Oooh That Smell, Can’t You Smell That Smell – Materials

Oooh That Smell,
Can't You Smell That Smell?
By: Fritz Wood, CPA, CFP

Client Retention is the Key

Did you know that (on average); your clients spend more each year they return to your practice?

By year three, a client contributes nearly twice as much as he/she did in year one. Replacing the income lost from a long-term client who defects due to a poor experience necessitates three or four new clients – a virtual impossibility today. Why do clients spend more year-after-year?

Consider the following:

  • Over time, a relationship is built. The client gains rapport and trust with key people in the practice
  • The pet is aging. On average, pet spending increases with pet age
  • Over time, professional fees generally increase
  • Over time, veterinary medicine introduces new/improved products and services
  • Repetition of a message. Most of us need to hear a message more than once. By the way, if a client declined a service in the past, I think you’re obliged to bring it up again – he/she may hear it for the very first time.

Existing clients likely account for more than 90% of your gross income. New clients probably account for less than 10%. Retention of existing clients is the key to practice health.

Finally, consider that the lifetime contribution to your practice of a typical pet owner may be measured in the tens of thousands of dollars. Wow, it’s important that they come back, have another good experience and tell their friends about you!