Client retention is really any activity that a practice undertakes in order to reduce client losses. Client retention is about exceeding the client’s expectations so that they become loyal advocates for your practice. Often when a practice with stagnating revenue is analysed you will find that the practice is gaining new clients (which is great), but then losing existing clients (not great). The net effect is the gains are negated by the losses, so no practice growth is achieved.
Client/customer retention directly impacts on profitability with research by John Fleming and Jim Asplund finding that engaged customers generate 1.7 times more revenue than normal customers. In addition, having engaged employees and engaged customer’s return a revenue gain of 3.4 times the norm.