We’ve all heard the old adage “A bird in the hand is worth two in the bush”. As trite as that may sound, it still rings true in business today. It’s much more cost effective to keep an existing client than it is to replace one. Statistics vary but according to recent studies, it can cost anywhere between 4-10 times more to replace a client than to keep one.
In the payroll industry, it’s particularly competitive and clients often bounce between payroll service bureaus (PSBs) based simply on price. When a client leaves a PSB, that then requires sending out a sales rep to reacquire the client, often at a discount. Add in the overhead to on board that client again, and the cost quickly adds up.
Historically, payroll companies increased their value proposition by adding new products that eased the administrative burden for the business owner or payroll administrator. Tax payment services and Direct Deposit were groundbreaking in the 80’s and now are standard services that no company does without.