We all have a tendency to focus on new business. Did you see that commercial from Ally Bank? A friend of mine sent me this commercial. It got me thinking… Sometimes, it is more about the customers you already have… the ones who have stayed with you, appreciated the benefits your products provide them and their business, the ones who have chosen you over others: your old friends.
Maintaining strong client customer service speaks volumes! It says your clients can rely on you for their funding needs. It says your clients know they would rather be with you than another competing financing source. It says your clients stay with you because you are their right choice, the one they count on to operate their business. You provide the right service while solving their working capital needs. Again, they chose you and have stayed with you.
So, how do you ensure strong client retention?
You are candid. You ensure the reporting you provide is accurate and transparent. Clients can see everything online or you will provide the information. There are no hidden fees, untimely reports, or slow responses.
You are honest. Clients know where they stand and they understand the rules for funding.
You are reliable. Clients do not have to worry about their funding needs. They know they can rely on the stability of your company to meet their working capital challenges and daily operating cash flow needs.
You are available. Clients can call or email you and know they will see results promptly.
These are just a few of the concerns your clients may encounter when working with a financing company. Overall, communication is a key factor in retaining customers. Most of the time, fees are not the reason a client chooses a competing factor. It is not always about the price, even when they tell you it is.
But, it is critical to them to feel and know they can count on you, their funding source, to provide information and service so they can run their company efficiently. Remember, your clients have a company to run… they do not need to worry about their financing source on top of that.
Why is that important? In the long run, most factoring companies obtain new deals because of their existing clients, by providing referrals and recommendations. These relationships with already existing long standing clients can indicate the service, reliability, and even stability of a factor. And, your clients are a reflection of you as their factor.
What is that saying we always hear? You are who you associate with… Your old friends reflect who you are… they prove your history… they are the evidence of why you exist with the reputation you have. Ultimately, they have been with you and they want and choose to stay with you, no one else.
Focusing on your customer service is and continues to be an important element of what we do as factors. Client retention is essential, especially in the competitive markets in which we exist. Understanding your old friends and them understanding you and your business can be the key.
Wishing you continued success. The Factor Guru.