Turning new clients into repeat customers is all about keeping them happy. Retainers are a secret weapon for making this happen – they make things easy for clients and help build strong, long-lasting connections.
A retainer is an agreement between a client and a business. The client requests ongoing services from your business, for which they agree to pay a set fee on a recurring date.
Retainers may sound straightforward, but how you manage them is everything. Using the right retainer management software can help you organize your retainers, streamline communications, and automate recurring tasks so you can focus on the tasks that matter most.
Keep reading to find out how using software to manage retainers can supercharge your business, helping you get more done and ensure your retainers are meeting profitability goals.
Do you have clients who request the same work from you, month after month, year after year? If you do, a structured retainer agreement can save both you and your client significant time spent on paperwork and communications.
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Retainers provide steady revenue for your business while making it easier for your clients to continue working with you. Of course, the key is how you manage clients on a retainer to make sure everyone is satisfied.
Using retainer management software will not only track the tasks you’ve agreed to fulfill in your retainer contract but also help you stay on track to complete those tasks on time.
Every business is unique, but those that have recurring clients generally collect payment through retainers that fall into one of two categories: prepaid and postpaid. The good news is that retainer management software can handle both.
Prepaid or “fixed-price” retainers require the business to handle a set amount of work within a scheduled timeframe. The work may be measured by the number of hours invested or total output achieved. This type of retainer works well for projects that can be divided into well-defined tasks, such as website maintenance or bookkeeping.
Postpaid retainers are used when a client wants you to be available to complete a job when the client's need is expected to occur in the future. For a regular recurring fee, the client receives on-demand access to your skills and knowledge, even if they don’t need immediate help. Postpaid retainers are common in law offices and consulting fields like IT.
The beauty of retainer management software is that you are able to use a prepaid retainer with one client and a postpaid retainer with another, depending on the need. Retainer management software makes it possible to balance and track both your prepaid and postpaid retainers with ease. Side-by-side views of each retainer period can give you deeper insights into usage and trends. Meanwhile, you can see how much time you used (versus how much is remaining) for each of your prepaid retainers.
Retainers benefit many businesses that rely on recurring work. Using software that supports this type of work helps you gain an advantage in many use cases, including;
Retainers make the client-business relationship consistent. When you use retainer management software to manage them well, they also foster trust — ultimately leading to more referrals for your business.
Instead of tracking down your teams' efforts towards a recurring project, or sending invoices to the client and waiting for them to pay, payment is collected before the job begins, and your software takes the guesswork out of how much work your team has done within a given retainer period.
Check out our in-depth guide to retainer-based services if you’re not using retainers yet but are curious to give them a try. They might be the perfect solution for your business, and excellent retainer management software will make the transition effortless.
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Now that we’ve covered the basics of retainer agreements, let’s take a look at how you can use retainer management software to make your current system more efficient.
Retainer management software is a type of professional services automation (PSA) software optimized for high-volume recurring work.
Not all PSA software is ideal for managing retainers. However, software with the following features is designed to improve retainer-specific tasks, communications, and other management priorities.
How do you currently handle invoicing, contract templates, and other aspects of the client relationship?
Your retainer management software should consolidate client management tools. The ideal software includes features that create multiple templates for various purposes to generate recurring client work, communicate with clients and within your team, and address other issues without leaving the platform.
Sales-delivery handoff forwards the terms of the retainer contract to the team responsible for delivering the work. If any knowledge is overlooked during this crucial step, it can create friction between the business and the client.
Your software system should include a thorough sales-to-delivery transition that supports detailed knowledge sharing. Knowledge includes the project scope, expectations and timeline, the desired outcome, and lines of communication. Each team member’s role and responsibility in this process should be clearly defined and shared.
Projects are often divided among team members. However, consider how your team is handling their workload. Are they making timely progress?
To accurately understand your team capacity, you need a retainer management software that provides visibility into what each person is doing and the status of the overall job. A system that includes these insights on a project dashboard or in real-time reports is crucial in this evaluation.
The best retainer management software offers profitability insights so you can see how you’re using your budget in real time. If work is delayed or finished early, the numbers should automatically adjust.
Analyzing these reports can give you more insight into whether keeping this client on retainer is profitable. You may need to provide the client with an updated quote or modify the contract terms based on usage-tracking data.
Gone are the days of flipping calendar pages to write down repeat events. Look for features that support the scheduling and automation of recurring tasks. Consider setting a default schedule to include a cushion of a day or two to account for any delays.
Tracking hours and sharing timesheets doesn’t have to be a hassle. Software solutions that include smart timesheets and time-trackers that easily integrate with tasks to automate time-tracking and prevent duplicate work or unassigned time that could be disputed by the client.
Most software is intuitive, but some have an inevitable learning curve. Your retainer management software should provide all necessary training resources in an easy-to-access location, such as an app, webinar series, or knowledge base. You may need to pay for advanced training, but the basics should be free.
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A contract retainer offers peace of mind for you and your client, but it can take time for some clients to adapt to the new payment structure.
Thankfully, retainer management software frees up your time so you can focus on delivering consistent, high-quality work. The higher the quality of your deliverables, the more trust you will build with your client, reinforcing the choice to utilize a retainer agreement.
Poorly managed retainer work can become a headache for your team. Without the right software to organize priorities and automate tasks, you risk your team becoming overextended, overworked, and more likely to overlook key tasks. Even one forgotten task could put your relationship with your client in jeopardy.
Once you’ve chosen the right retainer management software system for your business, follow these tips to get the most from your new workflow:
When you're handling long-term projects, expect the unexpected. Rarely does everything go according to plan without a hitch. That's why it's smart to build in a bit of wiggle room in your schedule and stay flexible with your team. Life happens to everyone, and even your star players might hit a snag now and then.
That's where a retainer management software with a CRM integration really shines. It keeps everything transparent and visible across your teams. So, if someone's out unexpectedly, others can easily step in and pick up where they left off without missing a beat. It's all about making sure client needs are always met, no matter what comes up.
With the right retainer management software, you’ll discover all the ways an automated system can improve your project plan and overall efficiency. Retainer projects are rarely a one-size-fits-all endeavor. Your software should include standard as well as customizable options, complete with user-friendly features.
When you’re ready to simplify how you approach ongoing client work so you can enjoy predictable revenue, Accelo's retainer management software can help. Show how much you value your team’s time while increasing the client loyalty you’ve worked hard to build and nurture.
Schedule a demo today to see how Accelo can help you take your business to the next level.
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