Welcome back to Becoming a Better Business Broker in 30 Days!
This concise series title describes exactly what we hope you get out of it - becoming a broker that can close more deals with less work.
Before diving into today's article, make sure to read yesterday's article, Pitching PE Roll-ups.
Today we're exploring what is a bit of a weird concept for our strange industry - client retention. The elephant in the room is the fact that most owners sell their business to... retire. I.e. not work anymore.
While this might have been true in the past, the rise of serial entrepreneurship leads to Brokers helping the same client sell multiple businesses in their career. If we flip to the other side of the table, many aspiring Buyers want to build their own mini Berkshire Hathaway - buying boring businesses and living off the cash flow. Meaning, these Buyers can also become repeat clients.
This is all to say - preserving solid relationships with both Buyers and Sellers is becoming essential to Becoming a Better Broker - so here are the best strategies to boost retention.
Cultivate Long-Term Relationships
Building a rapport that extends beyond the closing table is crucial. Regular check-ins, offering business advice, or even just catching up over coffee can keep you at the forefront of your clients' minds.
Remember, a strong relationship is built on trust and genuine interest in their success.
- Stay Connected: Use newsletters, social media, and personalized outreach to provide regular updates about closed deals and new listings. It's funny, we've even seen referrals come in from people who've noticed we are putting out a lot of listings (even if we're not posting any closings 😂).
- Tease Your Audience: Share industry insights, market trends, and relevant opportunities that can benefit them. People are insanely curious about the secret nature of our business - tease your audience with case studies about recent deals, what multiple buyers are paying, etc.
- Events: One of our most recent strategies is to do a quarterly event (in our case a 'Deal Maker's Lunch') where we invite accountants, lawyers, bankers, and a few buyers & sellers. This has led to great referrals and a lasting impression in the minds of the local deal professionals.
Provide Exceptional Service
Exceptional service during the transaction is a given, but going above and beyond can set you apart. Offer assistance with transition services, recommend trusted advisors, or help navigate post-sale challenges. Your goal is to be so indispensable that clients can't imagine working with anyone else.
- Be a Resource: Position yourself as a go-to expert for any business-related questions they might have. This is especially important if you operate in a Tier 2 or Tier 3 city that doesn't have copious amounts of management consultants or business coaches (in our opinion, this is a wonderful thing 😂).
- Solve Problems: Help address any issues that arise, even if they're outside the scope of a traditional broker's role. For example, one of the Brokers in our firm was recently consulting the Seller of a deal they worked on ways to migrate/manage the transfer of their email to the Buyer. Was this a task they were an expert in? No. Was this a task they wanted to assist with? No. Did the Broker do it anyway to try and help in any way they could? Yes.
Leverage Testimonials and Case Studies
Success stories are powerful. With permission, share how you've helped clients achieve their goals. Testimonials and case studies not only serve as great marketing tools but prospective Sellers will do their homework on you before reaching out.
- Showcase Outcomes: Highlight the positive outcomes of your transactions on your website and marketing materials. Important note: do not forget to get case studies of both Buyers and Sellers. Far too often Brokers ignore Buyer case studies when they are equally as important. It takes two to tango after all 💃
- Personal Stories: Share personal anecdotes that demonstrate your commitment to your client's success.
Encourage Referrals
Client retention for our industry doesn't mean listing retention. Meaning, we're generally happy to 'get rid' of our active clients - because that means they sold! As such, we consider client referrals as a form of client retention - as it is free marketing.
Happy clients are your best advocates. Encourage them to refer others who are looking to buy or sell a business. Make sure to acknowledge and thank them for any referrals they send your way, as this reinforces their value to you and your business.
- Referral Program: Consider implementing a referral program with incentives for clients who bring you new business. We have found success in creating referral programs with larger M&A firms, commercial real estate brokers, and even residential realtors.
- Appreciation: We will admit we're not always the best at this, but a handwritten thank you note or a small memorable gift can go a long way.
Conclusion: The Brokerage Beyond the Deal
As our industry shifts to a focus on Entrepreneurship Through Acquisition (ETA), developing long-lasting relationships with Buyers and Sellers is becoming increasingly important. By focusing on long-term engagement, exceptional service, leveraging success stories, and referral programs, you can turn a one-time client into a lifelong partnership. This not only boosts retention but also establishes a solid foundation for your brokerage's reputation and success.
The end of this article marks 28 days!
We - are - almost - done 😨
You do not want to miss our next 2 articles, starting with tomorrow's Building a 20230 Brokerage.
If you want to learn more about optimizing the profit of your business brokerage with DealBuilder, please visit our site or book a demo here.
