Did anyone tell you how hard it is to run a business?
Nobody told us!
Once you get over the learning curve of how to start your own company, the next thing you have to learn is how to keep it going.
Figuring out how to attract clients to your business is tricky. Mainly because it’s a different path for everyone.
The customer journey is complex and bumpy. Between ads, social media influencers, and black hat marketing tactics, it’s hard to know who to trust.
That’s why it’s your job to make their journey to discovering your business as smooth as possible.
Here’s how you keep your inbox full of prospective clients and improve client retention.
What’s Customer Retention?
Customer retention is your ability to keep and maintain clients in a given time period.
Customer Retention Rate (CRR) is the metric that defines how well your business can keep its clientele. Here’s the formula to figure out your retention rate:
Determine a time frame to analyze.
Write down how many clients you had at the start (S for Start)
Write down how many clients you had at the end (E for End)
Write down how many clients you gained between the start and the end (G for Gain)
Now do the math:
E-G / S x 100 = Customer Retention Rate (CRR)
Here’s an example:
Clients at the Start: 10 (S)
Clients at the End: 22 (E)
Clients gained between: 15 (G)
In school, this would mean your business has a C- in Customer Retention Rate. Thankfully this isn’t school, and a 100% CRR is pretty rare.
Across all industries, the average CRR is 75.5%. This number varies across industries, with the highest customer retention of media and professional services at 84%.
How To Attract Clients to Your Business
Since you’re here to learn how to attract clients to your business, we’re going to assume you’re in the professional service industry. If your CRR “grade” is lower than you would like, don’t worry! We’re going to show you how to get some extra credit.
Here are 3 ways to attract new clients:
1. Provide Free Content
We all like free stuff, especially when making a purchase. That’s why almost every e-commerce store has a discount pop-up on their website (you might have seen ours!).
When it comes to professional services, free stuff is given in the form of:
Educational YouTube/TikTok videos
Template or eBook
Audit or consultation call
The freebies are what initially attract clients to your business. You can get them to stay by moving on to #2.
2. Give Your Business a Personal Touch
You may be familiar with this famous Dale Carnegie quote,
“Remember that a person’s name is to that person, the sweetest and most important sound in any language.”
You can make your business seem less formal and more casual by talking to your potential clients, audience, or customers like you know them well. All it takes is using their name in:
- Social media comments, or
- During a discovery call.
If you’re looking for a way to keep your existing customers (and get that extra credit for customer retention), client gifts are the way to go.
And they’re tax deductible.
Whether you want to send your client a birthday gift, or passively send your clients surprises, your clients will appreciate the personal touch.
3. Show Them What They’re Missing
Did you know that 88% of consumers say authenticity is crucial when deciding what brands they like and support? Likewise, 66% of consumers think transparency is one of the most attractive qualities of a brand (Oberlo, 2022).
If you want to know how to attract clients on the fence, you need to give them a behind the scenes at what they’re missing.
Whether that’s showing them how you operate day-to-day, sharing client success stories, or showing your clients opening their fancy gift boxes, FOMO is a powerful marketing tool.
How To Improve Client Retention
The importance of client retention can’t be overstated. No matter your industry, you’re likely up against some steep competition.
Keeping the clients you already have shows that your company is a force to be reckoned with in the market, and it’s also just less expensive. Finding new clients takes up a lot of pressure commodities: time and money.
When you can’t afford to lose either, here’s how you can improve client retention:
Under promise, over deliver.
Send gifts for birthdays, holidays, or work anniversaries.
Keep providing free value to your existing clients.