Service businesses rely on repeat business from their customers, also known as client retention, in order to grow. A business with poor retention will struggle, finding itself in a perpetual state of two steps forward, two steps back. Even with large numbers of new clients coming in the front door,it’s nearly impossible to grow your client base if equally large numbers are leaving.
How do you improve retention? Provide a consistently great client experience. A business that does a great job with client experience cannot help but grow. Existing clients become long-term clients and enthusiastically refer new people. The client experience is what drives the referral engine that leads to a profitable, thriving business.
Are you delivering a great client experience? It’s time for some self-assessment.
Below is a simple mental exercise that will help you evaluate how your business is doing with regards to client experience. Be honest and critical. This is an opportunity for you to grade yourself and make some simple adjustments that can make a huge impact on your bottom line. Remember, retention, growth and ultimately your business’ viability all boil down to the client experience.
The exercise:
Take a moment to think about what it is like to be a client of your business. I’m not asking you to think about your clients. I want you imagine that YOU ARE your client. I’m going to use a fitness studio in describing this exercise, but the concepts apply across all service-based businesses.
First, think about your demographic. What client makes up the majority of your business, i.e. pays your bills? Is it a 28-year-old hard charging athlete? Or is it a 40-year-old desk jockey with 20 pounds to lose? As you read the following questions imagine yourself not as “you” with your own athletic abilities and preferences, but as your typical client experiencing your business. This is really important as often we create our business to be what we want to experience, (if you are a hard charging athlete you may foster that vibe in your studio) but in reality that may be very different from your demographic. Make a note of any areas that you find yourself wincing or thinking “we could do that better.” Your notes will be your “To Do’s” for later.
Step 1: Imagine yourself to be a new or prospective client
If you called your business looking for information what would you experience?
What if you emailed through your website contact form? Is the contact form on your website easy to find? Is it easy to learn how to get started?
How long would you be comfortable waiting for a return phone call or email response?
Is it easy for you to book a service or pay online?
If you call, is the person answering the phone friendly and knowledgeable?
If you first come across your business’ FB page, what do you see? Does it look fun, inviting and professional?
What about when you walk in for the first time? How are you greeted and what do you see? Are you greeted differently if one staff member is working versus another?
As a new client do you feel intimidated entering classes with existing, more experienced clients? Or is there a beginner option that safely progresses you, ensuring your success.
How about the level of instruction in your classes? Is it consistent across your instructors?
Do you find the facilities clean and organized?
Step 2: Imagine you are an existing client
As a long-term client are there options for you to progress? Or will you outgrow the offerings in 2 years and need to look elsewhere to continue to be challenged?
If you had a concern and brought it up with the owner or an instructor would it be heard and addressed?
At each of these steps ask yourself if you would continue as a client. Is there anything that sticks out as being a deal breaker for you? Meaning, would you be turned off enough to leave and go elsewhere?
It may seem a bit silly, but taking some time to mentally walk through this exercise for every aspect of your business, and every step of the client path, can be tremendously helpful in guiding your efforts on improving your business. You may find that your answers to some questions are already on your “things to improve” list. Others may be items you’ve not yet considered. If you are objective and address the areas that need improvement you’ll be one step closer to the thriving business that you originally set out to create.