There’s a go-getter mentality among industrial leaders that can lead to an over-emphasis on generating new leads when taken too far. Don’t get it wrong. The ability to generate (and convert) leads on a regular basis is essential for success. However, a hyper-focus on acquiring new customers can keep managers from investing in one of their most valuable assets: current clients!
The Value of Repeat Customers
It’s an industry-wide misconception that new customers bring in the most money for companies. While that might be true in certain circumstances (i.e. if you’re just starting out or don’t have any current customers), the numbers clearly indicate that the companies you’re working with right now are a treasure trove.
Repeat clients pay more.
A whopping 61% of small-to-medium-sized businesses earn over half of their total revenue from repeat clients. You read that right! For the majority of companies, convincing a customer to spend more generates more income than converting a new client.
New customers are more expensive.
On top of spending less than current clients, new customers are also more expensive to acquire. In fact, research suggests that bringing on a new client is going to cost your company 5-times more than simply getting repeat work.
Higher retention means higher profits.
You don’t need to maintain a high customer retention rate to be successful either. If you can convince just 5% of your current business to stick around, you could see profits jump by a staggering 75%!
How do you create lasting client relationships?
Understanding the importance of recurring clients is one thing; making sure they stick around is another beast entirely. In short, you want to make the experience of working with your business so unbelievably pleasant for clients that they couldn’t imagine NOT calling you up when the next project rolls around. We’re going to assume you’re already delivering services of superb quality, so let’s focus more on relationship-building.
Further Reading: Why You Should Be Picky About the Clients You Choose
Add a personal touch.
Every human relationship is personal by its very nature. That’s why trying to keep everything “buttoned-up” can come across cold and unwelcoming to clients, especially during longer projects. Bringing a personal touch to the dynamic can build a bridge over the professional gap which makes clients feel understood and at ease. You could share things about yourself, ask about their personal lives, and bond over similar experiences. Just be authentic!
Formalize customer service.
Customer service matters in the construction industry because it sets the tone for client relations. Customers remember every single interaction they have with your business from the first email or phone call to the project finalization and everything in between. That’s why it’s crucial to ensure every member of your team is trained to provide top-tier customer services. You’ll see the payback in happier clients, better reviews, and smoother projects.
Go above and beyond.
This one is admittedly vague but pretty self-explanatory. Every amount you’re willing to go above and beyond the call of duty increases the likelihood that your clients will work with your company again. Whether it’s accommodating a last-minute change without pushback, speeding up the project delivery timeline, or offering discounts for future projects, all these little (and big) gestures contribute to long-term success with clients.
Talk with clients directly.
It’s not feasible for project managers to handle every interaction with every client at all times. However, don’t let that become an excuse to delegate every conversation. You should be checking in with clients regularly and handling pressing discussions such as contract disputes. This shows clients that you take their concerns seriously and are interested in establishing long-term relationships.
Stay in touch
When you finish a project for a client, you effectively have a warm lead for the future. This previous client knows the quality of your work and trusts your employees. Staying in touch with them keeps the lead from going cold. Whether you want to offer ongoing support or simply check in to see if they’re satisfied with the results, this ongoing interaction will make it easier to convince prior clients to become paying customers again.
You can’t worry about building relationships with clients until you have the right team of craftsmen! That’s where Madden Craftsmen can help. We have decades of experience providing leading industrial employers with talented and qualified employees. Take a few minutes to fill out a job order. You’ll get matched with dozens of best-fit candidates!
