17 Sep Can We Predict Which Clients We’re Going To Lose?
Can We Predict Which Clients We’re Going To Lose?
Yes we can. In fact, the technology developing around this area is profound and fast moving. Here’s the vision:
As a senior executive, you arrive at your desk early Monday morning, get your coffee and launch a program on your computer that lists all of your clients and provides a real time dashboard as to what the risk of defection is for each one. With this information, you have the ability to allocate people and resources to take action to immediately stabilize the situation and reduce the risk of loss. You’ll do whatever it takes and you’re confident in this program because you know it’s based on accurate and timely data that has been specifically tailored to your business model.
If your company is committed to executing The Clients for Life® Client Retention Process and capturing the results, we believe you’re ahead of the curve. There is a full range of options as to how we weigh the individual factors, but here’s what we know about how the individual risk data points line up. With apologies to Jeff Foxworthy, you’re probably at risk if:
The client does not conform to your Right Clients / Right Terms® criteria. The further outside the boundaries they are, the greater the risk.
We are reporting specific “Warning Signs” which we had developed in the Lessons Learned facilitation.
Prescribed “Action Steps” in response to the “Warning Signs” have not been taken or have been ineffective thus far in eliminating the threat.
An effective Transition Meeting™ or Expectations Session™, including all key members of the Web of Influence® has not been conducted or is overdue.
The expectations elicited at the meeting are not sufficiently specific and measurable and / or have not been adequately prioritized.
Quarterly reviews which detail specific performance and progress against the key expectations have not been conducted, are overdue, are not adequately attended or do not document sufficient results.
The Web of Influence is not fully formed and / or the relationship responsibilities mapped by the connections are not being managed or maintained such that trust and rapport are evident.
There is a high and abnormal velocity and frequency of people changes within the Web of Influence.
Effective Transition Lite™ Meetings have not been conducted or are overdue with client contacts that have changed.
Our Revelation X™ analysis clearly reveals the existence of a Value Gap.
We have not documented specific innovations added to the expected service level.
We have failed to erect barriers to exit from the contract and / or barriers to competitive entry.
We have not conducted a FreshEyes® Review with the client within the past 24 months.
We are with 18 months of a fixed-term contract expiration and have not fielded a TARP™ (Team Account Retention Planning) session to develop the renewal strategy.
Almost certainly, there are additional risk factors that you can point to from experience that signal to you that a contract is in trouble. But we know, from years of experience, that the key touch points and disciplines of Clients for Life make a profound difference in helping you keep the clients you’ve worked so hard to get. Failure to execute them increases your risk – simple as that.
Tenacity is not in the CRM software analytics business, but we have partners who are. We also have clients that have both built proprietary systems to track Clients for Life and have adapted commercially available platforms, such as salesforce.com and others to provide the critical data. The bottom line is that analyzing and understanding the status of the key elements of Clients for Life can readily predict the risk of client defection and allow senior executives to productively allocate resources to improve retention.
After all… it’s still the Information Age, right? Of course, it’s what we do with the information that counts.
John & Steve