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Client retention

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  • 1. PREPARE YOURSELF FOR SUCCESS!© Y O U R G R O W T H D E P E N D S O N R E D U C I N G Y O U R AT T R I T I O N R AT E !
  • 2. Webster defines as a natural & gradual reduction In business, Attrition is defined as a loss of customer, revenue & profit To grow 15% this year, you need to first cover your attrition rate
  • 3. Profit Risk Factor: To acquire 20% new customers this year, you need to first cover your attrition rate On average, financial institutions lose 15% of their clients each year Your goal in reality becomes 35%
  • 4. FOUR principles to customer retention
  • 5. 1. Recognize your top clients and measure your brand loyalty Artwork by Hugh MacLeod
  • 6. Your brand is not an asset But the brand is the true asset to the company
  • 7. Make a difference & be different Your clients want to generate loyalty
  • 8. Understand the unique characteristics of your best clients to help you better understand their needs and requirements
  • 9. Engage customers with lifestyle events
  • 10. Capitalize on data you have to better understand relationship profitability and engagement practices
  • 11. A loyal customer is an advocate who actively endorses or recommends your product Do you know who are they?
  • 12. 2. Be engaged & Cross-sell Successful cross-selling or upselling is to focus your efforts on meeting the customer’s needs, rather than simply pushing more products & services Artwork by Hugh MacLeod
  • 13. How can companies identify needs that customers themselves may not recognize? VOICE OF THE CUSTOMER “Companies can identify needs that customers themselves may not recognize through empathic design.” (Harvard Business Review) Empathic design means to understand a customers need thru observation. Watching customers use products or services in their own environment, in the context of normal, everyday routines. It is necessary to both listen to what customers say they do and observe them in their natural environment to uncover their true behaviors & processes.
  • 14. If you overload customers with too many crossselling suggestions, you may lose the entire opportunity.
  • 15. THE CUSTOMER Understand their circumstances & needs Be fair to their needs and not yours Customers don’t care about policies, they want reasonableness Never say “NO”
  • 16. Did you know! Regular service/product bundles don’t work anymore! Lifestyle Solution Bundling It requires to imagine the client/consumer not as a target with a particular demographic profile, but as an individual with stresses, problems, needs & desires, some of which they might not be aware of
  • 17. Listen to what your are saying about you online Listen and identify your Connect via social media & strategize to • Be engaged • Be interesting • Be Authentic & Transparent • Be committed
  • 18. 3. Reaching out Your marketing goal is not to attract buyers, but to convert buyers into loyalists, into enthusiasts and evangelists
  • 19. Integrate a Relationship Expansion Plan TO INCREASE STICKINESS Build several relationships with the client’s organization. Expand & deepen your existing relationship with key individuals who play different roles Hello yes Hi
  • 20. Do this first by connecting to your client’s agenda and be agile in talking about their business issues – and then build trust in your ability to help address them
  • 21. Acquisition vs. retention This picture sums up the way we all do business!
  • 22. 4. Track & Monitor Everything must be tracked and monitored to ensure a successful relationship with top tier clients
  • 23. Monitor & track your current churn/attrition rate is. Companies with higher retention rate grow faster. Knowing how many are defecting & why is the reflection of knowing how many are staying & why.
  • 24. Customer Retention Equity Monitor your CUSTOMER RETENTION EQUITY, which is defined as the total of the discounted lifetime value of all the firm’s customers In other words, a firm is only as good as its customers think it will be the next time they will do business with that firm. Keeping one existing customer is 5 to 7 times more profitable than attracting one new one. Lifetime Value
  • 25. SHARE OF WALLET & POTENTIAL WALLET VALUE Customer wallet is defined as the total amount this customer can spend in a specific product category. The share of wallet then is how much they spend with a particular seller. By understanding the total wallet & share of wallet you can identify which customers are the most “loyal” & which customer have the greatest growth potential
  • 26. Measure & monitor CUSTOMER TRUST Trust is build through frequent interactions How are you measuring customer trust? And when was the last time you mapped all your customer touch points & the frequency of interaction per touch point? The most important factor in building trust is “Quality products & services.”
  • 27. Track CUSTOMER LOYALTY Behavior is more important than attitude. Customers show their loyalty by the direction of their feet. Are your customers staying or defecting? Do they serve as advocates ? Do they proactively endorse your company? What customer behavior can you measure to DEMONSTRATE the company is improving customer loyalty?
  • 28. PREPARE YOURSELF FOR SUCCESS! © Aris Jerahian aris@slendeavor.com (800) 930-3130 An executive with more than 20 years of client management, consulting and operational experience which helped establish long-term, successful partnership with major corporations. He is the author of “Courage to Change,” which aims to help readers improve both their professional and personal lives, and serves as a council member on the Council of Advisors for Gerson Lehrman Group, a global network of executives who provide consultation to investment leaders. Aris is the managing partner at Social Link Endeavor. Please contact our office for the complete presentation material or speaking engagements.

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