Bet you want to grow your fees in 2010?
…then look at raising the eyebrows of your clients!
It’s not surprising to discover the three most effective ways of getting new clients (based on the successes I’ve seen across 19 firms in 2009) are:
1. Referrals from existing clients
2. Referrals from influencers (bankers, solicitors, IFA’s etc)
3. Events
The number one source being referrals from existing clients. And if it’s not the number one source in your firm it should be!
Why?
Because only when you get referrals from your clients do you know they are truly happy – and a very well researched article at wikipedia agrees. The article suggests the willingness of your clients to refer is the only true judge of client loyalty!
Also…
When you do everything possible to encourage client loyalty they are more likely to stay – and I’m guessing the last thing you want is to be finding new clients whilst watching old established clients leave your firm?
So how do you raise the eyebrows of your clients (in a good way)?
Simply exceed your clients’ expectations!
The better you get at managing client expectations and exceeding their expectations the more likely you’ll see them raise their eyebrows. And the more likely you are to keep all your clients and all your existing fees. Plus your clients are more likely to refer you to others they know.
No rocket science here I’m afraid – BUT WHY IS IT RARELY APPLIED BY ACCOUNTANCY FIRMS?
Mainly because their definition of accountancy does not clearly focus on the expectations of clients. Instead firms focus on getting the technical work done.
And yes the technical work must get done, and get done well.
However the stuff your A-class clients value the most is the interaction they have with you, their accountant. The quality of the relationship you have with your clients makes a massive difference! Have you ever asked them what their expectations are around speed of response, speed of delivery, interpretation and guidance, how often they’d like to hear from you?
Interpretation, explanation, guidance and support is what matters most to your clients – not the technical detail of a set of accounts.
OK, I know!…
…you’ve heard it all before…
…It’s just that I’m stunned by the lack of commitment towards processes that manage, improve and stimulate the relationship between most accountancy firms and their clients.
Whenever the firms I work with apply some science to staying in touch with their most valuable clients they amazingly hang on to clients they would otherwise have lost. PLUS they start a flow of referrals that previously seemed unlikely (if not impossible)! A conversation yesterday included this comment from a managing partner we’ve been working with:
“One of my clients now realises I am serious about getting new business through recommendations from him (because I’ve asked him several times in the last 6 months). He has recently introduced me to two valuable and very warm prospects.”
You don’t say!
What am I advocating?
Create processes to manage, improve and stimulate a better relationship between you and your clients (including one linked to client expectations). Coupled with processes asking for referrals and recommendations. Simple stuff.
Vive la revolution!!!
1. The starting point I suggest is improve the relationship – improve your conversations:
Work out what matters most to your clients and then deliver on it.
1. Ask them what matters most. And I suggest you work on discussing three aspects of their experience of working with your firm – timing expectations – and technical work expectations – and relationship expectations
2. Capture client expectaions. Yes write them down! And then share them with your team and work out how you at least deliver on their expectations – although you might be wise to do what you can to exceed their expectations slightly (start by only focussing on your top 20% clients to make this project more achievable)
3. Do the work necessary to exceed their expectations
No rocket science. Just simple, solid process improvement aimed at raising your clients’ eyebrows (in a good way).
2. Next. Work out several (at least five) processes to capture recommendations from your clients and put them to work systematically
Customer feedback processes should be a source of recommendations. Events too can generate leads (we got 17 from a recent event in Lancashire). LinkedIn can be tool that generates referrals too. Your client contact programme can and should also generate referrals. What about a wow process for new clients with a focus on getting referrals early. And what about joint lunches with clients and bank managers? More on referrals processes in a future article.
How else can accountants ‘raise the eybrows’ of their clients? Feel free to comment on this article and ask any questions that bug you or you want to resolve.
Happy hunting!
Paul Shrimpling
PS You can see this article on AccountingWeb http://www.accountingweb.co.uk/topic/practice/how-grow-your-fees-2010/399281