Client retention refers to the ability of a firm to keep its clients over a specified period. The ability to retain clients is often a testament to a firm's reputation, service quality, and overall client satisfaction. For boutique professional services firms, this often comes from delivering high-quality services and providing a unique, personalised client experience that larger firms may be unable to provide.
The cost of acquiring a new client is often significantly higher than retaining an existing one. Therefore, a firm's profitability can be significantly impacted by its ability to keep clients satisfied and engaged over the long term.
Long-term clients are also more likely to refer new business to the firm, creating a virtuous growth cycle. They are also more likely to purchase additional services, increasing their value to the firm. Client retention is not just about maintaining revenue; it's about maximising the value of each client relationship.
