Your Current Clients are Golden
Yes, you need new clients for ongoing growth. But, don’t turn your back on your current clients. They are golden since they already know, like and trust you. So, strategically develop ways to increase the value of your current clients. It’s easier than you think.
Do you know the value of your average client? If not, then set time aside to figure this out.
- How long does a client usually work with you?
- Which services does she typically need from you?
- On average, how much money do you earn from one client?
Increase the Value of Your Current Clients
Rather than work with someone a single time, imagine working with the same client over a lifetime. Repeat clients cost 6-7 times less than new clients. Plus, they refer others to you which makes them even more valuable.
I outlined five distinct ways for Stacey to increase the value of her current bookkeeping clients. Here’s the strategy she followed:
Sell more per client
She gradually added complimentary services that her current clients’ desire.Rather than work with someone a single time, imagine working with that same client over a lifetime. Read the full post. #getpaidwhatyoureworth Click To Tweet
- Cross-Sell. Over the past year she added complimentary services to her business. She now offers tax advisory and payroll services. So now they receive all of these services in one place, rather than splitting it up with two or three different vendors.
- Up-sell. Airlines repeatedly offer upgrades. You purchase a coach seat, then during check out they entice you with more legroom once you upgrade to Business Class. Similar to the airlines, Stacey offered an upgrade to advisory services. Some clients immediately chose the package that includes additional consulting.
- Down-sell. We discussed how client needs vary over time. She closely supported one client through a difficult separation from a business partner. Now that the separations complete, this business owner doesn’t need the same level of advisory services. So, that client transitioned to a lower package.
Retain Clients Longer
A study by Gartner group states 80 percent of your future revenue stems from 20 percent of your existing clients. That reinforces the time Stacey devotes to keep her current clients happy.
Stacey decided on several specific ways to add value.
- Personalization. Stacey cares deeply about her clients. Now she finds ways to connect with them, even in-between client meetings. Time is blocked on her schedule to respond to their Facebook posts or send personalized emails with something of interest to them.
- Exclusive Resources. Stacey believes education empowers her clients. She hosts monthly Facebook live trainings and uploads resources to her private group page. A specific core group of clients regularly show up for these trainings, and even request specific topics.
- Track Your Profits. Money likes being paid attention to. Stacey reviewed which services are the most profitable and which don’t pull their weight. Next, she identified her most profitable, ideal clients. Then, we developed a plan to attract similar clients.
- Social Proof. Testimonials and social proof are excellent influencers. When it is appropriate, she shares them to emphasize the value of upgrading to a higher package.
Lower Costs by Creating Systems
Check this out: businesses with 40% repeat clients generate nearly 50% more revenue than similar businesses with only 10% repeat clients. Systems, like McDonald’s way to make your burger, focuses on the process rather than the person. Training a lower-level employee to do the task frees her up for higher level work.
Stacey routinely reviews her daily operations. She consistently aims to increase effectiveness, improve efficiency and lower costs. Some activities are now automated. Others became a system.Value pricing rewards efficiency while an hourly rate penalizes you for it. Read the full post. #getpaidwhatyoureworth Click To Tweet
Of course this led to my favorite topic: value pricing. An hourly rate cuts into her profits. That’s because she earns less for the same outcome. On the other hand, value pricing immediately drives up her profits. Basically, value pricing rewards efficiency while an hourly rate penalizes her for it.
Stand out From Competitors
How does she stand out and get noticed? Like many businesses, she isn’t creating something entirely new. Instead, she’s figuring out how to capitalize on the inefficiencies of most bookkeeping services by improving the client experience.
Amazon did this exact thing. Their system made online purchasing more convenient. Over time, they expanded their offerings beyond books. You can now shop for almost anything 24/7.
Stacey’s bookkeeping business stands out by elevating the client experience and resolving her ideal client’s specific concerns.
Consider this example. Your favorite, local coffee shop recently released an app where you order and pay for your morning coffee before you leave the house. Once you arrive, you skip the line, pick up your order and then you’re quickly out the door. Because they addressed the morning rush hour time crunch, and they serve high quality coffee, they’ve attracted a loyal following.
Stacey consistently refines the services, resources and experience that her clients highly value.
Be a Connector
Aim for exceptional. Stacey created a culture that highlights the client experience. She first identified the additional services that her clients crave. Then she stepped into an advisory role as their “go-to” referral source.
When it’s appropriate, she introduces her clients to others within her network. She consistently seeks opportunities to connect people. Just recently she introduced a client to a podcast host. Because of that simple introduction, that client’s now booked for an interview.
When you’re remarkable, and add value, your clients stick around longer. Adding value is a win-win.
Bring it All Together
Increase the value of your current clients as a way to grow your bottom line. Remember to appreciate your clients. Find ways to make them happy, show you care and keep them engaged.
Don’t overlook the value of systems. They significantly lower costs and free up your precious time. Of course, value-based pricing attracts quality clients and rewards efficiency.
Consistently strive to increase client loyalty. Position yourself as a trusted advisor. Then go the extra mile by opening up your rolodex to strategically introduce your clients to the right people.
Are you ready to increase the value of your current clients? Doing work for free because you don’t know how to charge for it is exhausting. Discover how to get paid what you are worth and attract clients who understand your value. Right NOW claim your FREE RESOURCE to discover how to create value based pricing.