HOW TO RETAIN CLIENTS? KEEP YOUR PEOPLE HAPPY!

Tuesday, August 24th, 2010

You have heard it several times by now…… the #1 MAP concern for all size CPA firms is CLIENT RETENTION. After 15 years, it replaced FINDING & KEEPING GOOD PEOPLE on the Top MAP concerns listing.

Many firms, this summer, have reported that they are enhancing client service in every way possible.

Many are using the obvious tactics:

Return phone calls within 4 hours
Respond to emails within 24 hours
Send out client satisfaction surveys
Communicate the status of the engagement often (to the client)
Better planning of the engagement upfront, etc.
In fact, you can read 43 Steps to Gold-Plated Client Service on CPATrendlines

All of this is very good, however, I STILL believe that happy employees equates to happy and loyal clients.

A brief article in Fortune magazine spotlights American Express, the credit card company. They wanted to give their customer service department a makeover. The first step: asking employees what changes they wanted to see.

I’ve been talking a lot about Herb Kelleher in my presentations recently. Here’s why:

Kelleher’s approach to management offers a series of paradoxes. Consider, for example, his philosophy on shareholders. In 2002, Morningstar Inc. recognized Kelleher and Parker as co-CEOs of the Year for their record of maximizing shareholder value. And yet, as Kelleher explains, he has always placed the needs of shareholders last, after employees and customers.

Sure, this fall you need to focus on your clients MORE than ever. But please don’t forget your team. Many, many firms have frozen wages, cut back on training and even some benefits in recent months. Investing in your people is never a bad idea. The American Express employees wanted better pay, flexible schedules and more career development. American Express delivered. They boosted their service margins by 10%.

What are you doing for your people this fall? Need ideas, give me a call.

"Great service starts with the people who deliver it. We want American Express to be the company people recommend to their friends."
Ken Chenault, CEO, American Express