It’s the beginning of a new year. You lost some clients, you gained some. But do you know why? With reasons ranging from customer dissatisfaction to better offers/marketing from the competition, a high attrition rate is concerning for any business owner.
Many reasons could be cited in this article and dissected, but I want to focus on a topic I mentioned in last week’s blog– “Too often, businesses lose customers to the competition for a product or service that the customer didn’t realize their current provider offered.”
So how are you marketing to your current client base? Are your clients aware of your full product suite? Whether you’re utilizing email, mail, social media, blog, or your website, it’s imperative that you’re keeping your clients (and prospects) updated on the solutions that you offer. Cross-selling is an important part of any sound retention program.
Once you’ve determined WHO in your organization is responsible for cross-selling, your next step is WHEN. There are two opportunities for cross-selling additional products- in the onboarding process or later in the client life cycle. Statistics show that a staggering number of new relationships will leave you within the first year of coming onboard. An average of 30-40% of new hard-earned clients can be lost within the first 12 months, despite the great deal of money and effort spent by your organization. And since the attrition rate amongst these clients is the highest, it’s critical that we focus on cross-selling early, reducing the likelihood they will leave.
What percentage of your client base currently utilizes one service with you? Clients who only have one product/service with you are much more likely to “pull the plug”, especially if they are “detractors” or “passives”. (We’ll save Net Promoter Score for another day). If you’re not tracking how many services your clients utilize and their retention rates, now’s a good time to start. 2014 Resolution: Identify retention rates of clients with one service, two services, three services, etc.
Tracking retention is an important part of your business’s growth strategy. Developing and executing a retention plan (if you don’t already) should be a goal for this New Year. Cross-sell new and “at-risk” clients aggressively. I’ll talk more about identifying “at-risk” clients in a blog soon to come.
If you don’t offer all of the solutions that your clients need, partner with someone that can help. In the payroll industry, for example, payroll processors have partnered for years with other businesses that offer timekeeping, human resource, and benefit solutions. Licensees in the MPAY Network now offer a variety of solutions to help employers manage their human capital, from time clocks to Workers’ Compensation, strengthening client relationships and their “stickiness”.
Final note: Develop and execute a retention plan that includes cross-selling. If you’re a member of the MPAY Network, consider partnering with MPAY to add products to your suite (Flexible Spending Arrangements and Dependent Care, COBRA Administration, Workers’ Compensation, mobile time and labor management with Clockentry, paperless payroll distribution through Bank of America’s Money Network program, etc).
If you’re an employer interested in the services mentioned above, contact MPAY to get connected with a professional provider in the MPAY Network. If you’re interested in learning more about joining the MPAY Network, email firstname.lastname@example.org.
Let us help you evaluate your current marketing strategy and cross-selling techniques. Get a free marketing consultation from MPAY’s Marketing Team today.