If you ask a business owner how they are going to grow their business, most will tell you by attracting new leads and acquiring more clients.  Now, don’t get me wron,g there is a need for businesses to acquire new clients, but this is costly as a growth strategy.  It also ignores one of the business’s most valuable assets, its existing clients.

Why Client Retention Is More Cost-Effective Than Client Acquisition

Research by Invesp shows:

• Acquiring a new client costs five times more than retaining an existing client.
• 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%; and
• Increasing client retention rates by 5% increases profit by 25-95%.

Focusing on client acquisition is a less cost-effective way to grow your business.  You’ve already invested marketing and sales resources in your existing clients and have built the know, like and trust with them.  They’ve purchased your products and/or services and started to develop a relationship with you and your business.  Existing clients are 50% more likely to try new products and spend 31% more.

How Loyal Clients Drive Referrals and New Leads

As these clients get to know your business and make more purchases, they are more likely to share your products and their experience with others.  Thus, you become both loyal clients and advocates for your business.  Existing clients can become a lead generation source for your business as they refer family, friends and colleagues.  Studies show 92% of potential leads trust personal recommendations more than any other kind of marketing.

Using Client Insights to Improve Products and Services

Your existing clients can also be your best source of information on the clients you are targeting, since they have already bought your product or service.  Their shopping habits and purchasing patterns can help you better understand why and how leads become clients, enabling you to refine your marketing and targeting efforts.  At the same time, these clients can provide you with feedback on how to improve your products and services, plus spot opportunities for new products to add to your current offerings.  Cross-selling, which can increase profits up to 40%, is easier with existing clients than with new clients.

The Long-Term Benefits of a Strong Client Retention Strategy

The importance of client retention on your business growth is clear.  It leads to:

• Spending less on marketing and advertising;
• Lower cost of acquiring new clients as your business gets more qualified referrals;
• Sales with higher margins as existing clients are less price conscious and value your business; and
• More repeat purchases because existing clients believe you offer superior products and/or services.

The benefits of client retention not only impact your revenue and profit, it can also impact your employee retention.  Focusing on client retention allows your employees to spend less time trying to acquire new customers, more time developing meaningful relationships with your existing clients leading to higher morale.  Work becomes less about sales and more about people.

How VirtuArte Helps Businesses Improve Client Retention

Client acquisition is important, but don’t make it your business’s sole priority.  Don’t neglect your existing clients.  A satisfied, loyal client is worth more than one who is not.  Don’t have a client retention strategy? Let VirtuArte help.  Contact us here or give us a call at 866.228.3497 to set up a complimentary strategy session to discuss options for your client retention efforts.

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Use Video Chat to Maintain Personal Connection

It seems like overnight, everyone discovered zoom and the many other video conferencing solutions out there. While the reason for the dramatic increase in video communications is that it is the next best thing to an in-person meeting. Video chats allow you to see facial expressions and other nonverbal behaviors. Consider scheduling a check-in with your clients via video chat. This should not be a sales call. Rather, it is an opportunity to find out how they are doing and if there is anything you can do for them. Don’t forget to maintain professionalism in your appearance and decorum during the call. If you truly don’t like video chats, then pick up the phone and call your clients.

The Impact of a Handwritten Note

At VirtuArte, we consistently get the feed-back that handwritten notes are among the most impactful ways to communicate appreciation. The personal touch and the effort that goes into the note are both apparent and welcome. The key right now is to give thanks to you clients for being a valued part of your business. You want to let them know you are thinking about them, and you are there if they need anything. If you don’t have a mailing address, send an e-card, but be sure to include a personal note that shows you have taken the time to truly consider each customer.

Strengthening Relationships With Virtual Gifts

There’s no reason to interrupt your client gifting strategy right now. In fact, you should consider the impact a thoughtful gesture can have during a time of crisis. Some recommendations include:

• An audiobook
• An e-Book
• Online Subscription to a magazine or newspaper
• An online course
• Podcast

Take the information you have been gathering about your clients and use it to personalize each gift. Send something that reflects the client’s interests.

