Logo Andy Sokol
Four Categories for Client Retention

Step one, identify your top 2% clients

Who is your best, most ideal client? How often do they order? How long do they stay clients? How much is  their average order? These are going to be your “A” clients. Identify them, monitor them, and above all, nurture them.    


Step two, find the rest of the top 20%

These are going to be your “B”  clients. They are also very important to identify. You’ll want to take great care of  them in a concentrated way. These two categories, the A and the B categories, represent 80% of your revenue. It’s worth investing and earning their repeat  business. You must stay as top of mind on a consistent basis as you can, or you’re priming them to go to your competitor. You do not want your top 20% clients  going to your competitors.


Step three, who’s the other 80%?

These are going to be your “C”  clients. The C client is the rest of your regular customer base. These clients represent the other 80% of your base, and the remaining 20% of your regular  revenue. Now, you don’t need to break the bank getting them to place another order. It’s important to know that these customers also need to feel the love and attention. It’s vital that you don’t take them for granted.


So even though we’ve  covered 100% of your customer base we have one more category, the “D” client  list.


Step four, you need to make a D client

The D, or dormant clients, are those who have not bought from you for too long, or for whatever reason. Of course, the average length of time in the customer’s buying cycle is determined  by your industry, so you need to take that into consideration. Unless you know and understand who your lost customers are you can’t even begin to figure out why they left and how to get them back. It’s extremely important to know which clients fall in this category.    


Once you segment your clients into these four categories, the A’s, the  B’s, the C’s, and the D customers, you can then focus on taking better care of your best customers, turn your average customers into your new best customers, and rejuvenate your lost D customers, and hopefully convert them into at least a C current client.   


The reason for segregating your contact list is to organize how you’re going to show the love. Depending on the level of customer that you’re working with, the messaging of appreciation going forward needs to be slightly different. You can’t use the same messaging for everyone because one size doesn’t fit all in building relationships.