive.

Be Thoughtful With Every Appreciation Gesture

At VirtuArte, we feel that a customer appreciation program should be intentional.  This means that every appreciation gesture needs to be thoughtful.  Take the time to call your client and find out how they are doing.  If you are going to send a card, handwrite it with a personalized message.  Sending a video?  Again, personalize it.  If you decide to give a gift, make the effort to find a gift that shows you’ve paid attention to the client as a person.  This makes the gift memorable to your client.  Use your periodic check-ins to do more than assess how the client is doing; use them to show your client you really appreciate their business.

Want to know more about how you can show your customers how much you appreciate them?  Contact us here to set up a consultation about customized client appreciation programs to strengthen your client relationships.

The post Client Appreciation Is Key for Building Loyal Business Relationships appeared first on VirtuArte.