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ProTip of the Week Increasing Customer Retention - The Right Client Under the Right Terms

Before we developed the Clients for Life philosophy, we failed to acknowledge that once we signed the contract, we committed ourselves and every person in our organization to meet the client's needs.  And because we made some short-sighted decisions in the quest for immediate profit, we signed some contracts that created a lot of grief for our people.  We put them in no-win situations.  We let clients chew up our managers because we thought we could make a few extra bucks.  The truth is, if our financial people had ever allocated the true costs to those operations, it would have been clear we never earned a dime from any of them.  But, we learned.  Once we realized our decisions had caused problems, we made a commitment to everyone in the organization.  We vowed never to take a client that didn't fit our criteria describing the right client under the right terms.

- John Gamble, What Your Clients Won't Tell You...and Your Managers Don't Know

When we think of customer retention, we often think of doing whatever the client wants to keep them on board with our company.  But as John Gamble highlights, our natural desire to make our customers happy can occasionally have the opposite effect.  As these "do anything necessary" accounts weigh on your own company, your ability to serve this customer (and ultimately all of your customers) can decline, making the situation a potential lose-lose for all involved.  Ultimately, this decline in service and value can mean losing more business instead of retaining it.

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