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Retention rate


General Business Discussions

A place to talk about general business discussions.
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  #1  
Old 10-17-2008, 05:51 PM
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Default Retention rate

What is your companies retention rate each year? Have you figured this out?

Agri-Lawn wrote "We have about a 75% - 85% retention rate."
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Old 10-17-2008, 07:10 PM
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for our monthly clients its about 90% for weekly and bi-weekly its about 50%
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Old 10-17-2008, 08:21 PM
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for our monthly clients its about 90% for weekly and bi-weekly its about 50%
Now that is interesting! Why do you think that is the case?
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Old 10-17-2008, 10:18 PM
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I haven't checked but those numbers seem like I would be pretty close to them. I think monthly customers who are willing to sign a contract want long term service right from the get go, so it's easy. they are not going to do it themselves, so show up as scheduled & keep them happy.... they stay with you. Weekly per cut clients often want services on wierd schedules so I tend to stick to my guns. Through the growing season I service weekly at price "A" or bi weekly at price "B" (on set scheduled days), I don't play the "We'll call when we want you to come out" game & I'm not calling them every weekto see if it's "Ok to come today". So I tend to drop those clients. Some others only want service for short periods of time like say the really hot months....? & that's fine, I've found ways to get even those customers to call me back next year. The weekly people come & go more often that's why I (& I think most of us who have been in it for a while) prefer monthly clients. It's an ongoing relation ship month in month out, season in & season out your their landscaper. I find it easier to maintain a healthy relationship with my annual (monthly) clients.
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Old 10-17-2008, 10:22 PM
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I think monthly customers who are willing to sign a contract want long term service right from the get go, so it's easy. they are not going to do it themselves, so show up as scheduled & keep them happy.... they stay with you. Weekly per cut clients often want services on wierd schedules
Do you mean that monthly customers are customers that sign a contract and get cut weekly?

And I think I am getting confused how you define weekly customers. Are they non-contract customers? Are they weekly or bi-weekly?
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Old 10-18-2008, 07:26 AM
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Weekly are people who want work done every week but then cut your neck in the winter.Bi weekly are every othe week in the growing season and then drop you during the winter.Monthly are clients that pay a set fee all 12 months.When I give a bid I try to steer them to monthly through pricee.Like 100 a month,30 a visit,35 every other week.If a client wants any thing but monthly their probly trying to save money.I also dont give them the service that a monthly gets.You know in most cases as soon as the grass stops growing then they dont pay and I dont allow people to call me a month later for service just so they can save a buck.If you wait that long then you need a new contracter.
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Old 10-18-2008, 01:17 PM
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Well said Chuck.
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