Poor client retention is actually one of the most expensive mistakes for marketing agencies. It actually costs 16 times as much to build a long-term relationship with new clients than it does to manifest the loyalty of a current client. Thus it’s safe to say that reducing your client churn is a priority.
However, if it were that easy, everyone would be doing it. As does any great business strategy, it requires consistency throughout the whole company, from the executive team to entry level employees. We researched and examined agencies with the lowest churn rate and put together a list of common qualities these businesses had in their processes:
Personalization
Top agencies know their clients. We know this because if you know your clients, you know how to make them happy and successful. There are many ways you can go above and beyond in personalizing your relationships. But many see significant benefits to doing little things: sending a relevant book, birthday/holiday gifts, taking them out for lunch, or even calling to give guidance beyond what they’re paying for, if possible.
If that doesn’t sound motivating enough, a customer who is “totally satisfied” with your business delivers 2.6 times as much revenue as one who is “somewhat satisfied.” Going the extra mile to make a customer happy has its own unique ROI.
Over-delivering for clients is a surefire way to earn their trust, respect, and long-term business. Don’t treat your clients like a to-do list, treat them with genuine care, and they’ll often reciprocate.
Communication + Expectations
Communication is key… even in B2B. While some people are considerate about giving clients a call when there is an update or progress, the best agencies don’t stop at that. Checking in is all about maintaining the relationship with the client, from “How are things?” to “I read this LinkedIn post and thought of you!”
It helps reassure the client that they are consistently on your mind and they can see you prioritize their business. It’s simple, yet goes a long way.
Lead Conversion Solution
Smart agencies reduce their client churn by converting leads at a higher rate. Many marketing agencies often lose clients because the leads they generate for them don’t go through a clean or efficient lead engagement process. By solving that problem for your clients, customers stick around and probably increase their advertising spend with the marketing agency.
This is best done partnering with a lead conversion solution like Verse. Verse utilizes their own 24/7 contact center, using 2-way text conversation and an AI software to capitalize on speed-to-lead. This guarantees your clients’ maximum conversion rates and an increase in revenue. Simultaneously, it validates your agency’s efforts on lead generation. Thus, client retention is maintained– and will most likely bring you many referrals.
Solid Reporting
Yes, it’s not the most fun part of the agency-client relationship. Yes, your client may not even read most of it. But it’s important. The client shouldn’t even have to ask for it. You should be showing your client what you’re doing that makes you worth the monthly payment. Even if there is a setback, analyze the errors and showcase the adjustments that will and should show improvement in the notes of the analysis. A client should be confident in your work but the statistics and reporting are going to only further support that.
Reward Customers for Referrals
There are few better things than a client referral. Why? Because it puts you a step ahead in establishing trust with the new customer and they’re more likely to stay with you out of brand loyalty. This is why it’s important to incentivize it with your customers. Whether you promote a reward or not, offering your customers something in exchange for generating new business is important and only further iterates how much you appreciate them and their business.
For more about how Verse partners with marketing agencies and lead generation companies, check out our Partners page.
