Client service: A new approach

An area we often neglect or overlook when planning for the new year is client service. Possibly were comfortable with our service standards because we do not appear to have a problem with client retention. However, the ultimate test of client loyalty is how many referrals and personal introductions we get from our clients. 

Perhaps it is time for a new approach to client service - not in the traditional customer is king sense, but on how to equate client satisfaction with practice profitability. Does the concept surprise you? It shouldn't, because client service is one of the principal, although often under utilised drivers of profitability in any business.

Client service enhances profitability. Here are 10 reasons why.

1. New client acquisition costs heavily outweigh the cost of repeat business.

2. Satisfied clients are often the most effective advertising spokesmen available to advisers - and theyre free.

3. Referrals and personal introductions improve new client conversion rates and reduce acquisition costs.

4. Financial needs are never static and a satisfied client will return, again and again, to top up or address new requirements.

5. Excellent relationships between clients and advisers provide the gateway to doing business with the rest of the family and, even more importantly, with heirs.

6. Client retention results in a healthy annuity income through renewals and trail fees.
7. True client satisfaction closes the door to competition.

8. Satisfied clients usually result in satisfied staff - those who provided the service in the process.

9. The 80/20 rule comes into play and by concentrating on A-segment clients, the adviser can afford to deliver exemplary service that, in return, generates gratifying rewards.

10. During adverse market conditions, satisfied clients are far more likely to rely on the adviser rather than make what may turn out to be a rash decision on their own.

Each of these 10 issues contribute, directly or indirectly, to the bottom line - some more than others.
 
In practice
Take each point and consider how you can make use of it in your practice. Is there an opportunity to switch your focus from new clients to revisiting existing clients? Are you doing something constructive about getting referrals and introductions from your A-category clients? Could a 'meet the heir' strategy be valuable in your practice? Do you have a staff incentive scheme that acknowledges client satisfaction? Do you make a point of visiting a number of A-category clients each month? Have you considered gauging real client feelings through a client satisfaction survey?

Every practice is different, but it's highly unlikely that there is nothing to gain from adopting a special client servicing approach in your business. Chances are you will end up with a true win-win situation that will result in enhanced client satisfaction and improved profitability.