Client Retention and Attrition

One of the most common questions new web business owners ask us, is: "How long can you expect to keep a client?" My answer is always the same, "It depends."

A long time ago, while I was working as an assistant for a successful Boston photographer, he emphatically stated that anyone in the creative business can only expect to keep a client for 2 years. At that time, I thought his statement was cynical. However, he was only accepting the reality of his own business. At Blue Lab, our experience has been different - more varied.

Three types of clients you typically can't expect to retain and/or secure any significant ongoing business from:

1. One-offs: Clients who want to develop an informational website (individuals, like freelance PR consultants, doctors, small non-eCommerce store owners, etc.). While we certainly take these clients - we don't expect ongoing businsss after launch.
2. Under capitalized projects: We have consistently worked with clients who were trying to get great business ideas off the ground - from contests to travel, we saw these projects fail because additional funding failed to materialize (this is common in the business world).
3. Under committed owners: This category of client pertains to small and medium sized businesses alike, where the owner / client is reluctant to take the necessary next steps to reach a tipping point with their business. Once the signs of this become obvious, it's best to let these types of clients go because they will consistently attempt to cut corners and micro manage the process of development.

Three types of clients you can expect to retain and/or secure significant ongoing business from:

1. Content driven websites: Information driven websites that require continual content updates.
2. eCommerce sites: Non-static products. Companies /owners that continue to innovate and respond to market trends.
3. Non-technical creative firms: This includes advertising agencies, PR Agencies, design companies (usually small to medium sized businesses and freelancers). Establishing a relationship with these types of companies can bring consistent business year after year. They will usually serve as the art-director on the project for their clients.

By no means are the above lists all inclusive and there are, exceptions to every rule. At Blue Lab we have clients who have come and gone, others who have stayed with us for 4 or 5 years and some that have been with us since the our first day in business. So, I hope I have clearly answered question - because it really all depends.