Clients Migrate unless you take action

How and Why do you lose Clients?

If you had to rate your team’s knowledge of your Clients and their true needs, how well do you think you’d rate on a scale of zero to ten - with ten being a ‘true partnership’. 

Most think they know their Clients very well and score themselves highly.  However, research into their Clients’ attitudes and feelings towards the service provider can tell a very different story.

Why do your your key Clients migrate?

You may have lost Clients at some point for no explicable reason

Have you ever experienced this situation?  You may have  believed that your relationship with your Client was rock solid and that they would never consider going to anyone else but you, and something unexpected happens and your supposed Loyal Client transfers their loyalty to some one else.

Did you spot the wraning signs?

Did you see it coming?  Were there warning signs?  Did you see the signals that the Clinet was about to transfer loyalty, chosen ­not to maintain their relationship with you, failed in renewing their contract with you, and then out of the blue, migrated elsewhere?

Map for Predictive Migration Behaviour

Perhaps your experience has not been as extreme as this.  Perhaps you knew that the Client was uncomfortable but decided not to pursue this with your Client, and then ‘bam’ they are gone and you don’t know why?

Clients take years to become loyal advocates of your Service and seconds to lose

Invest more in Retaining Clients rather than seeking replacements

Do you know how much it costs to replace your Clients?  Here I am not talking only about money, but, rather the time taken to win new contacts, turn interest into potential prospective Clients. and then winning your first opportunity to sell your services. 

In some industries such as retail companies can experience customer loss of 25-40% per year. 

Loss of Clients in SME's 

If you provide Professional Services losing even a few Clients can have a huge impact.  I know of such businesses that were deeply impacted when long term Clients decided to migrate to ‘lowest-cost’ suppliers of the service. 

Even though the new suppliers were huge companies with big overheads they were prepared to initially back ‘loss leading’ business with the prospect of deeper penetration, long term continuity and growth with their new Clients.

Failing to Spotting the signs of Migrating Clients

You see, most service providers do not see the distressing sign of potential migration to competitors until it is too late.  They are literally blinded by their pseudo ‘positive relationship’ to consider anything else but a continuance and flow of business and loyalty. 

And when questioned as to, ”what caused them to migrate?” Clients often don’t know the answer.  And then when asked, how do they currently meaningfully track their Client and Customer satisfaction?  I often get the response of silence or ‘hunched shoulders’. 

So it may be time to think about your Firm or Organisation and ask some questions.  Here are some I examples.

Client Risk Assessment

• How do you know when a Client is dissatisfied with your service?  How do you measure it?  What metrics are effective predictors for you to take preventative or corrective action?
• If your Client does not tell you openly, how do you track their attitude towards you?
• How many Clients are you currently at risk of losing and which particular one’s are you focusing upon?
• What signals or metrics do you measure and are you sure that your colleagues’ subjective judgment in your Firm of their Clients is giving you an objective and fact based opinion?
• How do you undertake a ‘risk assessment’ of those most likely to migrate?
• Currently, how do you assess ‘relationships’ with your major Clients who contribute 80% to your Firm’s income or profitability?
• How do these Clients (above) perceptions compare to other service providers who are your competitors?
• What action is taken with those Clients you are at risk of losing?
• How well versed in meeting ‘Client expectations’ are your staff who are not Client facing but provide some input in order to service your Clients?

Diagnostics: Customer Focused Strategy

I have spent a lot of time working with my own Clients to help them resolve their Client problems.  I discover fascinating evidence and facts that they will never uncover because they don’t ask the right questions. 

 I establish a detailed analysis and perceptions of what it is like to receive the behaviour and the service from their Clients. I experience a lot that my Clients do not, and learn a great deal about what make their Clients and Customers tick.

Did you know that if Clients are unhappy with the service you provide it is very likely that they never tell you about it?  What they do instead is scout around for other providers.  This is a common malady shared by many Firms and one that can put your business at severe risk. 

Are you brave enough to ask what is not working?

If you are not asking questions of the quality of service you offer to your Clients, you can be sure your competitors are.  Is your Client base aware that you are very receptive to changing how you provide service to be just the way they want it?

When things and the tide changes such as with the current recessionary climate your Clients’ mindset changes.  Are you aware of just how much your Clients are hurting and what you could provide to do a better job.

Philip Atkinson & Client Acquisition, Retention & Capture

1. Scoping the Client Focused Project

• Outline and agree project (objectives, processes, timescales etc)
• Assess Client groupings and choose Clients for review
• Develop strategy for feedback and agreement
• Draft content of review (specific and supplementary questions)

2. Field Work, Diagnostics & Data collection: What do your Client really think of you?

• Internal research of Client company (interviews, process maps, group discussions etc)
• Preparation for interviews
• Client visits and interviews
• Analysis of Migrated Clients
• Questionnaires  

3. Plan to Acquire, Retain more Clients

• Information and feedback collated
• Confidential report prepared and presented
• Issues identified and actions agreed
• Develop tracking process and risk assessment and apply to Client base
• Implementation plan drawn up

4. Working on your Culture & Processes to turn Clients into Loyal Advocates

• Agree composition of steering group and individuals to oversee implementation of changes
• Implement strategy, building in regular reviews
• Feedback to clients on actions being taken
• Provide Coaching & Training to create a Client Facing Firm or Organisation