Properly managed client relationships allow the firm to reap a windfall with repeat business. Further, the firm should strive to expand on the relationship so that they eventually service all of the appropriate client needs.
Managing clients and their expectations is not, however, an easy task. To the contrary, there are several things to keep in mind when managing your client relationships.
First, and perhaps most importantly, you must always remember to manage expectations concerning service and results. Successful professionals face the difficult challenge of maintaining their relationships while being careful not to overextend themselves. There are only so many hours in the day, and the professional can be in only one place at a time. Therefore, it is important that each client understand from the beginning which member of the firm will be primarily responsible for servicing its needs. The firm must be careful to match compatible personalities and provide the client with proficient and competent service. If the client expects the firm’s lead rainmaker to process its matter, the client will likely be disappointed if someone else is assigned the job. However, if the firm manages the client’s expectations, it can avoid this unpleasant scenario.
In addition, it is important to manage expectations concerning results.
Nothing is guaranteed and there are very few certainties in the professional services business. Therefore, be careful when guaranteeing results. If you come up short, the client relationship may be permanently damaged. However, if you explain to the client that there are numerous contingencies, many of which are beyond your control, the client will be prepared for the bumps along the way. Further, if you discuss with your clients the obstacles to overcome in servicing their needs, your clients will be more appreciative when you fulfill their needs and provide a successful result.
Second, if you take care of your clients, they will take care of you through repeat business and referrals. Exhibit 5.2 illustrates this point.
There are many professional services firms that can provide acceptable solutions or results. The differentiating factor, however, is to ensure that each client enjoys the process while receiving good results. The X on Exhibit 5.2 denotes a poor client experience. Client X did not receive very good results and did not enjoy the process. It is not likely that this client will provide you with repeat business or referrals. More troubling, however, is the fact that you are now in danger of a former client talking negatively about your firm and its service.
The inverse of Client X is Client Z. Where Client X received a poor result, Client Z received a very good result. Perhaps just as important, however, is the fact that Client Z enjoyed the process. Client Z may have
136
The Front Office: Driving Sales and Growth
Z
Enjoyable
The process
X
Difficult
Unsuccessful
Results
Successful
Exhibit 5.2
Professional Services Firm Delivery
Outcome versus Client Satisfaction
enjoyed the process for a wide array of reasons, including the attention provided, the speed with which the result was obtained, and /or the cost associated with the result. Regardless, Client Z not only will be a repeat client and refer business to the firm but also will be likely to praise the firm’s performance to all who will listen. Client Z just became the firm’s most effective and cost-efficient source of marketing.
Chart your clients on a graph like this to see where the majority of your clients fall.
When considering how to make the process more enjoyable, remember
these basic tenets:
• The client should always feel that he or she has your full and undivided attention when you are discussing his or her goals and concerns.
• Never tell a client that you are too busy to talk.
• Always return your client’s telephone calls and e-mail messages as soon as possible, but at a minimum within the same day.
• Treat everyone the same—from the most senior officer to the newest staff member—because you never know who will be making the decisions next year or even next month.
Marketing and Business Development
137
Chapter 12 covers the topic of effective client service delivery in more detail.
Advertising as a Means of Driving Business
Initially, the consensus among professional services firms is that mass marketing and advertisements are not an effective way to drive business. Part of the reason for this negative attitude toward advertising stems from the fact that the results are difficult to quantify, and it is difficult to find a sufficiently targeted venue for the specific service and client base. Like every rule, however, there are exceptions.
Plaintiffs’ attorneys have experienced a great deal of success advertising to the public at large. However, the success of these sometimes-massive campaigns depends on their focus. For example, many plaintiffs’ attorneys arrange to have their advertisements aired during the day, relying on the fact that those suffering from injuries are at home and watching television. Based on the success of many personal injury attorneys, it is clear that advertising can work with certain professional services models.
While advertising can directly drive business, it is more often useful in increasing brand awareness. If the firm provides a service targeted to a mass market, such as personal injury, brand awareness among the public, which can be achieved through advertising, is beneficial. However, if the firm elects to advertise, make sure that the advertisement is focused toward the target market.
Additionally, when advertising, make sure to highlight the firm’s recent and most significant accomplishments. It can be effective to advertise that you were able to save a client significant resources through your efforts or that you procured a significant win for a client. The key is to focus on your successes, particularly those that the target market will view as significant.
Finally, always advertise with a call to action. Passive advertisements are not very effective. It is not very effective to tell everyone how great the firm is without a specific directive to act. It is, however, compelling to command your target market to pick up the phone and give you a call.
Using Internal Sales and Marketing
Personnel to Drive Business
In addition to using its partners or members, some professional services firms take advantage of internal sales personnel as a means of marketing and driving business. This approach was the focus of Chapter 4.
138
The Front Office: Driving Sales and Growth
Using Professional Marketing and
Public Relations Firms
Professional services firms also use marketing and public relations firms to assist them in developing business. Marketing and public relations firms specialize in developing name and brand recognition across selected segments of the population. Some of the many tools at their disposal include media such as television, newspapers, and periodicals. Additionally, these firms can assist in securing public speaking engagements, which, as we have discussed, are valuable tools for developing business. However, this technique is not widely used by professional services firms for several reasons:
• Outsourcing your marketing efforts is widely viewed as a passive method of developing business and, therefore, is not a common technique among professional services firms. More specifically, the outsourcing model does not require or even allow for much, if any, interaction between professionals and their clients or prospective clients. Rather, because this model focuses on developing the recognition of brands, this model has primarily been adopted by companies selling their products to the public at large, not professional services firms.
• As with advertising, many firms have chosen to steer away from the outsourcing model because it is can be difficult to quantify the return on your investment. Human and financial resources are limited. Therefore, most firms are more comfortable with techniques that either don’t require a large capital investment or those for which they can quantify a return on investment.
• The outsourcing model can be costly and a severe strain on the financial resources of a smaller professional services firm.
• This model should only be considered if the firm is willing to expend significant resources (time and money) on the efforts of your external marketing team. There are enough large companies to keep the marketing and public relations firms busy so that the smaller professional services firms are often not attractive targets for them. As a result, the smaller firm will receive little, if any, attention.
The Pitch
The focus of this chapter has been on developing business. However, most of the techniques and models discussed herein will not, in and of themselves, result in paying clients. There is usually an additional step. Techniques such as relationship building and public speaking will open the door to opportunities, but before those opportunities develop into paying clients, you will need to
Marketing and Business Development
139
close the deal. At this point, the pitch becomes the most important area of focus. Developing a strong pitch is multidimensional. Rob Levinson, a columnist for Startup Journal, wrote an article titled, “Help! I Got the Meeting, Now What Should I Do?” In that article, Levinson discussed the three stages for pitching business to prospective clients: (1) the prepresentation, (2) the presentation itself, and (3) the postpresentation. Many of the techniques involved in these stages have been discussed and are used on a daily basis to develop business.2 While the topic of proposals and qualification management is covered in detail in Chapter 7, we brief ly address a few points here.