How to Build a Sustainable Client Portfolio

Peady’s Selling Engagement sponsored by IRD Prospector

Fact: The average media sales person loses around 20-30% of their client base every year.

Why?

There are many reasons some controllable, some not.

  • Poor customer service
  • The business closes down
  • Breakdown in sales person-client relationship
  • Client changes advertising strategy
  • Campaign ROI doesn’t meet expectations
  • Financial issues
  • Change in client management structure or ownership

Reasons aside, the cost, in time and revenue is staggering, but few sales people truly understand the implications.

Imagine this

Two sales people, one retains 90% of customers, the other retains only 70%. If both add new customers at the rate of 20% per year, the first will have a positive 10% growth, while the other will have a loss of 10% in real growth.

Even a tiny change in client or customer retention can cascade and multiply over time. The resulting effect on long-term growth should never be underestimated.

4 ideas and a bonus idea

  1. The first sale is the beginning

Too many sales people do an exceptional job on making the first sale but in their quest for growth then ignore that same customer while they chase other new business. When the first sale is made that’s when the work really begins. Overcome potential “buyer’s remorse” and protect the original sale and future opportunities. Keep in touch and look for ways to grow the relationship

  1. Great customer service

Like it or not customer service is never ending, however the payoff is enormous. Remember the key is not to deliver or meet their expectations, it’s to exceed their expectations and the only way to do this is to know what their expectations are in the first place. Extraordinary service builds repeat customers and raving fans. Poor service will drive them into the “churn” basket!

  • Lapsed clients

To use an old phrase “sometimes it’s hard to see the forest for the trees”. Before you run off chasing new prospects look at the clients who have dropped off the radar in previous years. These lapsed clients are gold. Reactivating customers who already know you and your product is one of the easiest, quickest ways to increase your revenues. Find out why they’re no longer buying, overcome their objections and demonstrate that you still value and respect them.

  • Treasure complaints

I know, who likes a complaint? But here’s the thing somewhere around 95% of unhappy clients don’t complain, they just walk away and, of course, tell others… just not you. Maintain ongoing contact, ask the hard questions, make sure your clients are happy and solve the problems that arise in the normal course of business pro-actively. You’ll build a client for life who not only supports you but is a great source of referrals too.

Bonus

Become the “go to guy” for your client – not just the vendor of media advertising. The most successful media sales people I know have deep, deep relationships with their clients, nothing is too much trouble and they are always looking to help the client outside of the media world.
 

About the author 

Stephen Pead is a media industry veteran of 30 years with significant experience in direct sales, sales management and general management. He is based in Sydney and specialises in helping SME’s market their businesses more effectively and providing training for salespeople and sales managers.
He can be contacted at [email protected]

 

 

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