“If only we had some more clients Rudi…”
So many practice owners focus their attention heavily on searching for and attempting to sign up new clients.
But is this truly the best way to create a profitable and successful accountancy practice?
Instead of constantly hunting for new clients, why not shift your focus on to the clients you already have?
But when I say this to some of the accountants I work with, they initially question why.
They want to know why they shouldn’t spend the majority of their time looking for new clients.
And this is because they think that (more) new clients mean more money, and to a certain extent they’re right…
But thinking like this means they’re not looking at the bigger picture.
There are plenty of valid reasons why focusing on the clients you already have is more beneficial than constantly trying to attract new prospects.
For example, did you know that attracting a new client costs five times more than keeping an existing client?
And, that the probability of selling to an existing client is between 60% and 70%, while the probability of selling to a new prospect is only between 5% and 20%?
That’s a difference of around 50%!
Existing clients are also 50% more likely to try new services and spend 31% more when compared to new clients.
Those are some pretty compelling statistics, aren’t they?
So, instead of putting all your eggs in one basket and trying to woo potential new clients and spending a lot of money, time and energy on this, I instead recommend working on improving the experience you provide to the clients you already have.
After all, it’s cheaper to spend money successfully retaining the clients you already have on your books than searching for new ones.
“It takes months to find a client and only seconds to lose one” – Vince Lombardi
Take some time to think about the experience your clients are receiving from your practice at the moment. Is it the very best it could be in all aspects?
Or, are you focusing so much attention on sourcing and courting new clients and prospects that your current clients aren’t getting the attention and the service that they deserve?
You need to ensure your existing clients are getting such great service consistently that they wouldn’t think of going anywhere else.
Make sure they’re well looked after, and you’ll reap the benefits of having loyal clients who consistently spend money and whom you can try to upsell new services to also.
Increasing client retention rates by 5% increases profits by between 25% and 95%. If that isn’t enough to convince you then I don’t know what is!
A little hard work on retaining the clients you already have will save the high costs of signing on new ones. Think about creating systemised processes for dealing with some aspects of the client service you deliver so that nothing is ever forgotten or overlooked.
Here are some articles to get you started on that:
- 10 ways to improve your client retention
- 3 ways to maintain a human touch in a digital accounting world
- Is your practice a doing organisation, or a customer service organisation?
- 7 ways to manage your client’s expectations
- A less in why systemised customer services is so crucial
Your client retention rates will increase, and you’ll reap the benefits of having a consistent stream of steady income from clients who are loyal to your business and happy with the service you provide them.