Client retention: steps to success.

• Author: Sergeant, Deborah Jeanne
• Position: HUMAN RESOURCES - Company overview

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Barney Uhart

President

Chugach Alaska Corp.

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Michelle Gruber

Sales, Marketing, Events Manager

Dimond Center Hotel

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James C. Hasle, CPA

President and Managing Director

Mikunda Cottrell & Co.

In today's economy, constantly winning new clients makes for a challenging business model. Repeat sales or service to the same customers--client retentionrepresents a way to live up to the old adage, "work smarter, not harder."

"Customer retention is vital," said Bob Bulmer, who owns and operates Alaska Executive Search in Anchorage with wife Anne. "We've had some of the same clients for over 30 years."

Barney Uhart, president of Chugach Alaska Corp. in Anchorage, believes his company's stability is due in part to client retention, especially "when times are tough and new clients are harder to come by. It sustains revenue backlog and promotes employee retention as well."

Who wants to work for a company where everything's constantly changing?

Client retention saves money in other ways, such as marketing. You've already won these clients. Now you can focus on doing business with them.

"Return business is very important to the Dimond Center Hotel for many reasons," said Michelle Gruber, sales/marketing and event manager for the hotel.

Client retention "keeps occupancy consistent," she said. "If business is slow and we are scrambling to find new customers, the only guarantee we have are those who continually keep us busy."

Satisfied long-term clients eventually become your partners in advertising.

"Growth in this industry is not only achieved by direct marketing, but by word-of-mouth from past customers," Uhart said.

James Hasle, CPA, president and managing director of Mikunda Cottrell & Co. in Anchorage, said that retention benefits his firm by allowing for "referrals, staff development, growth and, ultimately, a strong business model."

You can usually count on faithful clients to spend a little more if you need to ramp up sales to get you through a rough patch or during a seasonal slump. Up-sell products and services to them only occasionally and keep it a soft sell for the best results. Otherwise, you risk damaging the relationship.

Client retention can be a tremendous boost to your company; however, don't rely too heavily upon one or two major clients. It can spell disaster if you lose them for whatever reason. Diversify your client base and/or your products or services enough so you will...