Creating Shared Experiences With Virtual Meals

Friends and families are gathering online to have virtual meals together. You can offer the same opportunity to touch base to your clients. However, take this gesture a step further with a client, and make it a business lunch that’s your treat. How? Buy lunch from a restaurant that is local to your client and have it delivered. Order your own lunch, and then log onto and enjoy a meal together. If you want to meet up for a drink, instead of doing a run of the mill happy hour, consider doing a virtual wine tasting. Again, you can order a delivery to your client and then have a wine steward join online for the experience.

Why Personalized Communication Matters More Than Email Blasts

Just like any other gesture, it is more meaningful if you personalize your email communications. Sending out an email blast to clients will get your communication lost in the noise of the clients’ inbox. Be thoughtful about your Subject line, and make sure to lead with a highly personalized sentence that makes it clear you are making a genuine effort to connect.

If you need assistance in implementing any of these ideas or want to brainstorm further, contact me at dmyers@virtuarte.com or at 202.297.9524

The post How to Stay Connected With Your Clients During Uncertain Times appeared first on VirtuArte.

With the arrival of the new year, many businesses breathe a sigh of relief that they have finished with the year-end rush to get holiday cards and client gifts out the door.  With the big push completed, now may be a great time to consider your client gifting strategy and explore business gifting approaches that increase the impact of each gift and make a lasting impression on your clients.

Unique Gifts Have The Biggest Impact

I think a unique gift will have a greater return on your investment.  A few years ago, a client came to me because he said he wanted to give a gift to a customer who was also somewhat of a mentor.  He presented me with some ideas about the customer’s likes and interests, gave me a price point, and, after some research, I was able to make a few suggestions, including a mask from an area that my client knew his customer was interested in.  The result was even better than expected.  The customer almost became emotional and specifically expressed appreciation for the thoughtfulness of the gift.  The gift had a huge impact on my client because he took the time to make the gift unique and spontaneous.  He gave some thought to the customer’s tastes, and he hand-delivered a gift selected with the intention of being meaningful.  I don’t think a unique gift has to be expensive.  Taking the time and effort to come up with a customized gift for your customer will have an impact that far exceeds the cost.

Put Your Budget Into Spontaneous Gifting

My client’s gift had an additional impact because the client gave it to his customer in February — it wasn’t competing with any other holiday gifts, and it clearly showed that a specific thought went into the gift.  Even the best of client gifts can get lost in the shuffle at the end of the year when packages are arriving from all sorts of partners, vendors, and other business associates.  While there is no reason to forgo the holiday gift altogether, consider a more spontaneous gesture.  This will show that you have the client specifically in mind rather than checking a name off a list.  A gift that doesn’t relate to an event or a holiday conveys the message that you keep your clients top of mind at all times.

A Generic Gift Can Backfire

The problem with a lot of end-of-year gifts is that they are purchased in bulk, and it shows.  A bottle of wine or a food basket won’t be as effective as a personalized, unique gift for several reasons.  First, everyone is doing it.  Going the predictable route with your gifting will result in the gift being added to a pile of gifts from other businesses and possibly getting regifted.  Second, the recipient may perceive that, for all the business they’ve given you, this generic gift doesn’t reflect much in the way of appreciation.  Third, while unintended, a generic gift can convey the impression that you don’t know or care enough about the client to give a gift that you know they will like, particularly if the client doesn’t actually like the gift you gave.

Knowing The Etiquette of Gifting

A promotional gift is different from a “thank you ” or appreciation gift.  For promotional gifts, the intention is to create additional customer awareness, so it is appropriate to increase brand visibility with a logo on the gift.  However, if giving a gift to an existing client to express gratitude or appreciation, then it should not be a promotional item — it should be a gift demonstrating that you put some thought into the client’s interest and needs and came up with something that wasn’t sitting in your storeroom.

Gifts are an important marketing tool.  The investment in a gesture towards a customer or client will help that client feel valued and understood.  To achieve this outcome, approach your client gifting strategy thoughtfully and intentionally.  A unique gift, timed to be noticed and given with care, will have a lasting impact in building customer loyalty.

Want to find that perfect, unique gift for a valued client?  Contact us here for more information about working with VirtuArte.

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