It’s likely you purchased more items online in the past 12 months (consumer data shows a 44% year over year increase in online shopping in 2020.) You probably changed your fashion purchases if you are one of the millions of Americans who moved to some level of work from home status (hello comfort, goodbye stacked heels, ties, and suits). Maybe, you switched out your cable, internet, or cell phone carrier to better meet your needs.
New items from new sources for new reasons. Priorities change. Needs change.
How about your clients?
Are they looking for new items from new sources for new reasons? Have their priorities/needs changed? Take a close look at your client and revenue retention numbers and you’ll have your answer.
Why does it matter? The math is simple:
It’s 6-7 times less costly to sell to an existing client than to win a new one
Selling to current clients has a 70% win-ratio compared to a 20% win-ratio for new clients
Increasing customer retention by 5% can increase profits anywhere from 25% to 95%
Because 100% of your business today is made up of current clients, shouldn’t you have a client experience process with all the rigor and dedication required to keep them over time and with their changing priorities and needs, new personnel, technology, and strategies?
Here are 5 key elements of a best-in-class client experience process:
Customer Feedback. Everything starts and ends with customer insight and feedback. Understanding and analyzing what your clients’ value will provide a powerful framework for making strategic business decisions, prioritizing projects, and allocating resources so you can continue to add value over time and changing priorities. Gathering honest, consistent feedback and benchmarking is best achieved through a third party. Implementing Voice of the Customer and Client Advisory Committees for deep insights from your most valuable clients coupled with NPS to gather trends, perceptions and insights across your entire client base is an easy and effective way to know how best to meet customers' needs and wants today & in the future.
Client Segmentation. Not all customers are created equal. Applying the right effort and resources to the right clients delivers the highest client experience. We all have 525,600 minutes in a year. High growth organizations understand this and use their resources and time wisely. Use customer and financial segmentation models to capitalize on your largest opportunities for innovation and growth. Understand where effort exceeds margin and improve processes rather than lose a client. Meet your customers where they want to be met.
Standardized Account Management Tools and Training: Your sales teams have the training and tools to plan and think strategically, measure and reduce risk, and advance their client relationships. You can systematically identify revenue risk and then build a step-by-step action plan, ensuring that they are focused on those activities that will ultimately maximize the potential of each and every client relationship to become and remain as trusted advisors.
Performance Reporting. A framework and 100% execution on alignment with clients’ annual strategies and assigning accountability and ownership for outcomes. Standardizing an approach to capture and discuss strategy and performance against strategic initiatives through Quarterly Business Reviews with key executives.
A Client-centric Culture. Leadership meetings have client discussions on every agenda. The CEO and all Senior executives are connected to key clients as executive sponsors. Rewards and recognition are given to those who impact high NPS and high retention numbers. Client experience is part of your Strategic Plan because they believe this:
When the client pays your invoice for your services, you are even. You have to earn their business all over again each week.
Best-in-class client experience processes include five key elements. Now is the time to make this your focus. The rate of change will continue to accelerate, and each gap you have in the process will slow your chance at growth. Over the next six weeks, Butler Street blogs will help you turn these gaps into green lights and position your organization for consistent, profitable growth and to stay ahead of the curve no matter what roadblocks you face.
Butler Street helps companies, and their people grow and has successfully implemented customer experience processes, tools and training for hundreds of organizations. If keeping your clients and expanding your share is important to you, and if you see any gaps in these areas, we can help. Contact us to assess and optimize your client experience process.