Yes, it’s tough to retain clients. Yes, it requires effort. But, is is worth it? Absolutely.
Client retention is essential for long-term growth, profitability, and sustainability. In fact, did you know that retaining customers is more cost-effective than acquiring new ones? A survey suggests, depending on what industry you’re in, acquiring a new customer is anywhere from 5 to 25 times more expensive than retaining an existing one, while increasing client retention rates by 5% increases profits by 25% to 95%.
Plus, keeping your customers happy and proud, will always bring you some valuable leads in the long-term through referrals or 5-star reviews (who could say no to that?).
Client Retention Strategies for your Marketing Agency
Client Retention Strategies – #1
Speak your Clients Language
Marketing your client’s product or service, means that you have taken a deep dive into their offerings, their needs and business strategies. Leverage that knowledge and incorporate into your communication and services. Don’t be afraid to use their own industry jargon, they will probably appreciate it, it’s always the small things that matter in customer communication.
Also, avoid using vague Marketing jargon, we love acronyms (trust me, I know) but in this case your customer want to see more tangible results and their business impact, if they constantly hear about performance metrics that they don’t understand, it will create a communication gap.
Speaking the same language it isn’t only about vocabulary, it’s also about their everyday tools. Get your hands dirty by pushing some marketing data to their CRM to enrich their reports or improve their workflows, or if they use slack create a common workspace for personal communication that will help you develop a rapport that goes beyond the professional level or create channels for lead management, be active to address their issues on the spot.
Client Retention Strategies – #2
Ask for their honest feedback
Feedback is always a go-to Retention Strategy especially for a Marketing Agency. It not only make your customers feel valuable, but also help you to grow and make adjustments and improvements to your services. Here are some examples on how to collect customer feedback:
- Surveys: Measuring and tracking client satisfaction is essential to retaining clients. It’s essential to understand how your clients feel about your agency, your services, and your team. Consider implementing a client satisfaction survey or using a Net Promoter Score (NPS) to measure client satisfaction. Use this feedback to identify areas for improvement, address issues quickly, and make changes to your processes and services.
- Focus Groups
- Customer Interviews: Ask for a Short Call especially for the high-value customers, so that you can see their honest expressions and reactions
Once you’ve gathered the results, analyze them and share them with your team in order to be aligned about your customer’s perception of their work and improve their tactics if needed. Follow up with customers after providing feedback to let them know that you appreciate their time and input. If they’ve made suggestions or raised concerns, let them know how you’re addressing those issues. This can help build trust and demonstrate that you value their opinions.
Client Retention Strategies – #3
Showcase your expertise
It’s important to not let customers have doubts about your abilities and expertise.You are a marketer, market yourself wisely to retain your existing clients and acquire new ones.
Delivering high-quality work is crucial to retaining clients. It’s essential to ensure that you’re delivering results that exceed your clients’ expectations consistently. This includes developing a deep understanding of your clients’ needs and goals, and then providing solutions that meet those needs effectively. Be transparent about your process, provide regular progress updates, and ensure that the final output is of the highest quality. Beyond your internal communication, try to be extrovert and creating high engaging content that highlights your expertise.
These are the top ways to show your expertise:
- Blog posts: Write educational content based on your customers’ industry
- Case studies: Create case studies for your customers’ success and create a Customer Success Hub. Creating a positive work culture will impact positively how clients perceive your agency.
- Social media: Share information and educational content or your Customer Success Stories, create polls or surveys to make your clients interact with you.
- Newsletter: Show that your business is relevant. Keep up-to-date with the latest trends and technologies and ensure that your services are always cutting-edge and innovative.
Client Retention Strategies – #4
Make them Understand your Long-Term Goals
Marketing isn’t about CTRs and monthly Conversion Rates, marketing is about Business Growth. Plan your strategy alongside your clients, empathize their pain points, make them feel envolved and part of the process, this is the only way for a steady, strong communication.
By communicating your long-term vision and goals, you can help your clients understand the bigger picture and the value of a long-term partnership with your agency and don’t get stuck on insignificant metrics. This approach can help to create a sense of ownership and investment in the partnership and encourage clients to remain loyal to your agency over time.
Client Retention Strategies – #5
Don’t Underestimate the power of “Thank You”
Thanking your customers is a simple yet powerful way to show your appreciation for their business and to strengthen your relationship with them. It is an effective way to build goodwill and trust, and to create a positive impression of your brand in the minds of your customers. When you express gratitude to your customers, you are acknowledging their importance to your business, and demonstrating that you value their loyalty and support.
This can have a significant impact on client retention, as it helps to foster a sense of loyalty and commitment among your customers. By showing your customers that you care about their satisfaction and are committed to providing them with the best possible experience, you can help to ensure that they continue to do business with you in the future. Additionally, thanking your customers can also encourage them to refer others to your business, which can help to increase your customer base and revenue over time.
Client Retention Strategies – #6
Never, but like never leave them on *read*
You are busy, we are sure about that, but there is no excuse for leaving your customers on read. Create internal automations to help you handle the communication and eliminate clients’ unanswered emails, texts and calls. It doesn’t matter if you are a Slack or Email fan, automate your process, be notify when your have missed a call or two and take action asap.
This isn’t only a Client Retention Strategy, it will help you to create excellent customer experience with your new customers.
