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What Is Client Retention? And Why Is It So Important?

Updated: Jan 31

Your best clients are the ones who come back again and again to purchase more of your products or services. Client retention is a crucial part of any business because it increases value, helps build client relationships, and boosts your revenue and bottom line.

So what does client retention actually mean? And what types of client retention strategies should you use for your business?


Client Retention Defined:

Client retention is defined as the engagement of existing clients to continue buying products or services from your business. The best client retention strategies help form lasting, loyal client relationships.


Why Is Client Retention Important?

Client retention is much more cost-effective for your business than client acquisition. It’s far easier and less expensive to retain the clients you already have than to acquire new ones, mainly because an existing happy client is more likely than a new one to buy your products or services.


To top it off, your loyal clients are much more likely to give any new products or services a shot, and even recommend them to people they know. Word-of-mouth is a great client retention tool as well. Having someone vouch for you means that you have already been vetted as reliable, high-quality, and trustworthy.


Now that you know that client retention is an important part of your business, how do you achieve higher client retention?


Here are a few proven strategies to get you started:

  • Make an Unforgettable First Impression: If a client doesn’t have a positive first experience purchasing your products or services, they probably won’t come back to buy more. Ensuring that their experience from purchase to delivery is as smooth as possible will make them want to come back. Also, be sure to send a personalized thank you card to let them know how much you appreciate their business. Personal touches go a long way towards making them feel like you care about them.

  • Understanding Your Client's Why: The journey from potential client to current client isn’t always a straight line. Understanding why they chose to purchase your products or services over your competitors will give you the necessary insight to better market them moving forward.

  • Keep Lines of Communication Open: Without constant communication, relationships deteriorate - as they say "out of sight, out of mind." Make sure they know that you are thinking of them and care about their experience with your products or services, and in turn, your company will stay top of mind. Keep in touch using emails, texts, cards, and calls periodically and consistently to let them know that you are there for them if they need anything. If you need any help doing this, reach out to me and I can help set you up with some amazing easy tools that help you do just this.


Client retention is an ongoing process that takes some time, it won’t just improve overnight. However, if you set up client retention strategies using the tips above, you will be surprised how your retention rates will increase. For more tips on client retention or client appreciation strategies, check out my blog and find more content like this recent post on How to Nurture Client Relationships.


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