The Retention Formula: R x R

20 December 2017 by Shweta Jhajharia

“Business growth is all about lead generation.” I’ve heard marketers say this a lot.

Developing a sales and marketing machine to get a predictable and sustainable lead flow is important. But if you really want to grow a sustainable business, then it’s not just about getting new clients. It’s about retaining the clients that we already have.

In this video, I’m going to explain a formula to help you create some focus and help you do this even better.

If you would like to discuss any of the points covered here, please feel free to request a free call below.

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So how are you going to improve your customer retention strategy? Will you communicate your results to your clients better? Will you foster your relationships more strongly?

Maybe your next quarter should be when you start a calendar of relationship touchpoints to keep more of your customers than any quarter before.

Prefer to read rather than watch and listen? No problem – here’s everything I said in the video as text:

What I want to talk about today is how to have sustainable growth in your business. Now when I’m working with my clients there is a lot of focus on sales and marketing machine and how to systemized their growth. So as you can see on the chart here we have a lot of discussion going around the whole topic of acquisition. How do we make sure that the pipeline is buzzing with the right kind of leads? And obviously there is a good conversion process in place, but at the same time, there is a lot of focus on this topic as well which is retention because I totally believe in this. That to grow a sustainable business, to have a sustainable business, it’s not just about acquiring new clients but it’s really important that we retain the clients that we have.

Now I want to talk a little bit about this one, which is the retention of clients and how does that happen? How can you do that effectively in your business? So you might want to write this down, it’s a very simple formula which is Retention = R x R, okay? And it’s timing. So it’s a powerful formula. Now the first R stands for results and it’s in no order of priority, it’s just to say that the first R stands for results and the second R stands for relationship.

So what we’re really talking about here is Retention = Results x Relationships and what that means is that if you want to retain your clients it’s really important that you deliver on the promises that you have made to them, which is about the results. And what I’ve seen many times in the business world is that business owners are very passionate, very hard-working, and they’re trying their very best to actually deliver the results for their clients. But what goes missing is the communication, the right kind of communication to the clients and also the second thing which is actually seeking constructive feedback from their client saying how can they do better. You know what’s what is it that the clients are actually liking about them.

So under results, if you could just make two notes which are, how are you communicating enough? Are you communicating the results that you’re getting for your clients to them? And the second thing is are you actually consciously seeking constructive feedback in a structured way for your clients? Everything might be great, but you need to give them a platform to communicate any concerns any thoughts or any well done is to you.

Now talking about the second one which is the relationship and again I’ll say the way I see it which is a lot of good intentions out there. Business owners want to actually take care of their clients. They feel good about them. You know they think about them a lot. But the point really here again is that how are you showing it? How are you expressing it? What are you doing in a very concrete in a granular way to strengthen that relationship again and again and again and again? Because remember if you’re not doing that then there are many competitors out there who want to have an entry with your client and it just takes, you know, one bad servicing or someone just making an extra effort, and there you go just getting that client back is such a hard job.

So make sure that you’re not just thinking about strengthening the relationship, but actually, you have some form of hospitality calendar. And again for all clients we truly as I’m working with clients we really focus on the 80-20 clients who are the top 20 percent of the clients who are contributing to 80 percent of their business. And especially for them, the whole idea is to have a hospitality calendar quarter by quarter where all the touch points. It could be just a phone call. It could be a nice postcard. You know a book, a game, just going out for lunch or dinner.

It’s not about how expensive or inexpensive the act is. It’s about actually making an effort and translating that into the real thing for your client to show that yes that relationship means a lot to you and you are really the best. At the things that you are doing for them. Because remember, Retention = Results x Relationship.

If you would like to hear more about this please feel free to get in touch below.

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Shweta Jhajharia

Shweta Jhajharia is one of the leading authorities on Business Value Building and the creator of the unique 6M Model. Shweta is widely respected as an impactful, intelligent and results orientated professional who helps business leaders unleash their potential to reach meaningful, higher objectives. This realisation of potential and maximisation... Read more