50 / 30 / 20
Tenacity believes in the principle that 100% client retention is possible and should be the goal of every client we work with. Over our 30 years in business, Tenacity itself has achieved that goal – having never lost a client for cause or been replaced by a competitor (if indeed there was one to be found). In fact, several of our clients have been with us for the full 30-year ride – and as long as they find value in what we do, we’re confident they’ll stay as loyal to us as we are to them.
The aforementioned 100% is reliably apportioned in the ratio of 50% / 30% / 20%, corresponding to the three major elements of The Clients for Life® Client Retention Process:
50% – Our experience has consistently been that a company can cut their client losses in half based on senior management’s willingness to take ownership of the elements of client retention strategy. This requires that they define, publish and adhere to the criteria they have agreed define their specific Right Clients and Right Terms. There is no more important decision or action governing the success of a business than this.
Concurrently, senior management owes it to the organization to define and teach them the “Lessons Learned”. As the most knowledgeable and experienced people in the company, they can be facilitated in specifying the actual reasons that clients have been lost in the past, listing the “Warning Signs” that these reasons may be occurring and delineating the “Action Steps” they expect the organization to take when these signs are apparent.
If senior management consistently fulfills these obligations to their people, they’re half way home to 100% client retention.
30% – A company’s willingness to invest in training their client-facing managers in proven best practices around account management and client retention can help them take the next 30% step. Tenacity believes these best practices are centered around three primary areas: 1) Understanding and Managing Client Expectations, 2) Nurturing Professional Relationships, and 3) Administering Technical Delivery (managing Revelation XSM).
20% – The final step involves investing in an independent third party to objectively interview their key clients and separately, conduct a forensic analysis of any clients that have been lost. When a company collects and assimilates good data around how they are performing and being perceived, then positively and appropriately responds to that data, systemic improvements are certain to take root.
“Client retention demands a formal process. If you leave client retention to chance, the chances are you’ll lose the clients you’ve worked so hard to get.” (John Gamble)
100% client retention not only demands a formal process, it mandates one – the one that has been proven to work – but only if you work at it.
Steve & John