3 questions to ask.
by rob nixon
the old (traditional) growth model is all internally focused. nowhere in it is the client mentioned.
more on strategy: why average project value matters | experience doesn’t mean what you think it does | why ‘steady as she goes’ isn’t enough | the final critical traits: how do your tires look? | how to calculate a value price | boost efficiency and your bottom line | 4 sales systems and some secret sauce
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the new growth equation is all about the clients. it’s about marketing to get additional clients from firms that are not giving legendary service (like hopefully you do). it’s about serving them well to keep them delighted, loyal and referring more. it’s about offering all services to them and it’s about you receiving fair compensation for the value that you create for the client.
yes, you need to be efficient and track job turnaround times and productivity. and you need to monitor the average hourly rate and other measures so you know if you are on track or not. these are all important things to quantify but they should not be the primary focus.
the primary focus should be on your clients. in our coaching club meetings and within our client network we are constantly discussing “sales visits” that each partner or client-facing team member is doing each month. we are asking (and keeping accountable) how many were completed, how many projects eventuated from the visits and what was the new revenue that was created as a result. yes, i want you to drive top-line revenue and i also want you to drive customer service and loyalty.
if it’s all about the clients then you need to be into the clients. you need to think creatively about how you can help them and you need to constantly meet with them and discuss ideas and opportunities with them.
consider this model when it comes to clients and services:
the ranking system says that the easiest thing do is to have existing clients buy existing products and services. you have client loyalty and you have already done the project with another client so there is limited research and product creation to do.
the 2nd easiest thing to do is have existing clients buy brand new services that have just been created. again you have brand loyalty and the conversion rate is extremely high so the cost of sale is dramatically reduced.
the 3rd easiest is to have a service you have done before with another client and you perform that service with a completely new client. you do not have to spend much effort creating the service and the new client will be quite receptive to it because they typically wanted additional services from the previous accountant.
and the 4th easiest (or hardest) thing to do is to win a new client and offer them something you have never done before. you’d better have a network of other firms to back you up and a suitable knowledge factory to tap into so you can say “yes” to everything.
so let’s focus on the easiest thing to do (box 1), which is existing clients buying existing products services from you.
in my live seminars i have a three-part quiz in relation to box 1. remember, it’s the easiest thing to do so i assume it has already been done!
- how many of your existing clients have purchased every single product or service that you can currently deliver?
- how many of your existing clients know that all these products and services exist? they could read the services list back to you verbatim. they may not need the services now but they could need them in the future or refer you to someone else who needs them.
- how many of your existing team members (and this includes the partners) know about every product and service that exists within the firm’s capabilities?
okay, question 1 was a trick question. the answer will be close to zero because not every client needs every product or service that you have to deliver.
the real questions and opportunities are in question 2 and 3 because the answers to those questions will be similar to question 1 as well. your clients need to know what all the services are and so do you and your team. start right there.
if you focus on your clients and you make sure that the price you charge is based on the value you contribute then you cannot go wrong – unless of course you grossly underprice the service or you take too long to complete each project.