Curtis McLemore is a second-generation owner of McLemore Building Maintenance Inc., which has been based out of Houston since 1970. He has held the reins of CEO since 2010, taking the business to the next level with approximately 1,500 employees who work together to generate more than $70 million in annualized revenue.
One of the big keys to the firm’s success has been its client retention. “Client retention is a performance metric within our management compensation program,” McLemore says. “If a contractor wants to keep a client’s janitorial spend flowing into their pockets, then keep part of that spend flowing into the management’s.”
Reasons Why Clients Stray, and Strategies for Keeping Them in the Fold
It’s important to recognize that client retention has changed during this decade with market shifts such as hybrid workplaces and post-COVID fallout. “In the past few years,” McLemore says, “more decisions are being made by multiple decision makers who might be placing more priority on pricing metrics versus service metrics. Then, when services do not reach the threshold of performance expected, the correlation between the achievement of pricing metrics at the expense of service metrics isn’t acknowledged.”
It’s a proverbial minefield to navigate, and missteps can be costly. In McLemore’s view, some of the most common reasons clients will leave for a competitor are point of contact changes, different levels of expectation compared to the scope of work, and going back to a vendor with whom the client has had previous experience.
Of course, contract expiration is perhaps the biggest reason for client turnover and one that must be addressed above all others. “One- to five-year deals are a staple within the industry, at which point they are commonly cycled through the competitive bid process,” McLemore says. “There are two ways to address this. One: approach the client at least six months in advance of the contract expiration and negotiate a new deal before it hits the streets. Or two: negotiate a longer contract period at the outset of the contract.”
McLemore also recommends establishing multiple levels of contacts up and down the client’s personnel hierarchy that touch and influence the contract. “Client communication is a key element of client retention,” he says. “Knowing the contract is in the low-risk stage before the bid process has commenced — versus at high-risk when the decision to make a change has already been decided — is imperative. Listening to the client and building a relationship can be more important than the actual level of service.”
Fielding Complaints, Coming Up With the Correct Responses
McLemore urges that a building services firm should check in with its clients outside of routine service visits at least once per month. When complaints are lodged or a service issue becomes apparent, what is the best way to respond in order to ensure those clients stay satisfied? “Again, maintain open lines of communication,” McLemore says. “Get to know your clients’ individual preferences and needs. In many cases, the scope of work is merely a guideline.”
There are also some value-added services that can help with retention. These range from green cleaning to specialized floor care to emergency response. McLemore notes that his company is in the labor management business. “Cleaning is our core competency. However, there are many ancillary services where we can use our ability to effectively manage a workforce in service tasks and responsibilities,” he says. “Landscape, porter, trash, fill-ins/temps — if it involves seeking, qualifying, hiring, and managing a workforce, why not us? We even have one account where we provide a full-time employee . . . as a cook!”
He adds, “There is also a direct correlation between training and client retention. Training reduces the frequency and occurrences of the issues that get us fired. These issues can be as elementary as the proper steps to secure a client's facility at the end of a shift to a more sensitive issue like when a crew member encounters an item of significant value aimlessly discarded. In both scenarios, a properly trained crew member can respond accordingly to eliminate the occurrence of an issue before they even start."
McLemore is especially proud of those handful of clients his firm has lost over the years and eventually won back. In such instances, the first thing to figure out is exactly why the firm lost them. “Then, before walking back in the door ask yourself, ‘Am I willing to make the necessary changes to be successful?’ If nothing changes, then nothing will change,” he says.
It all comes down to building relationships. “Everybody can clean,” McLemore says. “But if you have a relationship, you can miss a few trash cans. If you have a relationship, you can renegotiate. If you have a relationship, they will roll your contract over when it comes due. No relationship? Sharpen your pencil!”