Logo Andy Sokol
Customer Relations and Why They Matter 

I’d like to share with you a little bit about my story and why I’m America’s client retention expert.

 

In 2003, I started a document shredding business with mobile shred trucks. These types of clients are typically served on an annual basis. When the documents got another year older, it was time to shred some more. Our typical clients were annual customers so it was very important that they remembered our name and remembered who to call when they needed services every single year.   

 

In 2015, 12 years after starting the company, a worldwide competitor approached us and  wanted to know if we would sell them our business. We were their business local competitor. They wanted to close their local office, merge our  company together, and run everything out of our location and under their brand.

 

They wanted to buy us because we built a very large and loyal customer base. We even had kept most of our clients from the first year of business, 12 years earlier. They knew it’d be a lot easier to buy us than it would be to try and steal those clients away from us.

 

Prior to starting the shredding business, I also had started a document copying and scanning business with my brother Jeremy in 1995. Tragically, he passed away in 2002 and I was faced with running the business solo. I quickly discovered how important it was to have a lot of loyal, repeat clients as they helped us get through that horrible time. At that grieving time, we were just focused on existing as a company and not on marketing efforts.

 

To date, that business still exists and is going strong after 20 years in business. The company also has many of its very first-year clients from 20 years ago.

 

Do you see a pattern here? It’s not by chance that our clients are not interested in doing business with a competitor. There’s something that we consistently worked on all these years and it has definitely paid off.   

 

Here’s what I learned; running a business is hard. There are a lot of responsibilities. I also learned that you just can’t count on the income from new sales alone. It’s hard to pay your bills if there’s no consistency in your income. You need repeat business and the referrals. You must spend as much or more care, effort, and time on nurturing your clients as you would on getting a new client. You must have a good client retention system to manage this process and make it easy.

 

This is literally what built my business and made it sellable. What you have to remember is, if you’re not paying attention to your clients, your competitors will be.

You’ve probably already heard of the statistic from the U.S. Small Business Administration… It says roughly 80% of all new businesses fail in their first year, only half of the remaining 20% are still in business after five years and only 1/3 are still in business after 10 years.

 

Why do you think that most businesses fail?

 

Essentially they don’t know how to retain their clients to come back over and over again. They don’t know how to get their current clients to refer them more clients that will also come back over and over again.

 

Other recent statistics from The Business Insider 2017 most importantly include:

 

    • 62% of small businesses are investing 4% or more of their revenue on marketing
    • 66% of small business owners say that finding new customers is a top concern

Most small businesses focus on increasing revenue:72%, to be exact, but they also see a great value in establishing new customer relationships ‐ 60%, and marketing and advertising ‐ 46%.

 

Here’s the thing: Only 28% of small businesses surveyed, just 28%, said they were putting most of their budget into customer retention.

 

That means that only 28% of the business owners even understand that client retention is important!

 

There’s a huge disconnect. This is a major problem, and they might not even realize it. It all comes down to client relationships, bringing customers back over and over again. This one aspect of your business, client retention, can make or break your business and can be the factor that makes your business fail‐proof.

 

The purpose of me passing on these very important business concepts is so that you don’t become part of those previous failure statistics. I want to give you that competitive edge to help you have plenty of money in the bank for generations to come. I know this from firsthand experience.

 

To learn more about how I became America’s Client Retention Expert, click here.