Happy clients are return clients. This we know. And significant research shows that keeping customers as opposed to seeking new customers can have a real impact on your bottom line. According to a Harvard Business Review article, “acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one. It makes sense: you don’t have to spend time and resources going out and finding a new client — you just have to keep the one you have happy.” The same article cites research from Bain & Company that shows increasing customer retention by just 5 percent can increase profits 25 to 95 percent. Here are three ways to tell if you have a happy client:
When your clients are happy, they can be your firm’s most prominent ambassadors, so making it easy for clients to leave you reviews is in your firm’s best interest. Whether it’s via an online review or a one-to-one referral, a happy client will be sure to spread the word. Bill Macaitus, the Chief Marketing Officer for software company Slack, sets a high bar for client satisfaction. He “is not fully satisfied if someone signs up for Slack. He is not fully satisfied if someone becomes a paying customer. [His] bar is will someone recommend Slack?”
According to this American Bar Association article, there are added benefits, including a better understanding of your firm’s competitive position. “When asked, clients will often share what they think other firms are doing that the law firm asking for feedback should consider. It’s also eye-opening to hear a client’s perception of the firm’s scope and reach. Frequently, the client only knows a little bit about what the firm offers, not the full extent.”
Generally speaking, you won’t know if your clients are happy unless you ask. But you will definitely know if your clients are unhappy. Communication and keeping clear and open lines of communication with clients is really the best way to know if your client retention is a cause for concern.
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