Tag Archive for: client expereince

The Value of Client Feedback: Spoiler—It’s Not Only about Clients

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Recently, we’ve added the following polling question to our CPE webinars: “Does your firm have a formalized survey process for gathering client feedback?” More than 80% of respondents say they don’t.

Client feedback goes beyond electronic satisfaction surveys and net promoter scores. Meaningful intel on how your clients feel about their relationship with your firm is a key driver of client loyalty. But beyond that, there is another strategic purpose to gathering client feedback: staff retention.

A New Outcome of Client Feedback: Reduced Turnover

Firms that take time to formalize a process of gathering client feedback, evaluating consistencies and making purposeful choices about what to incorporate are better able to empower their team members to provide a meaningful experience. In contrast, firms that have no formalized way to evaluate what is important and what isn’t generally suffer (or more accurately, your people suffer) from the pressure of making every complaint, exception or suggestion appear equal. Your people may kill themselves trying to address every item individually causing redundancies, inefficiencies, employee burnout and, yes, turnover.

Client feedback is actually a path to better staff retention and even contributes to your ability to recruit and hire new people. A formalized process can be a real differentiator for your firm. We’ve helped firms large and small design, build and refine their client feedback processes. What’s common among them is a need to address the gap between learning and application. To glean value from the feedback leaders need to commit to applying what they learn by making systemic changes and engaging in training on the outcomes to be delivered. That’s where the magic happens.

Not only are there staff retention improvements, increasing the lifetime value of your client base by enhancing client retention levels significantly impacts your firm’s ability to grow its top-line because you aren’t constantly replacing revenue from clients that are leaving the firm. And loyal clients will refer business to you and serve as a reference if you ask…making it easier to attract new relationships as well.

Finally, working with loyal clients who recognize the value of the relationship with your firm, seek your counsel, are fun to serve and take your advice create for a very fulfilling practice. They create interesting professional opportunities and an enjoyable atmosphere. Who wouldn’t want to practice public accounting in an environment like that?

Understanding Satisfaction vs Loyalty

Satisfaction and loyalty are related, but not the same. Satisfaction is often tied to a project or engagement. Loyalty is tied to the relationship. Both are important – you can’t have loyalty without satisfaction first. But loyalty helps to insulate the relationship from brief periods of dissatisfaction. If I’m a loyal client, I’ll allow you the opportunity to fix a satisfaction issue. I may even become more loyal if the issue is resolved quickly and to my liking. However, if I’m merely satisfied, and then become dissatisfied I’m more likely to look for an alternative service provider because there is nothing else tethering me to the firm.

So ask yourself, “what are the proactive measures we are taking as a firm to measure and improve client loyalty?” If the answer is “not much” or “I’m not sure” you any want to consider starting at the beginning by understanding what your clients value in a relationship, and how you’re doing delivering in those key areas.

How do You Know What Clients Value? Ask!

Coordinated efforts to improve client service can yield some of the greatest returns on investment of any growth activity. To be most effective, any effort related to improving client service should germinate from feedback from your best clients. Often when firms measure satisfaction, they focus on engagement satisfaction. How satisfied were they with the outcome? How did they enjoy the experience of working with your team? What could you do differently? How would they rate the deliverables? While important, these surveys don’t adequately measure the satisfaction with the relationship—which is what drives loyalty.

Consider a formalized program to regularly learn the following from your clients:

  • What attributes of service do they associate with your firm?
  • What attributes of service are most important to them in hiring a CPA?
  • How satisfied are they with your firm’s delivery of the attributes that are most important?

Don’t leave the task of evaluating feedback to your people in an ad hoc way. Put your team first by making strategic choices about what feedback is material, and what isn’t and then create systems, processes, training and tools that will enable them to deliver. Also, make sure that when you receive positive feedback about one of your team members you share it with the rest of the firm. (Create a culture of kudos!) Positive feedback goes a long way in creating goodwill with individuals and within the firm as a whole. In doing these things, clients will begin to see and feel the difference between your firm and others in the market.

Contact us today to get started on a program for your firm.

 

Understanding and Owning Client Experience (CX)

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Securing Client Loyalty in Uncertain Times

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The 2020 coronavirus pandemic has created a lot of uncertainty. In addition to our daily routines being thrown into disorder, the accounting profession is uniquely affected in so many ways. Deadlines are shifting. Rules are changing. Even that which seemed straightforward is open to interpretation (like payroll costs!). There is comfort and security in routine, and now that has been disrupted. But, now is a perfect opportunity to strengthen client relationships and secure their loyalty. After taking care of your employees and mobilizing for their safety and well-being, your next focus should be clients. Here are some practical actions to take sooner, rather than later.

