Every salesperson knows the importance of creating long-lasting client relationships. It costs a whole lot more to gain a new customer than retain a current buyer — up to 5 times more, according to some research. Plus, you’re more likely to get more business from those who know you. The success rate hovers around 60-70% when selling to current customers, while the success rate for selling to new prospects sits around 5-20%.

So, what can you do to ensure your clients stick with you? According to Nikola Mijic, co-founder and CEO of Matik, you can follow some best practices. We share his ideas for boosting renewal rates in this issue of Promotional Consultant Today.

Roll out the red carpet. Everyone wants to feel important. Make sure you treat all your customers like VIPs — even smaller clients who may not spend much. Send them thank-you notes or promotional items to show you appreciate their business.

Start the renewal process on day one. Most companies decide whether to continue working with you long before a renewal date arises, Mijic says. Therefore, it’s important for sales reps to start the renewal process the first day a contract is signed. He recommends relationship-building early on by asking for three things clients want to accomplish that year. Then do what you can to help them achieve those goals.

Sync up your teams. When your sales team isn’t aligned with other departments, you miss out on valuable information sharing. This could mean the difference between a renewal and a lost customer, Mijic says. Use all the information at your disposal to help your sales pitches resonate.

Use data to build your credibility. One of the best ways to boost your renewal rates is to showcase your value using numbers. Mijic says that ideally you could provide a simple number that shows the ROI of your solution. The idea is to provide easy-to-understand data that can be easily shared within your clients’ organizations.

Understand buyers’ changing needs. When you want clients to renew, you need to make sure you know their world almost as well as they do. You can do this by reading industry news and monitoring competitors, and then sharing this intelligence with your clients.

Outline a renewal plan. Clients want a true partner — not an order taker, Mijic says. Show them that you have the best solution by creating a road map for the next few years that highlights potential challenges and opportunities. This can help demonstrate your value as a provider and strategic partner.

Your customers have plenty of options. Make sure you give them plenty of reasons to continue working with you. Follow the best practices above and you’ll be on your way to more engaged clients and more renewed contracts.

Compiled by Audrey Sellers

Source: Nikola Mijic is co-founder and CEO of Matik, a platform that connects data sources with data-driven content.