Client Retention Strategies – #7
Create Credibility with Whitelabel Software
A white label software can be a valuable asset for marketing agencies looking to future proof their credibility. White label software refers to software products or services that are developed by one company and then rebranded and sold by another company as their own. Some common categories of white label software that marketing agencies may want to consider investing in include:
- SEO Tools
- Lead Generation Software
- PPC Tools
- Marketing Reporting Software
- Social Media Management Tools
- Call Tracking Software
Bonus: 4 Client Retention Metrics for Marketing Agencies
Customer Retention Rate [Formula]
Customer Retention Rate (CRR) is a metric that measures the percentage of customers who continue to do business with a company over a given period of time. It is a crucial metric for businesses to track as it provides insight into how successful they are in retaining their customers and building long-term relationships.
The formula to calculate CRR is:
CRR = (Total # of Customers at the end of the Period – New Customers Acquired)/(Customers at the Start of the Period)
For example, let’s say a company had 500 customers at the start of the year (S), acquired 100 new customers during the year (N), and ended the year with 450 customers (E). Using the formula, we can calculate the CRR as follows:
CRR = ((E-N)/S) x 100
Where E = number of customers at the end of the period, N = number of new customers acquired during the period, and S = number of customers at the start of the period.
CRR = ((450-100)/500) x 100 CRR = (350/500) x 100 CRR = 70%
This means that the company has a CRR of 70%, indicating that 70% of its customers remained loyal and continued to do business with the company over the course of the year. A high CRR is generally considered to be a positive sign for a business, as it suggests that they are successfully retaining their customers and building strong, long-term relationships.
Customer Churn [Formula]
Customer Churn is the rate at which customers stop doing business with a company over a given period of time. It is essentially the opposite of customer retention and is an important metric for businesses to track as it can help them identify potential issues with their products, services, or customer experience.
The formula to calculate customer churn is:
Churn Rate = (Number of Customers Lost / Total Number of Customers) x 100
For example, let’s say a company had 500 customers at the start of the year and lost 50 customers over the course of the year. Using the formula, we can calculate the churn rate as follows:
Churn Rate = (50 / 500) x 100 Churn Rate = 10%
This means that the company had a churn rate of 10% for the year, indicating that 10% of its customers stopped doing business with the company. A high churn rate can be a cause for concern for businesses as it can lead to a loss of revenue and damage to their reputation. Therefore, it is important for businesses to monitor their churn rate and take steps to reduce it if necessary.
Net Promoter Score [Formula]
Net Promoter Score (NPS) is a customer satisfaction metric that measures how likely customers are to recommend a company’s products or services to others. It is based on a single question: “How likely is it that you would recommend our company/product/service to a friend or colleague?”
Customers are asked to rate their likelihood on a scale of 0 to 10, with 0 being “not at all likely” and 10 being “extremely likely.” Based on their responses, customers are classified into one of three categories:
- Promoters (score of 9 or 10): These are customers who are highly satisfied and likely to recommend the company to others.
- Passives (score of 7 or 8): These are customers who are satisfied but not necessarily loyal. They may recommend the company if asked, but are not likely to actively promote it.
- Detractors (score of 0 to 6): These are customers who are dissatisfied and likely to share their negative experiences with others.
The formula to calculate NPS is:
NPS = % of Promoters – % of Detractors
For example, let’s say a company surveyed 100 customers and received the following responses:
- 50 customers gave a score of 9 or 10 (Promoters)
- 30 customers gave a score of 7 or 8 (Passives)
- 20 customers gave a score of 0 to 6 (Detractors)
To calculate the NPS, we first need to calculate the percentage of Promoters and Detractors:
% of Promoters = (50 / 100) x 100 = 50% % of Detractors = (20 / 100) x 100 = 20%
Using the formula, we can calculate the NPS as follows:
NPS = % of Promoters – % of Detractors NPS = 50% – 20% NPS = 30
This means that the company has an NPS of 30, which is considered to be a good score. Generally, an NPS of 50 or higher is considered to be excellent, while an NPS of 30 to 40 is considered to be good. Scores below 0 are considered to be negative and indicate that the company has more detractors than promoters.
Customer Revenue Growth Rate [Formula]
Customer Revenue Growth Rate is a metric that measures the percentage change in revenue generated from existing customers over a certain period of time. It helps businesses to understand how successful they are in retaining and growing their existing customer base. The formula to calculate Customer Revenue Growth Rate is as follows:
Customer Revenue Growth Rate = ((Revenue at the end of the period – Revenue at the beginning of the period) / Revenue at the beginning of the period) x 100
For example, let’s say a company had revenue of $500,000 at the beginning of the year and $600,000 at the end of the year. During this period, the company generated $200,000 from existing customers. Using the formula above, we can calculate the Customer Revenue Growth Rate as follows:
Customer Revenue Growth Rate = (($600,000 – $500,000) / $500,000) x 100 Customer Revenue Growth Rate = (20%) x 100 Customer Revenue Growth Rate = 20%
This means that the company’s Customer Revenue Growth Rate was 20% for the period in question. A positive growth rate indicates that the company was successful in retaining and growing its existing customer base, while a negative growth rate indicates that the company lost customers or experienced a decline in revenue from existing customers.
It’s clear that client retention is a critical aspect of building a successful and sustainable agency. By putting clients first and prioritizing their needs and satisfaction, agencies can improve retention rates, reduce churn, and ultimately increase revenue over the long term. The seven strategies outlined in this blog post, from focusing on customer service to providing value-added services and using data to drive decisions, provide practical and effective ways for agencies to achieve these goals. By implementing these strategies and continually striving to improve processes and communication, agencies can build strong and lasting relationships with their clients and set themselves up for long-term success.