A Lifeline in Uncharted Waters

Your clients are your firm’s lifeline and will continue to be through the months ahead. And in many ways you are theirs as well.  When there is uncertainty people will turn to people they know for help as opposed to seeking out new relationships. They will count on those they trust most – like you.  So if you haven’t already been checking in on your clients’ well-being it’s time to start. Do not put it off until you think the economic picture is clearer or the “unknowns” become certain (which is likely to take a very long time). Instead call, or better yet video-conference, with your clients to see how they are faring. Ask how their families, friends and coworkers are doing. Be prepared for them to vent if needed—and let them.

If you create a stronger dialogue with your clients, you’ll be in a better position to offer relevant help and support as they navigate their way through the uncharted waters ahead. And the more they appreciate your support; the more loyal they’ll be to you. They may even recommend other clients to you who are not having the same experience.

Here are some other ways to support clients in the weeks and months ahead:

  1. Talk with them – your clients probably won’t know the full impact of the pandemic yet, but they probably will have a sense of the immediate repercussions and/or opportunities. Find out what these are. How can you help? Even if you don’t have the expertise to help, can you connect them with a resource? Can you provide information that will help them access the help they need elsewhere?
  2. Focus on certainty in the short-term – the world is still turning and people will still need certain products and services. Some of your client may be offering these products and services – so help them understand how the current environment affects their demand. There are also some opportunities to help clients navigate government relief packages in the short term. Finally, help your clients think differently about their business and be a resource to them as they pivot. For example, are there decisions clients can make now to enable them to move forward down a certain path (maybe without all the information, but with enough) vs taking a “wait and see” approach for everything?
  3. Support their longer-term scenario and contingency planning – your clients will want to reduce risk as much as possible and having a course of action for various scenarios helps. It’s likely there are many ways your firm can help: re-forecasting, cash management, financial statement preparation and other CAS and advisory services will be at the forefront ways you can help. The CARES act also offers opportunities for specialty services such as cost segregation, nexus consulting and planning, SALT and R&D credits which may also be useful to your clients based on their situation. During the last recession there was an increased demand for insolvency and bankruptcy consulting. It will be important to find ways to involve less experienced staff as much as possible so think about what you can delegate to your team members.
  4. Continue to stay on top of the issues which will affect them – these could be state-based, industry, organizational or even personal issues. Be alert to how the latest developments may impact on them and offer timely, relevant advice or support when it’s needed. The more you understand about your clients, the more relevant issues you’ll spot. Make everyone on your team part of the effort by encouraging knowledge share internally and defining a process for how/when/where it occurs. Better yet, let your younger staff define and communicate the process!
  5. Be accessible – if it’s difficult to get hold of you and your team, clients may lose some faith in you. Although you may not have all the answers to their questions, being available and listening to them is important. Especially if your people are working in an environment (remote) which is different from the norm, it’s critical to make sure clients know how to reach their primary contact(s). A word of warning, this does not mean you must offer 24/7 access. As your people adjust to working from home it’s tempting to blur the boundary between home time and work time. Allow your people to set their “office hours”— those times in which they commit to taking calls. Establish and communicate (or reiterate) to clients and your employees your firm’s responsiveness policy. Your people are stressed and worried enough so don’t pile on by making them feel like they are constantly on call.
  6. Do what you say you’ll do, when you said you’d do it – accountability is one of the pillars of trust. Now more than ever clients want to be able to count on something…and that something is you. Minimize client turnover by ensuring you continue delivering a high-quality service they have come to know from you. This is the time to ask your clients what they need from the relationship (not the services they need, but attributes of the service like accessibility, being proactive, candidness, etc.). If your definition of what you think they need and their definition of what they thing they need are not the same they may be disappointed with their experience and seek an alternative.
  7. Think about alternative payment terms – If your firm has practiced some kind of prepayment strategy for services your firm is likely in a better cash situation than firms that have not. However, before clients start asking for fee reductions, identify the “A” clients you want to invest in so you know which clients you should be willing to make fee concessions for if the issue comes up. Be ready with a plan to talk with these clients so you are not taken by surprise if they ask. You don’t want to discount the fees of a “D” client in bad times and perpetuate the pain going forward. So as difficult as it may seem when you are managing cash flow, be willing to let some of those clients go.

We recommend when a client asks about reduced fees, first explore changes in scope that can impact the total fee. For example:

  • Will a review be okay for a year or two vs. an audit?
  • Can we do a collateral only audit vs. a full scope engagement?
  • Can we arrange a term payment plan for the fees to make it easier?

Most importantly, be willing to talk with clients about fees. Don’t hesitate, or act angry that they asked or assume the client wants a reduction. Empathize. Strategize. If you have to invest in a client, make sure they know it is a temporary situation and you are willing to do it because they are an important client of the firm and you want to help.

Doubling down on client loyalty will help steady your firm during this time of transition and enable you to deliver the kind of value that ensures clients for life.