The Three R’s : Relationship; Retention; and Respect! On short term cashflow
Factoring is a highly competitive environment. We all fight hard for deals that become clients, we all analyze the cost of acquisition, and develop sales and marketing strategies, and we are all very aware of how important new business is to grow our portfolios. “Sales” is the most important aspect of our businesses … or is it?
A lot of times with new business streams we stagnate, or even go backwards. Even with a buoyant new business stream-if we don’t have a good team to nurture the relationships with clients, help them grow, and have a genuine interest in their business’s success, we have to run fast to stand still. Building a genuine relationship with your clients is the key to client retention. Having a good relationship with a client more than likely will lengthen the time that they remain a client, but not always. There are many reasons why a client might leave you, they might outgrow your facility or, with your help, have become financially viable so that they can now obtain traditional bank financing-both are successes and are testimony to a great relationship. Equally, they may fail, or leave due to poor service or price issues, or let’s face it, some you just can’t reason with!