This week I want to put the spotlight on one of the most crucial aspects of running a successful agency: client retention. Having a singular focus on retention can make all the difference in growing your business. Let’s explore why!
🎯 Client Retention: The Cornerstone of Agency Success
As an agency, you might be tempted to prioritize acquiring new clients over keeping existing ones. Now, I recognize you never should take your foot off the acquisition pedal – but you should never go all in in a way where your current clients become an afterthought. Here’s why:
Retaining customers cuts acquisition costs – Acquisition is the most expensive part of your business potentially only next to your people costs. By focusing on keeping your current clients happy, you won’t have to pour as much money into acquisition & your ROAS will improve with the increase in contract lengths.
Served customers stay longer – Retained clients are more likely to invest in your services over time. This translates to increased revenue and a higher customer lifetime value (CLV). Even better, retained customers can add to “negative churn” when you begin to see expansion revenue from new services!
Happy customers, refer business – We all know that the best leads are warm referrals. Seemingly no acquisition cost PLUS someone they trust gave you the green light. The better you serve your clients, the better the chance you’ll get new opportunities.
Consistent clients keep you [predictably] paid – Retained clients contribute to a predictable and stable cash flow, allowing your agency to make better financial decisions and invest in growth opportunities.
As humans we always covet what we want versus what we have. Don’t do this with your current clients – they’re what give you the opportunity to grow your agency and live your life on your terms.
🔄 Client Retention Secret: Start Strong With Better Onboarding
Admittedly this isn’t really a secret. We all know that client onboarding is the most critical time in any client/agency relationship.
The fact is, you’re up against a lot when you get on that first onboarding call. Once someone has paid you – the first thing that is going through their head is “Did I make the right decision?”
The primary goal of your call is to make them feel like not only did they make the right decision…they made the best decision. And you do that by having a clear and thoughtful onboarding process.
Here are some resources we think will help when you onboard that next client: