The importance of customer retention to profitability
All recruitment agencies rely on a steady flow of clients to keep the business up and running.
While it is beneficial to work with a wide range of customers to see where your agency's strengths and weaknesses lie, it's vitally important that you know how to hold onto your best clients. If you have strategies in place to keep your most important customers loyal and happy, you can expect to see vast improvements in your bottom line.
So what are the benefits of effective customer retention?
Generally it is far more cost efficient to hold on to existing clients than to try and win new ones.
The efforts you make to secure new business can be a drain on both your resources and budget, so a lot of your focus should be on keeping your existing clients satisfied so they don't go elsewhere. That way, you can focus on other areas of your agency instead of trying to constantly find new clients.
It's proven that if a customer is happy enough with a service, they are usually willing to give something back.
Word of mouth referrals are one of the most effective marketing tools as they carry a lot of credibility – and the best thing is your customers are doing the work for you!
If a customer is happy enough and willing to stay on with your agency, you can rely on a steady supply of business (and income) from them.
Clients who have been with you for a while are also likely to spend more and in larger amounts than new customers, further boosting your agency's profitability.
While you may already have measures in place to keep your clients satisfied, you can go one step further and use recruitment software to better manage your customer base.
FastTrack360, for example, features a Candidate and Client Relationship Management (CCRM) system to help you streamline your operations, handle your data and deliver great results to your clientele.