How to Increase Client Retention for Knowledge Professional in 5 Steps

Introduction

As a knowledge professional, the majority of your sales and marketing activities are likely to be carried out with new client acquisition in mind. While this is perfectly understandable, the true key to sustainable business growth lies in your approach to retaining and nurturing the clients you have already worked so hard to convert.

It holds true across numerous professional specialties – from coaching, to advisory and consulting, that the cost of new client acquisition can be 5-7x higher than the cost associated with the retention of existing clients, and driving expansion revenue through the strategic use of upsells and cross-sells. When your retention strategy is to your clients’ liking, chances are they’ll also be less interested in your competitor’s service offerings.

While client retention strategy is frequently overlooked it’s actually a crucial driver of long-term profitability and growth for professionals with an online presence.

Before I begin this post, it’s important to emphasize that a client retention program is difficult to execute well and client churn is a much more significant issue than many businesses perhaps realize. This is illustrated by a survey from Gitnux which found that the average business loses 15-20% of its customers annually. However, the cost savings on offer and the potential for improved customer loyalty and advocacy is sure to make your retention initiatives worthwhile.

1. Set clear and transparent expectations from the outset

Unclear expectations often give rise to client dissatisfaction and unfavorable churn rates and confusion can easily arise. The SERVQUAL model, developed in the late 80s and of no less relevance today, affirms that minimising the gap between expected and perceived service delivery is an instrumental aspect of client retention. Clearly defining outcomes, timelines and success metrics goes a long way towards preventing client misunderstandings and strengthens the business relationship in the long-term.

If client expectations are fulfilled it should have positive implications for retention which you can measure using the classic metrics such as;

-The Client Churn Rate

-The Client Satisfaction Score (CSAT Scores) and;

-The Repeat Engagement Rate: How many clients are rebooking services with you or making upgrades?

2. Maintain a strong focus on personalisation of service delivery

The first step towards success in any client retention program is the consistent delivery of personalised experiences. Mckinsey & Company have found that the vast majority of clients, 71% to be exact, have an expectation for personalised interactions with companies. So how can you set about delivering a personalised experience that promotes retention?

Most professionals are familiar with the basic data points necessary to provide services to clients; such as industry, company size and goals. However to fully implement personalization, take the time to analyse the following client attributes if you can:

(i) Psychographics: values, decision-making styles & clearly recognisable pain points

(ii) Behavioral insights: Preferred communication methods and identified past frustrations

(iii) Success benchmarks: what success represents to them, which may well differ from the KPIs you use.

The most salient point here is: If your circumstances allow – identifying what your individual clients value the most is an excellent way to catalyse personalisation and in turn promote retention.

(i) Data driven – which means there’s a need for detailed analytics, metrics and tracking

(ii) Big-picture oriented – Vision, strategic outcomes and storytelling really matters

(iii) Relationship-focused – Place an emphasis on conversational check-ins and emotional rapport building.

And finally, if your business has a more technical emphasis and you really have an eye for data, consider using predictive personalisation.

(i) Review past client behaviors and challenges and identify the recurring patterns

(ii) Keep a watchful eye on emerging industry trends and share insights before client even ask for them

(iii) Introduce your solutions before the problem happens to eventuate

For instance, imagine a marketing consultant is working with a real estate agent. They see new AI-powered tools emerging that have the potential to make a significant difference to how the agent does cold outreach, and prepare a detailed advisory brief complete with recommendations.

3. Build a strong online community

Community-driven retention strategies such as masterminds or private groups create a sense of belonging and increase commitment to your services. Here’s a few tips for building a thriving online community on Skool, Kajabi, Circle or a regular Facebook group if you prefer, (I strongly recommend a dedicated community platform due to the absence of ads and distractions and much better features for member management).

-Build an identity and not just a group. This can be accomplished by giving the group a unique name reflective of your professional brand, a shared mission or movement and insider language or rituals

-Orchestrate member-led engagement: A weak community depends on the leader for engagement whereas a strong one thrives independently because members engage with each other. There’s several ways you can encourage clients to take the lead in your community, including the creation of member-run subgroups and niche discussions, the use of community moderators/power users and peer mentorship pods.

And finally – leverage your community for monetisation by building a self-sustaining referral loop. Offer exclusive member bonuses for attracting new qualified clients to the community and your services. For instance you may like to offer a free private strategy session for every qualified client referral you bring into a community.

4. Become a master of issue resolution and service adaptation

Believe it or not, clients who experience an issue that has been competently handled are often more likely to remain loyal and continue using your services than those who have never encountered any issues, and this is addressed in depth in a study called The Service Recovery Paradox. No matter your proficiency, it’s inevitable that issues will eventually arise, even with client briefs that appear relatively straightforward, which is why your approach here is so important. Seeking feedback and iterating your approach shows responsiveness and bolsters client trust.

A model that is useful to follow is this 3-step issue resolution framework:

Show that you understand the client’s concerns before the discussion turns to solutions, with the ideal outcome at this stage being that the client feels heard.

Ask clarifying questions and then propose a transparent solution – outlining the exact steps you plan to take to resolve the issue. Where any errors are made, own and correct them and if the prominent root cause is a mismatch in expectations, realign the scope and objectives. If the objection relates to the project length, revisit the key metrics that were established at the start and identify areas, if any, where progress can be expedited.

If the client’s objection relates to project deadline uncertainties as per our previous example, you could provide the client with a customized roadmap, so they have a defined timeframe within which their goals may be accomplished, with the ideal roadmap also incorporating regular milestone reviews.

A final word on this point, a proactive approach is key – and the best way to implement it is to set up a client feedback system. An easy way to do this would be sending your clients biweekly or monthly emails as pulse checks, which also include survey invitations. Be sure also to keep a close eye on the telltale signs of client disengagement such as slow response times and look for consistent client struggles that are identifiable from surveys. Multiple clients experiencing the same challenge could be indicative of a demand for its resolution through your services.

5. Adopt a tactful approach to identification of upsell and expansion opportunities

Offering higher-tier services or add-ons prevents stagnation and encourages long-term collaboration.

A good way to accomplish this is by alignment of service provision with client business growth stages

Stage I - Services that Build the Foundation: As you build the foundation, offer entry-level consulting services such as strategy sessions and assessments

Stage II - Done-For-You Services: Such as coaching, audits and training

Stage III – Advanced Service Delivery: This is likely to comprise high-ticket advisory such as retainer-based consulting.

It’s a well known aspect of the human condition – people like to feel special.

Deliver unexpected bonuses to your most valued clients, such as custom video messages or exclusive content

Ensure client wins are recognised; through the use of personal shout-outs, LinkedIn features or success highlights

Exclusive client perks: such as discounts on future services, early access to programs or VIP invitations.

Implement a subscription model: through innovative productisation. Repackage your services into a product that delivers ongoing value to a client, and you’ll unlock valuable recurring revenue while remaining top of mind the next time they have need for your services. With innovative no-code platforms such as Productised, this process has never been easier.

In a nutshell..

New leads will always be a net positive, but you may well find your untapped opportunity for growth can be found in making a concerted effort to retain the high-quality clients you already have. Focus on implementing the strategies discussed here and I’m confident you’ll experience an improvement, not just in overall retention rates - but also referral rates, client satisfaction and long-term revenue growth.