According to KPMG the biggest revenue driver for companies is customer retention. Nick Hogan, from our partner Access Group shares 4 quick tips to help your recruitment agency retain clients.
Just a 5% increase in customer retention can result in company revenue increasing by up to 95%. Retained customers actually categorically spend more than new customers, and often also refer new customers to the company. In addition to customer retention increasing revenue, it’s also cheaper for the company too. It is 5-25 times more expensive to acquire one new customer than it is to retain a previous one. Therefore, not only is it more lucrative to retain customers but it’s also cost effective. Despite the numbers being clear, companies still seem to spend more on customer acquisition than retention. Investment in acquisition has increased from 31%to 34%, yet investment in retention has decreased by 24% to 18%. Having a great product or service is not enough to keep customers on your side, this must also be accompanied by strategy. If we take the rule that for recruitment agencies their customers are their clients, how then do we ensure we’re retaining them instead of losing them?
Set expectations
This refers not only to the outcomes that your company can deliver for your customer, but also the time it will take you to do so, how much it will cost, communication styles and more. It goes without saying, as well as setting expectations for your client, it’s important to endeavour to meet these. Author Roy Hollister Williams states that ‘the first step in exceeding your customers’ expectations is to know those expectations’. Lofty promises, although tantalising, are useless if your agency cannot fulfil them. It is better for your clients to feel that you have gone above and beyond for them, rather than that you’ve underperformed. The age old sales adage, under promise and over-perform rings very true here.
Communicate results
In any long-lasting relationship it is not always possible to meet the expectations set out initially, and sometimes, although you’ve delivered, it may still not be what the client had in mind, especially if you have different expectations on roles and the current hiring trends. However, it is crucial that despite the outcome, your recruitment agency communicates with their clients. In addition to this, it’s important to not only provide feedback but to receive it from your clients. Australian IT Support Firm, R&G Technologies, give clients the chance to highlight what the firm’s doing right and what they’re doing wrong by providing a satisfaction survey. This gives the company the tools to improve their practices and actually retain customers, and to also get an idea of what their target audience are looking for. Engagement surveys are not just for employees.
Plan ahead
Plans should, where possible, be targeted and personalised for the client. No two client is the same naturally, and future plans and goals should reflect this. To ensure that plans are achieved, it is necessary to note them down. This will make them easier to review and clearer for both parties. On countless occasions, recruitment agencies have lauded themselves as being able to maintain ‘long-lasting relationships’ with their clients and candidates. In order to maintain something, you have to, according to modern definition, ‘provide necessities for existence’. Clients’ needs are subject to change, and therefore what your company provides them must change too. As important as it is to give your customers next steps and goals to look forward to, it’s just as important to review and revise these regularly.
Be consistent
Consistency is necessary when building trust. As well as being able to present clients with a plan and a goal to look forward to, they need to know that they can rely on your company to get the work done. This enables them to also manage their own expectations. Keeping your services consistent is just as important as keeping your communication consistent. Having top quality services is great, however, once again, it is not enough. Clarence Francis famously stated that ‘You cannot buy loyalty. You cannot buy the devotion of hearts, minds and souls. You have to earn these things.’ Whatever the relationship, in order to earn an individual or client’s trust and loyalty; consistency is key.
There is of course a hundred other small and big ways your agency can continue to build loyalty, trust and long-standing relationships, but as a starting point, these pointers can set your business up for the beginning of sustained and fulfilling relationships.
Want to learn about how investing in the right recruitment software can help your business retain clients too? Get in touch to speak to one of the Access recruitment specialists today.
