Any service-based business needs clients in order to survive and to thrive. For that reason, having a healthy influx of clients is always desirable – especially if you plan on growing a company. What is often neglected in favor of shiny new acquisition methods, however, is effective client retention and its long-term effects on the stability of a business. With the right approach, retaining clients is more sustainable, cheaper and easier to accomplish than acquiring new ones.

As any other market, Germany has its own particularities that should be considered when trying to make clients stay. In the following, I will highlight the challenges and opportunities with clients in the German market and how we approach this topic at our digital marketing agency HECHT INS GEFECHT.

Let’s explore the factors that play a major role in client retention and some approaches that have worked for us throughout the years.

Client Retention in B2B vs B2C

Many businesses that find a client acquisition system that works for them get caught up in a scaling frenzy and then struggle in times of economic downturn. Especially in such times, both B2B and B2C clients are much less likely to take risks with service providers they don’t know yet. Meanwhile, clients with longstanding business relationships tend to stick with the service they know and are content with.

A happy client is a client that stays. In particularly competitive markets, clients should be kept especially happy. The grass is always greener on the other side, and if your B2B or B2C clients have lots of options and the slightest issue with your service, they might try their luck with another company.

This is especially true for B2C clients, as oftentimes the relationship between you and them is mostly transactional. Not just the service quality, but also your brand and how it is perceived plays a big role in how likely a client is to stay. However, these two factors must be in sync with each other. If your brand says “market leader” but the service is noticeably worse than that of any direct competitor, your clients are likely to feel that they have been promised too much, making you lose a lot of your valuable reputation.

The process of B2B client retention is oftentimes more personal. Some B2B clients may even accept lower quality than what they originally expected, if they feel like you are truly acting in their best interest. In this market segment, loyalty from the side of the service provider is an important signal to your clients that you care. And the more you actually care, the easier it becomes to convey this in a convincing way. Some B2B clients might even become friends over the years, providing long-term stability to both parties.

How is the German Market Different?

German consumers like to be well-informed about a product or service before paying their hard-earned money for it. When buying a service, your clients follow the same scheme. In the end, every commercial client is also a consumer and is likely to have adopted this general mindset. High quality is another aspect that will receive a lot of emphasis, so make sure that any service you offer lives up to the standards of your target group. This implies some market research, but your current clients will oftentimes be happy to have their feedback heard – so you might as well just go and ask them what they need.

B2C Clients are Comparison Champions

B2C clients in Germany are picky and will leave if you don’t try hard enough. As in most consumer markets, there is some tolerance in the acquisition phase if you have a strong brand. But to retain clients you will have to deliver on everything promised and make sure not to become too comparable with other businesses. Because, whatever you are offering, it is certainly being compared and consumers may be willing to pay a higher price for an outstanding alternative. 

As already mentioned, this doesn’t just happen during the initial acquisition – your B2C clients are always on the lookout for a better deal, even if they have been with you for a while. Give them good reasons not to jump ship. In Germany, sustainability may be an important topic for your B2C clients, so it is advisable to incorporate sustainable practices into your business and your brand. Chances are your biggest competitor is already doing it. Low energy consumption, carbon emission compensation and local sourcing are some of the characteristics a growing part of your clients will be looking for.

Commercial Clients as Your Best Allies

B2B relationships in Germany come with their own set of challenges. Across most markets, a great service trumps any fancy attempts at making your clients feel special. If they get what they paid for – and even a little more – there is really no reason to call it quits, unless that service is not needed anymore or the client’s budget changes. In the German market you will need both excellent service delivery and a personal touch to your business relationships. The latter is less optional and rather expected or even demanded. This becomes more true the more your client is paying for your services.

In this market, personalization and individual service are the keys to your clients’ hearts. This may be email newsletters addressing them personally, individual support, discounts for long-time B2B clients or regular check-ins via phone call. Some of these approaches might seem time-consuming, but they will save your company time and money in the long run – and make for happy clients along the way. This may take time, since the value is seen in genuine connections rather than just professional friendliness, so patience is advised.

The Role of Cultural Sensitivity and Communication

Many approaches to client retention won’t work as well on Germans as on clients from other cultural backgrounds. Some of the particularities to keep in mind have already been addressed, others deserve special attention.

Germans tend to be cautious decision-makers, even to the point where they question purchases after the fact and might go back to the comparison phase. To reassure them of their decision, keep demonstrating the value of your product or service and communicate it transparently and evidence-based.

If your service ever changes, let your clients know beforehand and explain well why the change is happening or should be discussed. Many Germans dislike changes, especially if they had the feeling that everything was great as it was. However, if you want to be proactive about market trends and change things up before they become a business emergency, you will inevitably surprise clients with new features, prices, etc. Make sure to clearly communicate the benefits of changes, provide detailed information, and offer support during transitions.

Also, be aware that Germans typically prefer formal communication, which may pose a challenge when trying to build personal relationships with your clients. My advice is to take it slow and try to strike a balance between professionalism and personalization. Be friendly but don’t force the “friend role” onto them, rather let the relationship develop organically.

Case Study: How HECHT INS GEFECHT is Winning at B2C Client Retention

When we built our digital marketing agency HECHT INS GEFECHT a few years back, we already had existing clients from its predecessor business, but the focus had shifted. Besides SEO, we now offered web design, performance marketing and specialized consulting services for businesses looking to scale.

Not after long we noticed how we were bringing our B2B clients great results in one domain but not offering them one of our other services, which would have contributed to the overall success. With the goals of their business in mind, we started to offer them personalized packages depending on their specific needs, including some things they didn’t even have on their radar until we mentioned them. We didn’t push for unnecessary upsells or cut down on service delivery to focus on reeling more clients in. Instead, we bundled up what was already there so our clients would have all their marketing needs met in one place.

Of course there were clients that weren’t happy with the change, despite offering discounts and a seamless transition from the current service package at that time. But it wasn’t until we sat down with them for a long, personal video call that we found general approval from our client base. On the calls, we took the time to thoroughly explain why the change was happening and how this would benefit them both instantly and in the long run.

Ever since, we went on to invest even more time than before in both transparent communication and genuine relationship building with both old and new clients, regularly checking in on them even if we didn’t have any big announcement to make. This didn’t just mean asking for their satisfaction with our services, but also understanding how it was going with their business in general and connecting on a personal level. This way, many happy clients became friends over the years and are even proud supporters and advocates for our business.

Monitoring and Adapting for Long-Lasting Success

The market is ever-changing, and so should be your strategies for client retention. Demand might shift and new competitors will emerge, so it is important to stay in touch with your clients and check in on them and their needs. This might mean reshaping your offer by adding new services and reducing dead weight such as services your client doesn’t prioritize anymore.

If you don’t adapt to the changing market, your competitors might beat you to it and leave your clients wondering whether you are still a good fit. This can be avoided by being proactive and diligent with your market research. Spotting market trends and monitoring other companies in the same niche for special offers or new services will allow you to react quickly. Being the company setting those trends and changing things up before others do will even keep you out of that reactive position.

Concluding Thoughts

When Germans search for a service, they look for quality, transparency and personalization. If you want them to be long-term clients, make sure that their high quality standards are consistently met so they don’t even think about the competition. Also, make sure that they receive an individual treatment with lots of transparent communication and with special attention to cultural nuances. Lastly, keep evolving your strategies for client retention, always staying close to your core clients’ needs and seeking new ways of keeping them happy for years to come.