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Close the door first, then build the wall
For firms that want to take client retention seriously, now could be the best ever time to carry out a survey.
Surveys are a practical common sense tactic that firms can easily implement. We are in the middle of a recession, there are going to be massive cuts in government spending and higher taxes, so it is more likely than ever that your client’s situation will change. This change may result in new and different challenges for your clients and/or a change in their perspective.
Perhaps one client will need some extra support getting bank finance, while another will want to outsource their bookkeeping because they have made an employee redundant. Another may have made a decision to reduce overheads (including accountancy fees) by 10%. By the way, reducing accountancy fees doesn’t necessary mean lower margins; it could just mean a change in the scope or working arrangement and it may only be temporary.
If you do not pick up on change in your client’s world then you leave the door open for the client to be snatched by your competition before you get a chance to build the client defence wall.
If you haven’t done a survey before or for a while, I’d recommend you just be open and honest with clients and say you value their business and simply want to check that all is well between you.
You can do this yourself verbally or in a structured manner with a survey form. You can even bring in a third party to make follow up reminder calls or to interview clients. It may be that some clients will be more open up and express concerns more freely compared to talking with you, especially if it is confidential.
When you send the survey or talk to the clients, you can acknowledge that times are tough and let them know that you are there to help. Explain that you know the working relationship may need to be reviewed to allow for changes in their situation. Explain that the survey is one way of improving the communication and let clients know you intend to send out a quarterly client updates.
Not keeping in touch and not appreciating/understanding a client’s changing mindset is precisely what happened to a firm I consulted at the end of last year. They were oblivious to some of their clients’ true situations. They are now kicking themselves because this resulted in lost work; not just because businesses going bust but also due unknown discontent. These clients were some of the biggest and/or most profitable and surveys are a low cost way of protecting your most valuable asset.
On the other hand a bookkeeper implemented our recommendation of an induction reviews for new clients as well as carrying out service reviews every six months. It is early days but they report they feel the relationships are stronger and this has aided referrals.
If you are not going to do a firm-wide survey then consider spot-checks. Look for warning signs that all may not be well. These include:
Slow payment of billsLack of communication, returning calls and emailsMaking business decisions without involving you
Understand that most firms lose most clients because of perceived indifference created by a lack of communication and responsiveness. Surveys shows confidence and a concern for the client and count as a proactive communication.
Tip - take care and always survey around trigger points including change of people at your firm or the clients, especially the bookkeeper!
Tip - if you want to go stage further then give clients a form with a place to sign that they are happy. Getting people to tell you something and then sign their agreement is a strategy which can be drawn from Dr Robert Cialdini book ‘Influence: Science and Practice’. When someone says something and then sign it makes them more committed - humans are hard-wired with a desire to be consistent. So, with this in mind don’t have a place for clients to sign the form if they are unhappy!
Bob Harper