Client retention is critical to any business, reflecting its ability to keep customers over a specified period. When discussing retention, companies often distinguish between overall retention and controllable retention.
Understanding these differences can provide valuable insights into how businesses can effectively manage client relationships and mitigate losses.

Overall Retention vs. Controllable Retention
Overall Retention:Â This metric represents the total percentage of clients a company retains over a given period, encompassing all types of client losses, whether preventable or not. It provides a broad view of client retention but does not distinguish between losses that could have been avoided and those that could not.
Controllable Retention:Â On the other hand, controllable retention focuses on the clients a company has the power to retain through its direct actions and efforts. It excludes client losses due to factors beyond the company's control, offering a more realistic and actionable measure of client retention performance.
Is Client Loss Truly Uncontrollable?
Yes and no. In large companies, "uncontrollable client loss" describes situations where the direct servicing team has little or no influence over the client's decision to leave.
Examples include:
Global Broker Appointments:Â A headquarters-level decision to appoint an international broker, resulting in the local office losing the appointment.
Captive Insurance Programs:Â Clients moving their insurance needs to a captive, thereby eliminating the need for local policies.
Mandated Supplier Relationships:Â Headquarters mandates that all business be placed with a preferred supplier, leaving no room for local negotiations.
While the local servicing team cannot control these situations immediately, businesses can still implement systems and strategies to influence client retention proactively.
Strategies for Enhancing Client Retention
To improve client retention, businesses must adopt a strategic and proactive approach. Here are steps you can take to influence decisions at the local level and increase the chances of retaining clients who might be at risk for reasons beyond your control. You can still strategically drive the desired outcome even when faced with uncontrollable factors. These strategies are effective for controllable and uncontrollable retention but particularly relevant for the latter.
Step 1: Understand Your Differentiators
Identify and articulate what sets your service or product apart from competitors. This differentiated value proposition is crucial for retention. Your team should be able to communicate these unique selling points easily to clients.
Step 2: Identify At-Risk Clients
Implement processes to recognise clients who might be at risk of leaving. Regularly monitor key dates like contract renewals, tender announcements, and service reviews to anticipate potential losses and take preemptive action.
Step 3: Build Strong Local Relationships
Cultivate and maintain strong relationships with local contacts. Your team can leverage these relationships to retain business by showcasing unique local advantages or services competitors cannot offer. A local representative can often make a compelling case to keep the business with you if they act before finalising contracts.
Step 4: Stay Ahead with Competitive Intelligence
Gather and leverage intelligence on upcoming tenders and broader market conversations. Deep and wide relationships across your client's business and internally within your organisation can provide early warning signals and opportunities to retain business. This proactive approach helps anticipate and address potential threats to client retention.
Step 5: Support Internal Advocacy
Provide your clients the necessary resources and support to advocate for your services internally. Ensure they have ample time and resources to make a compelling case within their organisation.
Integrating these strategies into your client retention plan can improve controllable retention rates and maintain strong, lasting client relationships.
The Realistic Perspective on Retention
Despite your best efforts, some client losses are inevitable and genuinely uncontrollable. However, focusing on controllable retention provides a realistic and actionable measure of your company's performance. By following these steps, you enhance your chances of retaining clients, reducing churn and increasing satisfaction.
The Wrap-Up
Client retention is a multifaceted challenge that requires a strategic approach. You can significantly improve your retention rates by understanding the difference between overall and controllable retention and focusing on the factors within your control. Implementing the abovementioned strategies will help you avoid potential losses and maintain strong, lasting client relationships.
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