The 2 R’s of small business are not reading and ‘rithmetic

More than seven years have passed since opening the doors to my IT consulting small business. My primary hat has and continues to be marketing, sales and client relations. For almost six years I have been a member of a small and impactful Rotary club here in Denver. My self-appointed focus in my Rotary club has and continues to be membership and I was even appointed to the district membership committee. I seem to be drawn to these complementary roles, strategies and tasks. Hmmmm.

My roles in both organizations dovetail nicely and communicate the same message – the 2 R’s. They are Recruitment and Retention. In a for-profit business (CMIT Solutions of Denver) as well as a not-for-profit membership based organization (Rotary Club of Denver Cherry Creek), the first “R” is for Recruitment (aka client or member acquisition). The second “R” stands for Retention. Neither “R” is mutually exclusive of the other. It’s not a choice between one or the other. Neither a business nor a membership organization can or should be built and maintained by having a sole emphasis on one of the R’s.

Being involved in the marketing and sales arenas, I have always heard that “it’s easier and costs less to keep a client (or member) than to get a new one.” I am sure that you have found this to be true also. This is where Retention plays a critical role in the survival and growth of a business or organization.  My foreign language training comes into play in that the root for the retention is “tenere” or “to hold” and the prefix “re” stands for “again.” I am all for holding onto my clients and members over and over and for the long term.

Here are a few questions for you to think about and even answer when it comes to Retention:

• What kind of onboarding or orientation process do you have documented and in place?
• Do you have someone (a tech or mentor) assigned to your new client/member to get the client oriented to how things need to work in order to make the best of the relationship?
• What forms of recognition or thanks do you have in place to massage the consultant/client relationship?
• Do your clients (members) feel so great about the service and satisfaction provided that they have become Raving Fans and offer up the name of your business or organization without being prompted?

Okay, now that I’ve just barely touched on the subject of retention and lifelong value of a client or member, let’s back up a bit to recruitment or acquisition. Retention and recruitment are part of an ongoing life cycle and you cannot retain a client until you have recruited/acquired a client. So, what are some key elements when assembling marketing and sales processes to build your business?

• Define who on your team is responsible for the marketing (i.e. lead generation)
• Define a process for building and maintaining the bridge between marketing and sales. It’s a delicate handoff that better not be dropped or you will sacrifice the opportunity for converting the lead or prospect into a new client or member.
• Select people for marketing and sales who have a great personality as well as attention to detail. It’s all about bonding and rapport and follow through. These individuals also need to know how to listen and ask the right questions whether it’s asking about frustrations or what they want to gain should an engagement of your IT firm occur.

This discussion on the 2 R’s could go on for many, many blog posts. However, for now, this is the soup starter for how you should focus on Recruitment and Retention. Check back for another of my posts where I will have the opportunity to elaborate more on the unique collaboration of the 2 R’s for your small business (it also applies to large or enterprise business).