Retaining Clients in a small business

[Vincent79]

I run a small consultancy business on my own and would appreciate people's thoughts on retaining clients these days. From time to time I lose clients but it is getting more difficult to replace them. I have always focused on doing a good job for them but that does not seem to be enough these days. I have always maintained good relationships but do not have the spare time or money to entertain them as have to work 6 days a week to make the business viable as fees in my field have not gone up for years. Any thoughts?

 

[Gecko001]

Hobnobbing with clients can work and many consultants do it, but it is not for everybody. You need to know what the boundaries are. Also, you need to know what is the custom in your particular sector. Often networking and getting your name known rather than directly entertaining clients might be better.

 

[KM-Tiger]

From time to time I lose clients ...

Do you know why?

 

[ethical PR]

Do you have a marketing plan in place to retain existing clients and gain new ones. If not this should be your starting point.

Marketing Donut is a good site for small businesses wanting to understand how to develop a marketing strategy and various aspects of on and offline marketing.

As a consultant you will understand the value of having consultancy support on board. If you don't have marketing experience, then look at getting a marketing consultant with experience in your sector and of reaching your target customers to help you define your key selling points and put a practical action plan in place to retain and extend your customer base.

 

[Vincent79]

Do you know why?

I think they want me to give them all my time and attention but have to split it amongst several clients. Definitely limitations being a one man band.

 

[Vincent79]

Do you know why?

 

[fisicx]

But why do they need all this attention? Is the service you provide not automated to the extent that they can self manage?

 

[KM-Tiger]

I think they want me to give them all my time and attention but have to split it amongst several clients. Definitely limitations being a one man band.

Then you probably need to manage that better.

Easier said than done, as I well know. One's instinct is to go the extra mile for a client, with the aim of retaining them because they get good service.

But then they come to expect that, and are disappointed if you cannot deliver.

The solution, which goes against instincts, is to be much more forthright about what they do and don't get, and when.

 

[Jim2k]

We've been very fortunate to retain the large majority of our clients over the years. The primary reason for that has to be the level of service delivered, but also going the extra mile and really building the relationship so that you feel part of their team. One of our straplines is "Like having your own in house IT Team" and that's what we like to do. We couldn't do it without taking on staff, sometimes more than we actually need at that point in time, so we can keep the service levels high, ensure staff are well trained and still go the extra mile.

Have you thought of taking on staff to ease the pressure on yourself?

 

[Gecko001]

Some clients will have a policy of getting a certain service from two or more consultants. For instance they may have several projects running at once and they use maybe two consultants dividing the projects between the two of them. It is just the same as a manufacturer using two different suppliers.

It certainly keeps the consultants on their toes as if one consultant does not appear to perform well on a project they get another consultant and give them a try. Remember "being dropped" in these circumstances is not always terminal. I have "been dropped" only to get a call from the same client two or three years later and get several more projects from them.

PS. You have to be aware that many clients will not know exactly what service a consultant will provide and often their expectations and demands are higher than even the best consultant in the field can provide. That means that often clients can be disillusioned and try someone else only to find that the first one was actually not all that bad after all.

 

[Vincent79]

But why do they need all this attention? Is the service you provide not automated to the extent that they can self manage?

Unfortunately not in my field.

 

[Vincent79]

We've been very fortunate to retain the large majority of our clients over the years. The primary reason for that has to be the level of service delivered, but also going the extra mile and really building the relationship so that you feel part of their team. One of our straplines is "Like having your own in house IT Team" and that's what we like to do. We couldn't do it without taking on staff, sometimes more than we actually need at that point in time, so we can keep the service levels high, ensure staff are well trained and still go the extra mile.

Have you thought of taking on staff to ease the pressure on yourself?

Business revenue too low to take on staff, work with the hospitality sector that has been hit particularly hard over the last 5 years. I produce business reports for independents, mostly disorganised ones may I add. It takes time to put my figures together and fees are low around £120 per job. Little room to increase fees but have had to take on more work to keep this worthwhile. Any thoughts here?

 

[fisicx]

Unfortunately not in my field.

OK, so what is these people need so urgently?

 

[Vincent79]

OK, so what is these people need so urgently?

Reports on business profitability etc but most independents are so disorganised that I am constantly missing paperwork and have to contact their suppliers for invoices etc which all takes time and increases turnaround time. Do not charge extra for this, bit of a Catch 22 here really.

 

[Jim2k]

If it takes time to put together your reports etc, and each job is around the £120 mark, are you sure your pricing is correct? What would your hourly rate work out as - is it enough to run a business on?

 

[Vincent79]

If it takes time to put together your reports etc, and each job is around the £120 mark, are you sure your pricing is correct? What would your hourly rate work out as - is it enough to run a business on?

Work on fixed fees which equates to around £20 per hour, however some jobs can take much more time than expected and mostly deal with small clients who are on the whole fairly disorganised. Do not charge anymore for this the days of surcharges are long gone. Some do want quick turnarounds but have to wait if their paperwork is not all there as am on the road 6 days a week, but they do not seem to really understand this and this is part of the retention issue.

 

[Ashley_Price]

Firstly, you can no longer rely on what I call "passive loyalty". This is where the customer has used you before and, because they got a good service, they will come back to you. This doesn't always happen. By the time they get round to needing your service again, they may well have been introduced to, or met, others who do the same as you, and having been in regular contact are likely to go with them.

So, you need to create "proactive loyalty". This is where you put in the work. Keep in contact with them, just pick up the phone, send them a personalised email (not just a Round Robin that goes to everyone). This only needs to be about once a month, so not a huge call on your time. But make sure these are just general, finding out how they are, how business is, how what you consulted them on is doing, and so on. Don't make it all about how you can help them again (unless of course they've contacted you).

But another thing is "current job/next job", while consulting with them on one project you should keep an eye out for something else you could help them with. You then mention it in passing. (e.g. a landscape gardener who is re-turfing a lawn mentions that the nearby garden wall could do with repointing.)

Anything you can do that keeps you in their minds, is going to help in the long run. It seems a lot of work... but then if you're not doing it now, and they're not coming back to you, maybe this is one of the reasons why.

 

[tony84]

Are you sure you can not up your fees? Have you tried?

The reason I ask is that in my industry there are mortgage brokers who charge the client £0 and mortgage brokers who charge the clients £2000 and everything in between. Based on your post the people who charge anything should be out of business? I charge between £500-999 in the main and rarely have any issues.

 

[lloydsolutions]

Maybe have another look at your pricing structure and quote a standard fixed fee and a separate fee for extras. A good way to get more clients is to ask your existing clients for referrals.

 

[ElliotStephens90]

I find, sending the odd email or quick chat is something that can help maintain a good relationship.

E.g if I have some good stats or a good win, I'd make sure I that client a short note about it, which I'd expand on in our monthly report.

 

[Samaksh]

The only way to know your customers and their needs is by asking. Asking them to fill out a survey based on their needs can help put your business plan and customer service into perspective efficiently.

 

[Yeongwonhi]

There are several techniques you can use to be able to retain your hard sought customers.

However, it seems as though the problem comes from you not having that much time to cater to them as you mentioned you work 6 out of the 7 days in a week.

I think this is the time you must resort to outsourcing. This is where other people can take care and look after your business on your behalf. UnderstandingE's video tutorial courses about Outsourcing helped tremendously.

You can go ahead and visit their site and give their tips a try.

All the best!

 

[Ola1]

The fee you quoted is very difficult to make work, Are you certain its a fair amount ?