Fundamental flaws are killing your design retainer. Here's how you fix that.
"[INSERT CLIENT NAME HERE] isn't happy. They've still got 5 hours left on their retainer this month, and want to know if we can just carry them over to next month? I think we might lose them if we don't do something special."
How much fun is that to hear with a different client every month?
It gets old after a while, doesn't it?
But it really doesn't have to be that way. The problem isn't in the retainer/recurring engagement. It's in how you structure that engagement.
Changing the way you operate can fix 3 headaches at once:
- Give you more control and predictability over your team
- Keep clients happy and the relationship strong
- Clearer processes and desired outcomes for your team on client projects
There is a fundamental problem with a lot of design retainers
This is how I've seen design retainers work in the past:
- Client is in charge of what gets done.
- They make requests on how to use what they pay for: Hours and design deliverables.
- Client doesn't understand what value they're getting for the hours and deliverables because there is no tie-in to revenue.
- Value of the service seems low to client.
- Client relationship deteriorates, causing you to have to work harder to keep them satisfied.
- Client churns anyway.
- You lose out on: Recurring revenue, positive reviews, referrals, case studies
But you can fix that problem
Just because your retainer service doesn't work RIGHT NOW, doesn't mean it can't work. Fixing it is fairly simple.
- You and your team have to take control of what you are doing for the client.
- You have to base your decisions on real, accurate data.
- You have to anchor your cost against the economic ROI you offer the client (By measuring it).
Benefit: Make clients happier
Clients are paying you to make their pockets fatter.
Whatever kind of work you are doing for them, they expect to see a positive return on investment. Can they pay you $1 and get back $5? $10?
Because that IS why they are paying you.
When you collect data and focus your services on improving a client's conversion rate (and revenue), you are focusing on providing that positive economic ROI.
When you turn that ROI into the cornerstone of your reporting and client relationship management, you are constantly giving the client what they want and more. You make it clear that you have their best interest at heart.
Benefit: Make yourself (and your team) happier (and less stressed)
You have more control
Your client knows their business.
But you know eCommerce. You know design. You know marketing.
So why on Earth would the client dictate design and marketing decisions without input from data and (your) expertise?
It's a fundamental flaw in the relationship with the client that creates resentment in 2 ways.
- The client resents having to come up with ideas, because you are now adding to their workload, not taking away from it.
- You resent the client, because you don't get to do your best work, and you are being bossed around by someone who doesn't know how to do what you do. (Or understand it's economic value)
When you are in the driver seat of your own work, clients stop seeing you as something they have to manage. Instead of wondering how you are going to fill their 5-10-20 hours, they know that you are going to deliver testable solutions to a set number of problems each month.
They know that the outcome is either increased revenue, or solid knowledge of what won't increase revenue, and more options to test.
By taking control of the relationship, you help yourself and the client.
Your team isn't always scrambling
When you collect and use analytics data and research, you are being process-driven.
- You are finding the highest priority problems to solve (the ones that hurt the client's bottom line).
- You have evidence on how to solve the problems.
- You have objective metrics to prove the value of the work.
Your project managers don't have to scramble around justifying things to clients.
Designers and devs don't have to wonder if they are doing the right work.
You can create a dependable, repeatable set of processes to guide the creative work. You set a sustainable pace that won't burn your team out with worry and last-minute fires.
Want to create a better retainer offering?
If you want to offer better retainer services, talk to me for a little while. Ask some questions.
Grab 30 minutes of time to talk for free right here: https://www.benfroedge.com/schedule/business-and-coffee
Need help using data for your clients and your agency?
I help eCommerce stores and agencies gather and use the data they need for growth. If you want to improve conversion rates and marketing ROI, schedule a time to talk or shoot me an email at: ben@benfroedge.com
This article first appeared on my own site. It can be found here: https://www.benfroedge.com/fundamental-flaws-killing-your-design-retainer-and-how-to-fix-them
Email Marketing and Automation Specialist
4yAwesome article digging into this pain point Ben!