service quality: the key to client retention

smiling man talking on phone in office

bonus: a list of 10 best practices.

by august j. aquila
price it right: how to value accounting services

in an earlier post, i discussed the cost that firms incur because of poor service. you may recall that the firm in question (a $7 million firm) lost $435,000 because of its poor service quality. once it realized this, it took immediate steps to improve its service quality. here are four things that became more evident to the firm:

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  1. the firm realized that when it comes to service quality, there is always room for improvement. the more you give your clients, the more they will expect . don’t get me wrong, there is nothing wrong with this; it’s just a fact of life. the firm started to benchmark the best practices in service quality. a list of the best practices they identified is included at the end of this post.

  1. the firm also realized that it is the client who defines service quality, not the service provider. the only thing that matters is what the client says. all clients expect a certain level of performance from their service provider. when that level is not provided, the client becomes dissatisfied. it might be as simple as the time it takes to return a call or answer a basic question.

you won’t know the client’s expectations unless you ask for them. when was the last time you asked your clients what their expectations were? unless you know, you won’t be able to determine if you met, exceeded or failed to meet their expectations. treat each client individually. service providers must identify at least the three service dimensions that are most important to the client and then measure how you are going against them.

  1. service quality is everyone’s responsibility. there is no way to delegate it. the partner can’t tell the manager and the senior on the engagement to provide quality service if he doesn’t do it also. the firm began an extensive training program for all its personnel on handling client concerns and resolving minor issues before they become major problems. the staff had the power to make decisions. they were empowered to provide quality service, not just talk about it.
  2. the firm built quality service into its processes. service quality is often a design issue. it is possible to design every service activity to include quality. the firm was able to identify three major types of service problems:
    • quality problems arise because of organizational problems such as poor products or misleading promises.
    • problems are caused by staff because they fail to follow policies or are unaware of what the firm’s policies are.
    • problems are caused by clients, such as not having schedules prepared on time or simply misusing a product.

the firm made quality service a forethought, not an afterthought. how well do you keep your service promises? if you break them, you will lose clients.

best practices

when it comes to service quality, there are several best practices that accounting firms can follow to ensure they consistently deliver excellent service. here are some key practices to consider:

  1. understand customer expectations: start by gaining a deep understanding of your customers’ needs, preferences and expectations. conduct market research, collect feedback and analyze customer data to identify their requirements accurately.
  2. set clear service standards: establish clear and measurable service standards that align with customer expectations. these standards should cover aspects such as response times, product knowledge, friendliness, problem resolution and overall customer experience.
  3. train and empower employees: invest in comprehensive training programs to equip your employees with the necessary skills and knowledge to deliver high-quality service. encourage a customer-centric culture and empower your employees to make decisions, providing them with the authority to resolve issues independently.
  4. foster effective communication: strong communication is vital in providing excellent service. ensure that employees can effectively communicate with customers and colleagues. encourage active listening, clear and concise messaging, and prompt responses to customer inquiries or concerns.
  5. personalize the client experience: tailor your service to the individual client whenever possible. use client data and information to personalize interactions, address customers by name and anticipate their needs. personalization helps create a sense of care and enhances the overall experience.
  6. continuously monitor and improve: regularly monitor service performance through client feedback, surveys and performance metrics. identify areas for improvement and take necessary actions to enhance service quality. foster a culture of continuous improvement and innovation.
  7. empathize and resolve issues promptly: when clients face issues or complaints, respond with empathy and a sense of urgency. train your employees to actively listen, acknowledge the problem and take ownership of the resolution process. promptly address client concerns to restore confidence and trust.
  8. measure and reward service excellence: implement a performance measurement system to track service-quality indicators such as client satisfaction scores, response times and issue resolution rates. recognize and reward employees who consistently deliver exceptional service, motivating them to maintain high standards.
  9. leverage technology effectively: utilize technology solutions such as customer relationship management (crm) systems to streamline processes, gather customer insights and provide efficient service. implement self-service options, chatbots or ai-powered tools to offer quick and accessible support.
  10. encourage client feedback: actively seek feedback from clients through surveys, feedback forms or online reviews. analyze this feedback to identify trends, patterns and areas for improvement. engage with clients to demonstrate that their opinions are valued and acted upon.

remember, broken promises will cost you a lot of money.

one response to “service quality: the key to client retention”

  1. tom dragicevic

    this is how we’ve grow our firm, very personalized “boutique “ service. very difficult to scale as your top people are left to manage more clients. we’re continually trying to figure it out.