A Long-Term Client Relationship Ended—What Happened?
Long-term client relationships are a company’s most valuable asset. They ensure a stable and predictable revenue stream, and the client’s expectations and needs are well understood—or are they? Could it be that in a long-standing relationship, the understanding of the client’s operations, goals, and changes hasn’t been kept up to date?
Traditionally, customer understanding refers to insights into clients’ needs, expectations, purchases, and satisfaction with products or services. This is often assessed through feedback, customer experience data, and behavioral analysis. However, today’s customer understanding requires more than basic information stored in a CRM, such as sales performance, project success, or competitor positioning.
The role of data-driven and up-to-date customer insights has emerged as one of the most critical factors for future success.
The Challenge of Maintaining Loyalty
Customer strategies often emphasize the value of loyal clients. Yet maintaining loyalty has become increasingly difficult.
In traditional retail, buying processes have professionalized over the years, leading to stricter bidding competitions. In trust-based fields dealing with complex or sensitive projects—such as business consulting or legal services—strong client relationships and successful collaborations have historically secured future projects.
But this is changing. According to a U.S. study, customer loyalty in these complex sectors has dropped from 76% five years ago to 53% today. Over the next five years, loyalty is expected to decline further to just 37% (Source: DCM Insights, 2023). The professionalization of procurement will inevitably transform customer dynamics in these industries, forcing companies to focus more aggressively on finding their niche—one that delivers a unique competitive advantage.
Deeper Customer Understanding is Crucial
Understanding client purchasing behavior, current state, strategy, and pain points is more critical than ever. In what environment does the client compete? What forces will impact them most in the short and long term? What knowledge or expertise does the client need to achieve their strategic goals? How can our company—and increasingly, our network—support them on this journey?
A strong understanding of clients’ short- and long-term expectations also enables selling companies to define their own strategic and operational priorities more clearly, building optimal models to meet client needs.
Investing in Customer Insights
Raising the level of customer understanding is no small feat, but it’s always worth it. Deep insights into your clients’ needs and challenges not only strengthen relationships but also create the foundation for sustainable success in increasingly competitive markets.
