How many clients do you actually talk to? Actually engage with, not just send out an email with your latest blog or some other marketing tactic you’ve been told to implement by a consultant. Chances are that you don’t speak to that many at all.
Now, think about the number of clients you don’t talk to, and how much money they currently bring into your business. For many people, this would be a sizable chunk of their business.
Imagine what would you would do if you lost 10% or 20% of these clients, what your business financials would look like. Would you need to lay off staff? If you lose 20 clients each worth $2,200 a year, that’s $44,000 annual revenue lost.
Without the proper engagement and the proper management, this could be happening to your business, and you don’t even know it.
Are you shouting?
When it comes to talking to your clients, what do you do? Do you send them emails once a month, or do you try and interact with them to create a personal relationship?
By just bombarding your clients with content, and not starting up a conversation with them or listening to what they have to say in return, you are shouting, not talking. By not taking the opportunity to engage with your clients you could be costing yourself money.
According to studies by Bain & Company, a 5% increase in customer retention can lead to an increase of profit of between 25% and 95%, and the likelihood of turning this customer into a repeat customer is 60% to 70%. With New clients, your chance of conversion is around 5% – 20%. That’s a massive difference and if you sat down and looked at the numbers, also a massive difference to your acquisition costs.
What is being said here is that if you keep a client, and keep a client happy you will keep that constant income, in addition to having a better chance of increasing the amount of money you make out of them. Think about what an extra $1000 a year could be on each and every client on your books.
100 clients = an extra $100,000.
How do I talk?
Again, if you talk to an expert or begin doing research on the topic, the issues of client engagement look expensive and cost prohibitive. But, it doesn’t have to be. It is possible to pass on the cost of client engagement to your clients, as we’ve previous discussed in our past blog – Customer engagement – A new cost of doing business.
One of the most simple ways to talk to your clients is to actually pick up the phone and start a conversation.
By using software to help you gain access into your clients’ personal or financial lives, you have a reason to pick up the phone and start a conversation with them. By implementing software which can automate reports, you aren’t spending hundreds of extra hours on this task and the engagement payoff can be immense. All you have to do is schedule time in your diary every month or every two months to call these clients. This software can give you the excuse to start the conversation, then the rest is up to you.
Why should I talk?
The simplest reason is because your clients will talk back. When you open up a dialogue and start a relationship, they will be more open to telling you exactly what it is they want. I mean exactly. They will tell you what they think and they will talk to friends and family about you. You will have the opportunity to learn more about what they think about you and your services, and hear things you normally wouldn’t. Think of it as free market research.
The reason to start the conversation and engage with your clients is because it is an opportunity for you to learn more about them. This will increase your sales opportunities and give you leads that have a higher chance of converting.
When it comes to talking with clients it’s important you make sure you have a two-way conversation with them, and not just a one-sided information dump. The more you can engage your clients in their service the better results you will have, and if it all works the healthier your bottom line will be.