Depending on which study you believe, acquiring a new customer is anywhere from 5 to 25 times more expensive than retaining an existing one. Regardless of who is correct, there is an overwhelming consensus that it is far cheaper to retain an existing client than attract a new one.
Therefore, with borrowers likely to move into a new loan every 3 to 5 years, it is important to continue to service existing clients and not solely focus on attracting new clients.
It’s easy to get caught in the trap of working hard to secure the business of a new client and then find ourselves immediately moving onto the needs of the next new client without stopping to consider the needs of past clients. After all, your existing clients do not appear to have an immediate need for your services – yet.
Losing touch with past clients can consequently lead to a loss of future revenue.
Surely there must be a better way of servicing the needs of your existing clients, in a time and cost effective manner, while still allowing you time to grow your business by attracting new clients.
Aim To Retain
It’s important to have a business sales process that not only attracts new clients but also retains existing clients.
So how do you demonstrate value knowing your past client may not have an immediate demand to utilise your services again for a number of years? Experience has shown that education is not only effective at engaging and qualifying new clients it also delivers value to existing clients.
Where Are Your Existing Clients?
Before we can engage, we need to know who and how to contact past clients.
When was the last time you updated your client database? Are you regularly adding the clients you have just settled?
It’s important to always update your database to ensure that you have an opportunity to retain all of your clients. Those not included are likely to be the ones who ‘get away’.
Why? You Ask
Regular engagement ensures that when the need for a new loan arises, you and your company remain top of mind for your clients.
Engagement through education demonstrates your knowledge, expertise and capabilities and will encourage your clients to utilise your services again at the appropriate time.
With an up to date database you’re in a great position to regularly engage your existing clients.
Email is one of the most effective channels of communication available to communicate and engage with your clients. It’s direct, personable and allows you to nurture the relationship.
When engaging with your clients through education you should consider content that is:
- Current – with the latest data and trends
- Relevant – to their long term financial position
- Enlightening – providing insight with additional knowledge
- Engaging – encouraging them to want to learn more, and
- Easy – to understand
Your education should not only inform but also present opportunities for your clients to improve their position with the potential to create reasons for them to call upon your experience or services.
No one wakes up one morning thinking that they need to call their broker. We need to challenge their thinking so they are triggered into taking action.
Is There More To Engagement?
Yes, engagement though education is not only relevant to existing clients, it applies equally to your potential clients.
Similarly, engagement is only part of the retention equation. Engagement is only effective when coupled with a strong qualification method, otherwise you will not be able to identify those clients who are likely to need your services in the short term.
What Does Your Retention Plan Look Like?
- Do you have an effective retainment plan?
- Are you regularly engaging your clients?
- If so, are you triggering your clients into action with relevant education?
- Can you identify those clients triggered by you and likely to need your services in the short term?
Need Further Information Or Help?
Click here to schedule a time that best suits you to chat with Your Client Matters so we can help you formulate an engagement, qualification and retention strategy that will achieve your specific objectives.