I want to talk to you about client retention, churn, and the key benchmarks and KPIs you need to be tracking. If you’re frustrated with clients pausing and canceling their services, this is for you.
What Gets Measured Gets Done
One universal truth I stand by is that what you measure gets done and what you track always improves. Oddly enough, many agencies don’t know what they should be tracking when it comes to client retention. So let’s clear that up.
Benchmarks to Aim For
If you’re wondering, “What’s a good retention rate?” Here’s the answer: Aim for a 97% monthly retention rate. You’re in the top 1% if you consistently hit that mark. That means losing no more than 3% of your client base in a given month. Anything above 95% is still commendable.
Warning: If your churn rate is over 5%, that’s a red flag. Below 90%, you have a serious problem. Stop selling and start fixing.
KPIs to Watch
1. Percentage of Clients Met
If you’re managing a large volume of clients, it’s tough to meet everyone. Aim to have a meaningful conversation with at least 65% of your clients each month.
2. Percentage of Clients Touched
Here’s the KPI you absolutely control: the percentage of clients you’ve touched at least twice a month. This should always be 100%.
3. Percentage of Clients Sent a Video Recap
For us, every single client gets a video recap every month, summarizing the results, activities, and game plans. Make this 100% as well.
The Big Takeaway
The number one reason a client will leave is perceived indifference. Don’t be that agency. Pay attention to your clients; otherwise, they have lots of options.
Remember, these aren’t just numbers. They translate into profitability and referrals, ensuring the long-term success of your agency.
Final Thought: Achieving a 5% increase in your retention rate can result in up to a 95% increase in profitability.
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