As business owners, we’ve all encountered the ideology that massive customer bases equate to higher success. While this statement does hold validity in some cases, you can easily find gaps in the argument when reading between the fine print.
From an economic standpoint, larger audience pools raise the likelihood of client loss due to differing values, miscommunications, and similar challenges. In fact, a mere 35% retention rate is considered healthy for B2B companies.
Instead of jumping into the industry with a Texas-sized acquisition mindset, approach the field from an angle of “value over volume.” Having a few strong, secure business-client relationships can prove more beneficial in multiple areas, from increased ROI to operational morale.
The Argument for Small: 5 Benefits of a Close-Knit Client Base
In the words of Seth Godin, entrepreneur and author, “When you seek to engage with everyone, you rarely delight everyone.”
Content marketing is so often geared toward gathering as many clients as possible, regardless of their demographics. However, this strategy can negatively affect nearly every aspect of daily operations. Chasing each wagging tail can leave you and your team exhausted and, in many cases, without much to show for your efforts.
Instead, seek the right people for maximum success. In practice, targeting a smaller audience compatible with your unique brand and values means ample chances to truly interact with them, learn about their lives, and help them succeed. Over time, engagement fosters trust, and trust flourishes into sustained business.
Curious to learn more about the advantages of thinking small? Read on for five in-depth discussion topics.
1. Higher ROI
Attracting the right audience very frequently translates seamlessly into higher ROIs. These clients come to your business for a reason–your expertise, authority, and trustworthiness (remember EAT?). They know your word is good, so they’re more likely to agree with the new products, services, and techniques you recommend.
In the same vein, clients may even start suggesting adding services to their accounts on their own accord. They’ve seen your expertise in action and they want more! For instance, after reading your latest niche-specific blog post, a long-term partner in that field expresses interest in adding ghostwriting to their calendar.
2. Word of Mouth Referrals
Word of mouth is arguably the most effective marketing strategy, no matter the industry. In a small audience, this simple tactic ensures your business automatically reaches the right people, without any effort on your part.
But, how does this happen?
Simply put, dedicating time to knowing your clients feeds the relationship, promotes confidence, and solidifies future contracts. Clients who receive this high level of care will want to share their success with others, particularly those looking for the same attention.
People naturally gravitate toward those with similar values, viewpoints, demeanors, and needs. In the business world, this attraction is no different. Your carefully curated client base will likely commerce with companies that are quite alike. Therefore, when a current partner shares positive thoughts about your brand with associates, those referrals will already fit your ideal criteria.
Here, we see the importance of small, closely connected client spheres shine. When one entity is happy, the whole ecosystem grows and flourishes together.
3. Increased Engagement Rates
Clients can start to feel like family when you share a healthy business relationship. And, what do family members do regularly? They interact with each other!
You may notice engagement rates skyrocket with a smaller client base. Because of the close connection they have with your brand, many will be more inclined to participate in surveys, testimonial requests, or social media threads. Here, you’re given even more opportunities to deepen existing relationships, thus increasing client loyalty, retention rates, and satisfaction.
For example, posting a feedback column on LinkedIn is a great way to get clients involved. Ask how you can improve your strategies, and integrate client comments into their personalized approach. Once they realize you’ve acknowledged and learned from their suggestions, you garner additional credibility and authenticity. What this means for you is simple–increased sales and repeat business.
4. Lower Acquisition Needs
Targeting content toward multiple thousand potential clients is one way to garner brand awareness. However, doing so means investing a lot of time (and money) into creating, implementing, and analyzing marketing strategies. You also face the possibility of matching with out-of-niche clients with different values, goals, and mindsets.
Conversely, pursuing strong, durable business relationships can decrease the need for such energies and expenses. Instead of focusing on rapid audience expansion, spread efforts wisely between tending to current clients and reaching out to brands with akin personalities. Your circle may be tighter, but those included will be avidly engaged and ready to succeed with you.
5. Improved Morale
Communication methods, business approaches, and corporate objectives vary vastly from client to client. What matters here is how these different principles interact with (or clash) with yours.
Let’s say you spend hours formulating a business agreement for a client, complete with intended meeting schedules, your role obligations, and proposed outcomes. When provided with the contract, they seem gungho and completely on board.
However, issues over conflicting beliefs, unacceptable demands, or a lack of respect arise as the quarter commences, and your team grows frustrated and disheartened. Eventually, you find yourself consistently rewriting content, answering emails outside office hours, and asking for additional employee support. Even after you struggle to resolve conflicts, the client walks away from the deal, leaving you in the red.
These challenges can often be avoided by choosing only to work with clients who are on the same page about everything. Entering the business relationship with mutual beliefs and ethics fosters a welcoming environment both during and after each encounter. Your clients are happy, your employees feel rejuvenated, and you rest easy knowing you’ve secured a steady income source for your team.
In Conclusion
Don’t automatically buy into the “Big is Better” mentality. Yes, this approach does work for millions of businesses across the globe. However, if you’re after a simple method to achieve higher engagement, retention rates, client satisfaction, and revenue, downsizing can be a more attractive option.
Become acquainted with your clients–listen to them, honor their needs, communicate openly, and express your appreciation at every possible opportunity. Nurturing this relationship not only benefits you but also the client and your entire team. Creating a community of advocates and friends rather than solely seeking success in numbers can propel you in the right direction.