Are you struggling to get clients to sign retainers?
So how do we sell more retainers?
Before you set out to change your sales pitch, we need to understand what’s going on behind the scenes of retainer buying decision making.
Why do clients sign retainers?
Clients sign retainers because they need to spend regularly.
This could be something basic, like web hosting. There are plenty of businesses formed around supplying the basics. But we’re interested in the more valuable stuff.
We are looking for retainers for services that achieve an outcome.
If they’re spending on marketing, it’s because they need to be known; if it’s lead generation, it’s because they need leads. If it’s design, they need people to adopt and continue to use their software.
Do you know the outcome your service achieves?
The important thing to realise is that the outcome must be something theyneed.
Does your client need to retain your services?
We are all biased about our value.
We’re all passionate about the services we provide and believe them to be the answer to the world’s problems.
These beliefs have been inspired by our journey in the industry and the things along the way that we saw working and adopted.
If your passion is design, you probably look at companies that have grown through the quality and integrity of their design work. You feel that any business could benefit from doing the same.
If you are an expert in lead generation, you’re probably a fan of businesses that have innovated in this space and built amazing funnels through which they grew. And your view will be that if a business can get this right, then they can’t fail.
You’ll see opportunity to apply your value everywhere, especially in the businesses you work closely with - your current clients.
But your client doesn’t see the value. Who’s right, you or them?
When selling, you have to put yourself in your buyer’s shoes.
Your client’s perspective
Not everyone grows through the strategies and tactics that you’re passionate about. The decision-makers at your client will have their own (and let’s face it, more informed) view of what got them to where they are.
And even if they think your specialism is worth some investment, not every client you work with will believe that it’s the key to unlocking their growth.
For every business, there will be something which they believe they need. Something which will be an ongoing spend for them.
So first, the key is understanding what that thing is for your client. The thing they need a retainer for.
And when you understand that you’ll see why your retainer offering isn’t being snapped up.
Why aren’t they signing a retainer
There are two reasons why they aren’t signing that retainer you’re offering.
Wrong client
If your services aren’t the ones a clientneeds, then you haven’t found your perfect client. You’ve found some revenue, and we all need that, but you haven’t found ongoing revenue.
You have two options from here:
- Convince your client and change their beliefs
- Start looking for different clients
It’s easier to find someone who already believes than to change someone’s mind. However, finding new clients and repositioning is hard.
But as ever, things get easier if you do them the hard way.
Wrong service
How do you think of your retainer offering? I’ll be honest, for a long time at my agency it was an add-on. We’d do a project and then suggest entering into an ongoing agreement.
It’s an afterthought. The real value of our work was in the upfront change we were able to create through a design project. The value of the retainer was less compelling. As a result, we didn’t sell many.
The fact that we called it a “retainer” rather than simply our “service” may be telling. If a retainer isn’t where the core value is, then you’ll struggle to sell many.
If your service were designed as a retainer from the ground up, what would it look like?
How to know when you have the right client
Here are the signals that a client will spend on a retainer with you:
Their business is based on recurring revenue
If your clients’ customers spend regularly, then they are more likely to invest in improving their product to avoid churn. SaaS businesses are an obvious example of this, and you’ll find plenty of retained design, development, and marketing teams around these companies as they grow.
Your work is directly linked to the value they provide their customers
Looking back to the discussion around need at the beginning: Do you address a core need for this client? If stopping work would immediately impact their business, then you probably do. If you are working on something more adjacent, then you may not.
They have asked you to achieve an outcome that is never completely achieved
If your project is “a new website,” then once that’s launched, you are less valuable. However, if your goal is to increase leads, and the new website is just one tactic, then your work will never be done, as you can always get more leads.
Your niche is where your retainer lives.
Understanding retainers is about more than just offering ongoing services. It’s about finding clients who truly value and need what you provide on a continuous basis.
There’s an overlap here with your niche.
A niche isn’t just confining yourself to a specific industry or size of business. Instead, find a particular problem or need that aligns perfectly with your expertise.
For example, my agency found success by targeting businesses with existing software products that had over 100,000 users. This niche provided us with:
- Data for analysis
- Demonstrable impact
- Participants for research
- Clients who needed continuous improvement
This approach worked perfectly for our Product UX agency, allowing us to build long-term relationships with clients who saw ongoing value in our services.
Is your niche a retainer niche? If not, can you evolve?