Relationship Management: Retaining a Client

It's part of good relationship management: retaining that important client. I had a couple of lessons this week that helped me understand this concept.

Statistics show that it costs more to gain a new client that it does to retain a client. Plus the longer you have a client, the better you understand their business, their markets and the people inside and outside of the company.

My lessons centered on these points:

• When a client calls or asks, you respond and deliver without question
• Be honest, if you can't do something, tell them what you can do
• Incumbent clients come first before prospects

In a weekly meeting with my largest client, I was asked for a specific answer to a detailed question. I had another opportunity I could have pursued between when the question was asked and when it was to be answered, but I dropped that situation because I needed to commit time to the incumbent.

The honesty cam in when I had to tell that prospect I couldn't help them. But I didn't jsut abandon them: I found some alternatives and put them in touch with some suggested partners who could deliver the quality they deserved. All without charging a few (I want to have the chance to work with them again).

My commitment is with my existing client. They hired me in good faith and I need to deliver. The prospect was just that: unproven to each other, the work could go away and so would the unattended work with the incumbent.

I made a choice. Do you have similar situations?

Relentless

The Triad

In a conversation with my consultant-mentor Francisco Escobar last evening, we discussed why and how clients do business with you. At least we talked about the elements of the process.

We came up with these three "steps" that people go through when choosing to do business with an individual or client:

• Gaining or having credibility.
• Earning a level of trust.
• Dependency.

Having credibility with a prospect is what turns them into clients. Or at least starts the discussion. If you can cite previous, successful work, then they are more apt to have the next conversation with you.

Being trusted is why someone chooses to sign a contract or a check for you to do work for them. When they trust you with their business problem or challenge, that's when you are now doing business. This also gives you the perspective to provide your now-client with an objective point of view.

Dependency is a bit too strong, but really describes when an established client views you as indispensable when it comes to getting certain tasks or work done. This usually means you are in it with them for the long haul. Your presence gives them increased bandwidth.

Consider these steps or levels as you work with your clients or customers.

Relentless