Hint: you should be.

You’ll certainly be aware of client retention and no doubt have retention goals, strategies and management in place. But when was the last time you really paid attention to what it’s doing for your business, and whether or not it could be working harder for you?

Your clients are your bread and butter so, along with lead acquisition, client retention is an objective your business needs to be prioritising to ensure growth, longevity and success. Compared to lead acquisition though, investing as much time and effort into retaining your customers as acquiring them can lead to big benefits for your business - and big financial return in the long-term.

Client retention rates in the financial and professional services industries generally come in at around 75-85% which demonstrates that the opportunities for continued and sustained retention are there for your business. You just need to make sure you are proactively making the most of them.

What does client retention do for business?

So you’ve got a ‘good’ client retention rate, but what does it mean exactly for your business in the real world? Of course, we know acquiring and retaining customers means revenue but here’s how it stacks up against some of your other key business objectives…

ROI

Investment in client retention produces an incredible return on investment and is therefore a very cost-effective strategy for your business. In fact, it’s been found that in financial services in particular, as little as a 5% increase in retention can increase company profit by more than 25%. In addition you’ll find generally that the cost of acquiring a new customer versus retaining an existing customer is six to seven times higher

Reputation

They don’t say your reputation precedes you for nothing. Word of mouth and personal referral or recommendation is still an incredibly powerful way to do business and shouldn’t be underestimated. The more clients you retain, the more likely they’ll be to organically recommend you to friends and family members, enabling you to benefit from what is essentially free advertising. Brand loyalty and advocacy will go a long way in establishing a good reputation for your business - promoting not only repeat business, but new business as well.

Growth

Reliable and repeat revenue can help to facilitate the important growth that will ensure the longevity of your business. Think of client retention as a future proof strategy that can facilitate new investments and drive profits, securing long-term success for your business.

3 ways to improve client retention for your business in 2023

1. Enhance client experience

We all want to make life easier, and this is no different for your clients. A sure-fire way to make sure your customers are more likely to stay your customers is to enhance their experience with your business and make life simpler in the long run. Think about your onboarding processes, could they be improved, simplified or more user-friendly? What tools and support are you currently providing that demonstrate to your clients that you are prioritising their experience with you?
You might want to think about incorporating video content into their user journey for example, or incorporate a messenger support function on your website - both features that can help your clients to access relevant information efficiently and effectively. It’s also important to consider any previous feedback you’ve received from customers that could help you to review any areas for improvement. Any investment or development required to improve client experience will pay dividends down the line.

2. Streamline communication

Effective communication is integral to client retention. How are your clients supposed to understand the benefits of your business if you’ve not communicated them effectively? Take a look at your communications and other marketing channels, can you streamline any processes that would more directly communicate your services, benefits and promotions?
Look to digital tools and platforms that can integrate your daily business processes and help you to automate and personalise comms. Similar tools can help you to create your own custom workflows and user journeys that ensure your clients are only receiving relevant communication to their journey and the specific touchpoint they are at. By cutting out all unnecessary noise you can create a more personalised experience for your clients, in turn assuring them that your business can meet their specific needs. Streamlining these processes in this way also provides your partners with valuable time to invest back into their client relationships - a win, win for everyone.

3. Build trust

Building trust amongst your clients is invaluable and will be a vital part of that reputation building that will encourage repeat custom and referrals from your existing client base. It’s also an ongoing process that needs to be nurtured throughout the customer lifecycle. This is true for any business, but particularly in the finance sector where your clients are often considering incredibly important and personal life decisions. As such you need to make sure you are consistently investing in your client relationships and continuing to build and develop that trust.
Clear communication will be part of this, so definitely look at how you can implement the previous point in this list. In a similar vein, transparency and honesty will reassure your clients that there are no hidden costs or catches that will catch them by surprise. It can be simple to demonstrate as well, for example; make key service and contact information easily navigable on your website. Highlighting certain business accreditations and features can also contribute to the reputability of your brand and show that you are trustworthy as a business.

Boost retention and build your legacy with DocPortal

DocPortal has been created with all the tools and features in mind to simplify client retention so that you can better help your clients create a valuable legacy for them and their loved ones, and you a legacy for your brand and business.

Easy onboarding
Custom client workflows
Unlimited and secure document sharing and storage
Live chat function
Video
Existing business tool integrations

Want to know more?
Find out why it works here.