Reduce client churn
“The purpose of a business is to create a customer and grow that customer” said well-known management consultant, educator and author, Peter Drucker. (See some of his other quotes in this collection by Jeff Shore featured in Entrepreneur magazine) All too often though, sales consultants and advisors think business growth means getting a new client to sign, and then forgetting about them. The stats tell us that it costs thirty times more to get a new client than to retain a current one. So why wouldn’t you want to spend as much time and energy focusing on building lifelong relationships with current clients, as you would on finding new business? Here are our top five tips on how to reduce client churn and create lifelong client relationships , built on genuine loyalty:
Keep your word
As a financial advisor, you should be repeating the mantra “you word is your honour” to yourself daily. By honouring your word and always doing what you say you are going to do, you will ensure your clients trust you implicitly for years to come.
Make every client feel unique
Making each client feel like they are your only client, is an art. You have to practice making each one feel listened to and really heard, so that they do not feel like a part of a crowd or not listened to individually. Make sure you always customize the solutions you suggest for them to them uniquely, and never generalise.
Treat clients like people, not numbers
Get to know your clients for the people they are, not the business they represent to you. Find out when their birthdays are, and remember to call or wish them. Find out what auspicious occasions they are celebrating in their family or tough times they might be going through, and support them through it. Genuine kindness costs nothing, and it will make them feel like you care about more than just their business.
Thank them, often
We recently did a blog on the art of saying thank you, which focused on how to give thoughtful and meaningful gifts to your clients. Saying thank you, genuinely, builds loyalty and will make your clients feel truly appreciated, an easy yet reliable way to reduce client churn.
Don’t contact them only when you need something
If you took a poll of clients and asked what their biggest irritation with their financial advisor was, we’ll bet the top complaint would be, “they only call me when they need something from me.” All too often advisors will get in contact with old clients when business is slow, or when they want to upsell them something. Don’t be that guy! Contact your clients regularly, to keep in touch, and to simply find out how they are doing. The biggest sales opportunities can come out of the most mundane conversations too.
Be the financial advisor that becomes part of your client’s inner circle, and the only way to create this kind of lifelong bond is to work at it each day. If you’re a financial advisor wanting to be a part of the biggest advisory team in Jo’burg, drop your CV to firstname.lastname@example.org.