Why do clients leave?

    • 51 posts
    May 12, 2010 8:51 AM PDT

    A recent study by Dan Kennedy determined that...68% of clients who leave do so because they feel unappreciated, unimportant, and taken for granted.

    What specific steps can we take to stop this "churn"? What's the plan?

    • 994 posts
    May 12, 2010 11:58 PM PDT
    The better we communicate with our clients, the less likely they are to be (or feel) neglected. I suspect that the clients who do feel taken for granted are being taken for granted - whether deliberately or inadvertently. This may be the single best argument against carrying a large account list, though in my experience unrealistic account loads have been the norm and not the exception. (There was some discussion of this topic back in August, following one of the Friday Polls.)
    • 41 posts
    May 14, 2010 7:12 AM PDT
    Jerry,

    I think one reason that clients feel unappreciated is that many of our salespeople have a fear of failure. They work hard to get a client on the air and once that's done, they're afraid to go back because they don't want to be told the campaign isn't working. We can't sell them and then disappear. We must show our clients that we genuinely care about their business and that means ongoing communication.

    I'm sure there are a number of solutions to that problem including a good account management system that keeps salespeople and managers informed about what's going on with every client.....those who are on the air and those who are not. RAB has just introduced one that is affordable for anyone.

    I also think that controlling the sales call is highly important. If a salesperson allows a client to buy less time than he/she believes is necessary to sell the product, or if the client's offer is weak, the salesperson will surely lose the business. I'd rather have my salespeople walk away from a bad deal than to do it and have the client tell us that Radio doesn't work.




    I b
    • 51 posts
    May 14, 2010 8:31 AM PDT
    Hi Hal...

    Right on!

    I vividly remember an account where I sold them a remote broadcast. It was a beautiful Saturday and no one came in.I mustered the courage to go back on Monday expecting the worst. My client admired my "take my lumps" visit and told me I had worked hard and advised us both to be patient through the week and see the residual results. They had a great week.

    You've heard the saying..."Clients don't care how much you know until they know how much your care."

    Jer
    • 994 posts
    May 14, 2010 9:02 AM PDT
    Hal,

    You make a great point. Fear of failure can derail the best of intentions. Managing accounts is often a matter of managing expectations, and that's where good communication is vital. And it isn't unilateral. Both we and our clients need to educate one another (better still, learn from one another) in the interest of forging a successful partnership and a satisfactory campaign.

    What are the client's expectations with regard to the overall advertising campaign (or any particular part of it)? The answer needs to be specific. We both need to see the target before we can aim at it. Are his expectations realistic? Is the budget sufficient to accomplish his stated objective? Will there be sufficient repetition to do the job? The banks these days are paying barely 2-3% on one- and two-year CD's. What constitutes a reasonable return on the advertiser's investment? When I first got into the business, I thought radio advertising was akin to magic. I quickly learned that it is not. :>)

    Is the commercial on-target? (Chris Lytle did us a big favor when he insisted that what we're really doing is testing the message, not the medium. But we have to believe this and make sure our clients recognize it as well.) This is where ongoing training in the art of advertising is so important. It's not enough to receive sales training to win a client's business. We need to acquire proficiency in persuading our listeners to do business with our advertisers, and that requires a somewhat different set of skills.

    The better equipped we are to serve our clients and the more open and thorough our communication with them, the less opportunity for fear to gain a foothold.
    • 9 posts
    May 14, 2010 11:07 AM PDT
    I have found several things that my clients have responded very favorably to. I try for the most part to get contracts for a year. It isn't always the way to go, but especially when I have a long term contract I might 1) just take time to write them an e-mail thanking them for advertising with us and asking if there is any other way that we can better serve them, or 2) write them a thank you, not asking for anything, only a hand written thank you, or 3) stopping by just to ask how things are going. Would they like anything changed or up-dated? or 4) I also find managers often like to voice their own spot but don't have time to come to the studio. I take my little hand held mic, which has good sound, and let them voice their spot right at their business. I do all I can to go to them, be prepared and get them involved. Our rural area seems to really appreciate this.
    • 994 posts
    May 14, 2010 4:43 PM PDT
    Ellen,

    All those things you mention are to be commended! They demonstrate that you maintain a vested interest in your client's success and are doing everything you can to build a strong relationship on a foundation of service. With that attitude and dedication, you can't help but be successful!

    -Rod
  • May 18, 2010 10:31 AM PDT
    Most sales people will tell you that clients leave because of price. Most Clients will tell you they left because of service. Mostly what we need to do is change our mindset. I know as a sales person if I close a big sale or a new account, I get pats on the back from staff and managment alike. If I spend the morning doing service calls I don't get pats on the back. I get, "Didn't sell anything???"
    • 4 posts
    May 18, 2010 11:25 AM PDT
    That is so very well put!
    • 51 posts
    May 18, 2010 11:48 AM PDT
    Mark....Well put, and unfortunately correct. There should be a plan for selling and a plan for servicing.
    Jerry
    • 51 posts
    May 18, 2010 11:49 AM PDT
    Maybe that should be....a plan for retention and growing.
  • May 18, 2010 2:00 PM PDT
    Clients leave because most sales people find it easier to lump a client in with the other clients with
    whatever the station promotion is at the time. They need their own promotion just for them alone.
    Get creative, talk to your Sales Mgr or GM and work up a special promotion. If you come in with
    their own promotion they'll know your working just for them and not just after the money. Money comes with a successful promotion and a retention of clients.