Here’s something to consider: Some experts maintain that it costs between four and ten times more to acquire a new customer than it does to keep an existing one. Some suggest that it costs 30 times more to attract a new client than it does to retain an existing one.
And, while experts may not agree on the costs of attracting new clients, they agree that nurturing client loyalty makes good business sense.
In that spirit, VHMA asked survey respondents about their strategy for nurturing client loyalty. Do they ramp up the bells and whistles or is it simply enough to offer courteous, respectful and quality care?
The survey, which was completed by 107 veterinary professionals, did not define client loyalty, but rather, asked respondents to describe how their clients demonstrate loyalty. Approximately half of the respondents described loyal clients as those who comply with the recommendations and treatment proposed by staff.
Approximately 25 percent believe that clients who refer friends and family to the practice are demonstrating loyalty. Respondents also consider clients who are “brand loyal” and use a practice’s services exclusively to be loyal.
More than 50 percent of respondents stated that between 51 and 75 percent of their clients are loyal.
Asked to isolate the attributes most likely to influence a client’s loyalty to a practice, respondents identified trust in the veterinarian and clinic staff (33 percent), caring and attentive customer service (24 percent) and having established a personal connection with a staff member (21 percent).
How do practices know how many clients are leaving and how many remain loyal? Slightly more than 50 percent track attrition. Forty-four percent do not and five percent do not know.
Of those practices tracking attrition, 34 percent track monthly, 28 percent do it quarterly and 21 percent annually. Less than 50 percent of practices tracking attrition contact clients who do not return.
Respondents did speculate about the reason clients do not return and 38 percent attributed it to the cost of care. Others cited disappointing customer service (19 percent), inconvenient location (15 percent) and a small number blamed hours, trust, quality of care, wait time for appointments and continuity of care.
Client loyalty can make or break a business. Getting clients in the door is a first step but long term success is dependent on return customers. Our survey respondents value loyalty, but creating loyalty requires effort. Sometimes a client immediately clicks with a practice and returns again and again. It is more difficult to follow-up with those who have not returned and ask them about their experiences with the practice. Practices that track, follow-up and consider client evaluations are more likely to have a strong following.
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