50 / 30 / 20 Rule
KENNESAW, Ga. (Oct 26, 2016) — Tenacity believes in the principle that 100% client retention is possible and should be the goal of every company. Experience in practice and working with other companies has proven to us that it is indeed possible.
The aforementioned 100% is reliably apportioned in the ratio of 50 / 30 / 20 corresponding to the three major elements of The Clients for Life® client retention process:
50% - Our experience has consistently been that a company can cut their client losses in half based on senior management’s willingness to take ownership of the elements of client retention strategy. This requires that they define, publish and adhere to the criteria they have said define their Right Clients and Right Terms. There is no more important decision or action governing the success of a business than this.
Concurrently, senior management owes it to the organization to define and teach them the “Lessons Learned”. As the most knowledgeable and experienced people in the company, they can be facilitated in specifying the actual reasons that clients have been lost in the past, listing the “Warning Signs” that these reasons may be occurring and delineating the “Action Steps” they expect the organization to take when these signs are apparent.
If senior management consistently fulfills these obligations to their people, they’re half way home to 100% client retention. The Tenacity Center periodically conducts intensive seminars on how to establish a Clients for Life® Culture in your organization.
30% - A company’s willingness to invest in training their client-facing managers in proven best practices around account management and client retention can help them take the next 30% step. Tenacity believes these best practices are centered around three primary areas: 1) Understanding and Managing Client Expectations, 2) Nurturing Professional Relationships, and 3) Administering Technical Delivery (managing Revelation XSM). These are the three pillars on which The Tenacity Center bases our Digital Badge in Account Management.
20% - The final step involves investing in an independent third party to objectively interview their key clients and conduct a forensic analysis of any clients that have been lost. When a company collects and assimilates good data around how they are performing and being perceived, then positively and appropriately responds to that data, good things happen. We are available at The Tenacity Center to act as your independent third party to conduct these interviews and to produce a very detailed analysis of what we uncover.
For a copy of our white paper “The Staggering Cost of Losing Clients,” or for a demo or more information on our Digital Badge in Account Management, please contact Dr. Gary L. Selden, email@example.com or 470-578-3191.
Steve, John & Gary
The Tenacity Center for Account Management and Client Retention