Client retention is critical to a healthy business, and an effective client retention strategy involves the right blend of activities based on your audience. This post covers four reasons to use gifting in your client retention strategy.
Keeping clients is much less expensive than chasing new ones, and the clients you keep are much more likely to refer their friends to you. A study by the Harvard Business Review found that acquiring a new customer can cost five to seven times more than retaining a current one. In an uncertain economy, businesses must focus on their existing customers rather than spend more money seeking new ones.
You likely need to add more touch points to your client retention strategy. You know you want to show them that you care, that you are human, and that you think of them outside of when they pay you for services, but you aren't sure what to do.
Let's dive into four reasons you should include gifting in your client retention strategy.
1. A gift is a tangible reminder that someone cares.
It shows your client that you are thinking about them, even when there isn't a project in the works. The gift will remind them of the fantastic service you provided. Gift-giving is one of Gary Chapman’s 5 Love Languages, so it will resonate with many people.
2. Consumers love promotional products!
According to an industry study, 91% of consumers keep promotional products and incorporate them into their daily lives. If you choose the gift wisely, your client will use it (and therefore be reminded of your company) for years.
3. Gifts increase brand recall.
Almost 9 out of 10 people can recall the company that gave them branded promotional products. Gifts keep your business in the minds of your clients. Owning an item with your logo on it helps engrain your brand, company, and experience into their mind, so they will think of you more quickly next time they need a service that you can provide.
4. Gifts create an emotional and personal connection.
The act of giving a gift builds goodwill and, quite simply, gives the recipient good feelings about your business. We all want our clients to think fondly about our business because they will be more likely to send referrals.
Gifting can be an integral part of your client retention strategy, but doing it effectively hinges upon choosing the right gift for the person and presenting it at the right time during the relationship. A gift that shows no consideration for the person or a gift given at an inopportune time will result in an awkward, or possibly unethical, experience.
Think about when you should give the item. The purpose of the gift could be to honor the anniversary of doing business together, or it could be part of a larger seasonal promotion. Once you know when you want to give your client the gift, you can think about what types of gifts will surprise and delight your clients. Are they busy professionals that need a bit of relaxation in their lives? Are they active families and would love new outdoor gear? Being clear on the timing will help you choose the appropriate gift.
If this is starting to feel overwhelming, then that’s completely normal. There are many moving parts to an effective gifting strategy. Contact our team to get your project started by emailing email@example.com.
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