It’s a subject that’s come up a lot lately, and I’m pleased that so many more businesses now understand that their relationships with their clients (client retention) aren’t just a nice-to-have; they’re a must-have for any business looking to thrive.
Person-to-person communication—or at least any communication that feels personal—is by far the best way to retain clients and have them recommend you to people they know. The stats say it all…
- Increasing customer retention rates by just 5% can increase profits by 25% to 95% (Bain & Company).
- The probability of selling to an existing customer is 60-70%, while the probability of selling to a new prospect is only 5-20% (Marketing Metrics).
- It costs five times as much to attract a new customer than to keep an existing one (Invesp).
The power of relationships
At the heart of client retention is relationship building. It’s about turning a transactional interaction into a meaningful connection. When clients feel appreciated and understood, they’re not just more likely to stick around—they become your biggest cheerleaders.
But who has the time to do that? Well, not to brag (because we specialise in newsletters), but if newsletters provide value and sound like you, it’s a great way to keep up the relationship without having to shake hands once a month. But what do I mean by value? Here’s an example from one of our clients.
Mike owns a local plumbing company and started sending monthly newsletters to his customers. We were careful to ensure it wasn’t full of promotional fluff. Instead, we filled it with practical content: seasonal home maintenance tips, DIY tricks for minor plumbing issues, and even local community news (I am sure in the future, we’ll segment his database to have multiple communities as he spreads through Auckland). In winter, he’d share advice on preventing frozen pipes. Come spring, he shared easy DIY tips for clearing blocked gutters. He even included a “Customer Spotlight” section featuring home improvement projects his clients had completed.
This consistent communication led to a 35% increase in repeat business over the course of a year. Customers appreciate the helpful advice and feel connected to Mike’s business, often reaching out for services they might have otherwise hired someone else for.
Mike had an even bigger smile when his customers started forwarding his newsletters to friends, family, and neighbours. Others began subscribing to the newsletter, and the database grew by 40%. Word of mouth is the holy grail of marketing—Nielsen reports that 92% of consumers trust referrals from people they know.
Newsletters have retention superpowers
Newsletters work wonders for client retention for several key reasons. First and foremost, they serve as regular touch points, keeping you in your clients’ minds without being intrusive. Unlike direct sales calls or frequent emails asking for business, newsletters arrive at predictable intervals, offering a gentle reminder of your presence without applying pressure.
By sharing useful information, tips, industry insights, or even entertaining content relevant to your field, you position yourself as a valuable resource. This approach demonstrates your expertise and commitment to your client’s success or interests, going beyond the transactional nature of your business relationship.
At MasterJack, we’re not fans of being pushy or using obvious sales tactics. We insist on providing value for your readers. Whatever you give away will come back to you, so don’t worry about the competition stealing what or how you do things—be the leader and be you—because that’s something they cannot replicate. Some clients want their newsletter to be available for anyone who wants it, and some choose to keep their newsletter just for their clients.
Lastly, newsletters also serve as a handy tool for understanding your audience’s interests and needs. By tracking which articles or sections garner the most clicks, opens, or responses, you gain insights into what your readers find most engaging or beneficial. This data becomes a roadmap for future content creation, allowing you to tailor your newsletters to your audience’s preferences. Here’s a great example from another client of ours…
Campbell is a mortgage broker, and he’s chosen to share his quarterly newsletter exclusively with his clients. Sure, anyone can find the content on his website or through Google because we’re constantly using keywords to help his online presence, but the first people to know about this content are the ones in his circle. The newsletter features clear, jargon-free explanations of market trends, property investment tips, and behind-the-scenes insights into lending processes—information that gives his clients a genuine edge.
But the absolute genius is in the analytics—his team matches the newsletter engagement data with his CRM. If one of their clients clicks on an article about refixing their mortgage, his team will ensure they catch up with them over the phone and see if they can help.
This behind-the-scenes connection enables Campbell and his team to have more informed, timely conversations with clients, often addressing their needs before they even voice them.
Another client is a mid-sized law firm in the Auckland CBD. They send a bi-monthly newsletter with each department (employment law, commercial law, property law, and litigation/disputes) contributing an article. MasterJack ensures all pieces maintain a consistent, approachable tone reflecting the firm’s brand voice. The newsletter covers various legal topics, providing valuable information while subtly showcasing the firm’s diverse expertise.
It not only educates clients but also leads to cross-selling opportunities. Clients forward the newsletter to friends facing legal challenges, viewing it as helpful rather than promotional. By prioritising client education over overt marketing, they have established themselves as trusted advisors, strengthening relationships and organically growing their business.
The art of the non-sales pitch
The key to a successful newsletter is to focus on providing content that’s useful to your clients rather than making a sales pitch. Here’s how to strike the right balance:
- 80/20 Rule: Aim for 80% valuable content and 20% promotional material.
- Solve Problems: Address common challenges your clients face and provide solutions.
- Tell Stories: Share case studies or success stories that your clients can relate to.
- Educate: Provide insights about your industry that can help your clients make informed decisions.
Remember, the goal is to make your clients look forward to your newsletter, not dread it.
It’s a long game
Client retention is not a sprint; it’s a marathon. It’s about playing the long game, building lasting relationships rather than quick wins. Remember, your current clients are not just a source of immediate business; they’re the foundation of your future success. They’re the ones who will sing your praises, refer new business your way, and stick with you through thick and thin.
So, the next time you’re tempted to pour all your resources into chasing new clients, take a moment to consider the gold mine you already have. Nurture those relationships, provide consistent value, and watch as your business grows – not just in size but in strength and stability.
After all, we’ve all learnt that it’s not just about who you know—it’s about who knows, trusts, and values you. And that is the true secret to long-term success.
If you’re interested in getting a newsletter sorted for your business (here’s the 20% promotional material), we’d love to hear from you. I’d like to mention that we get clever with your content and ensure it’s being used everywhere—your website, newsletter and social media—and we do this for a monthly cost so you can budget without surprises.