Five ways to strengthen client retention

There are many reasons for having an effective client retention strategy. For one, it is less costly to retain existing clients than it is to find and recruit new ones. Further, existing clients are generally less resistant to new product offers, less sensitive to fees, and often more receptive to new ideas and service improvements that would enhance their relationship with you.

Clients are at the highest risk of leaving in Years 2 to 4, Andrews says. And, when clients leave, they do so usually because of issues such as investment performance, lack of communication and poor service. However, once you have retained a client for at least five years, you are likely to “keep them for life,” he says.

Therefore, your client retention strategy should focus primarily on clients who have been with you for one to three years, Andrews says.

Below are five strategies for strengthening client retention:

1. Deliver on your promises
Set ground rules on what you promise to provide to clients and make sure they understand what you can deliver.

“There is often a mismatch between what clients expect from you and what you actually promise to deliver,” Andrews says.

To be doubly sure you are meeting your clients’ expectations, ask them direct questions, such as: “Am I meeting your expectations?” and “Is there anything else I can do?”

2. Look beyond investments
Deepen your relationships with your clients by looking beyond their investment needs, Andrews says. Demonstrate a sincere interest in their personal affairs, such as their families and their jobs.

Try to keep learning more about your clients through an ongoing discovery process, client reviews and casual conversations. Ask if there is anything more you can do to help. You will be taking steps toward earning their trust and confidence, which will increase the likelihood that they will stay.

3. Contact your clients frequently
Stay in touch with your clients through the communication methods they prefer.

“Your communication strategy should be appropriate for all stakeholders,” Andrews says.

You also can connect with them through social events or client-appreciation events, or by sending them tokens of your appreciation. And be sure to let them know you are available should they need to speak to you.

4. Ask for feedback
Engaging your clients through formal or informal feedback initiatives will show that you respect their views and contribute to a stronger relationship. Soliciting feedback also shows that you are willing to listen to them.

5. Offer a wide range of products
Clients are less likely to leave when they hold several products with you, Andrews says. Strive to provide them with a complete range of products, which might include registered and non-registered investments, education plans for their children and insurance.

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