The briefThe 80:20 rule isn’t new thinking, but that doesn’t make it less important in today’s marketplace.
Despite the fact that the rule was coined back in 1896, the theory that 80% of your business comes from 20% of your client base still holds true today.
With so much competition circling, understanding how to keep the clients that mean the most to your bottom line is a huge advantage.
And we addressed this thinking via a client retention strategy in our work with Brisbane architecture firm DC8 Studio Architects
Services we provided
Our solutionAn architecture firm, like many others has a focus on B2B relationships; the strength of these relationships as always being measured in how much work flows between the two.
Our strategy involved setting up a tiered customer retention model, splitting DC8’s client base into three specific segments and plotting a sequence of marketing actions to nurture relationships with each.
With respect to the value these clients brought to DC8’s bottom line, we divided the client base into gold, silver and bronze.
We laid out a 12 month plan to target each segment and scheduled some key activities to take place during this period.
This was reviewed every 3 months to assess the performance of the strategy and as a result we were able to adjust what was working and what wasn’t meeting KPIs.
By understanding that not all clients should receive the same marketing investment, we were able to allocate more of the annual marketing budget to more valuable clients and in turn, see their most valuable clients return to the fold.
It marked a big shift in the internal marketing efforts of DC8 and it paid off.
We believe this strategy is applicable for any business, with big diversity in their client base.
- 250% increase in client retention
- Less marketing budget wastage
- Dependable strategy for internal team to take forward