What I want to share with you today is how to improve your efficiency and bottom line profits by grading your clients.
Economy Class Vs. Business Class
Flying business class is great. You’ve got a great seat, loads of space, you feel very relaxed, you’re offered champagne, even a massage if you really wanted.
One the other hand we have economy class. The seats are a bit tighter, the food trolley will come around eventually, it’s not too bad but after 7 hours of sitting on top of the person next to you it can get tiring.
Different Pricing Points = Different Experiences
Now in your practice you have high profit enjoyable clients, and on the other hand you have lower profit not so enjoyable clients. And the question is “are they all being treated equally?”
Because if you and your team are treating them equally, it means that the higher-profit enjoyable clients are not getting the service they really deserve, and the lower-profit not so enjoyable clients are getting over-serviced. And what that means for you and your team is that there’s a lot of pressure, you’re overworked, and it all comes back to you putting a lot of pressure on your shoulders.
Now in order to get the customer services packages right, the starting point is grading our clients. When was the last time in your practice that you sat down and graded your entire client base?
Today I want to share with you our 4-step client grading system.
Step 1 – Define Your Grades Clearly
This has to happen from yourself, or somebody in your senior time, either way it has to come from the top. So sit down and decide; what are the criteria? What exactly is a grade? E.g. If you have A+, A, B, C, D, what is an A client? What is a B client? Etc. You need to come up with your criteria and then define them clearly, because if you don’t know what it is then your team won’t either.
Step 2 – Rank From Best To Worst
Once you have your criteria, the next step is to rank your clients from best to worst. Mark them against your criteria e.g. most profitable, most enjoyable to work with etc. Give each one a score, then calculate an average, and rank those averages from best to worst.
Step 3 – Maximum 20 A+
I would strongly suggest you have an A+ category and that there’s a maximum of 20 clients in here. These are the people that you want to spend a lot of time with, and the saying “birds of a feather flock together” means that these clients will know other people just like themselves, meaning the referrals they give you will be the exact clients you want.
Look at the bottom 20% of your client list and address that. Chances are you might need to move a few of them on, because they may not be worth it, and/or increase their prices to make it more worth your while. And what I’ve found is that when you increase the prices of the bottom 20%, a few will stay and pay an increased price, and this increase in prices will often pay for the ones who leave.
Once you and your team have completed grading your clients, the next step is to determine what exactly each grade will be getting in terms of customer service.
So I’ve just shared with you our 4-step client grading system
4. Address bottom 20%
So if you look at your practice, have you already graded your clients? Or are you still treating all of them like they’re in business class, even though a lot of them are paying to be in economy class?
Leave a comment below I’d love to hear about you and your clients.