Retaining quality existing clients is more important than finding new ones and far more cost-effective.

THE DEVELOPMENT AND BREAKDOWN OF A CLIENT RELATIONSHIP

Professional Practice client development training tends to concentrate on actively seeking new accounts and underplays the need to retain existing clients. New clients cost much more than retaining existing ones. The ability to identify early that the relationship with the client is decaying is crucial.

The analogy between the practice / client relationship and a marriage can be helpful in identifying the early warning signs of a deteriorating client relationship. Following the analogy to divorce shows how to avoid damage to your practice in the aftermath of such a break.

THE COURTSHIP

"You are the most successful company in the area and need professional advice of the highest calibre to continue your profitable growth. We have considerable experience in your field and a meeting would be mutually beneficial".

("You're the nicest girl I've ever net."

"Don't we have a lot in common?"

"How about a date?"

"Not tonight, I'm washing my hair.")

Sometimes the initial approach is turned down. This refusal could be strategic and not indicative of a policy of "no change". In many cases the client would expect you to be persistent.

THE ENGAGEMENT

"Why not let us handle part of your professional needs? We would be delighted to do a presentation to your board".

("Will you marry me?"

"I'll ask your parents for your hand.")

At this stage the ability to present professionally and convincingly is very often the key in winning over the prospective client. Client / practice comparability must be highlighted and short and long-term objectives must be discussed.

THE WEDDING DAY

"We will look after your interests in a responsible manner and give advice and consideration to your total business operations."

("I promise to...")

At this stage both parties view the relationship with a great deal of optimism and have very positive feelings towards each other.

THE HONEYMOON

"The signs are this is a good business relationship. Co-operation is excellent and we are rapidly learning new things about each other's organisation."

("I'll always love you."

"There's so much more to you than I imagined.")

At this stage the co-operation is leading to other business within the client's organisation and relationships are less guarded leading to a period of high participation and satisfaction.

THE MARRIAGE

"There appears to be a slight problem in operational aspects and there is a minor clash of personalities in one or two areas. We have to consider priorities in the light of other client's needs. We never realised how complex your business is."

(Night out with the boys.

Working late at the office.

"You don't understand me.")

Operational problems and personality clashes are inevitable over the time span of client association and it is important that any such problems are tackled quickly and assertively if the relationship is not to be strained.

COMPLACENCY

"We understand that there are ongoing concerns but we will respond to them as we see appropriate. You are still our biggest client. We have worked together over a long period and any real problems will be sorted out."

"There's no need for any special attention."

("Of course I still love you."

"You don't bring me flowers any more.")

SEEKING AFFAIRS

"The client doesn't seem to be very friendly any more."

"The chief executive is impossible to see and information is slow to appear. We understand that one of our competitors is making a determined bid to take this client from us."

("Your dinner is in the oven."

"It's a reunion with an old school friend.")

There are many signs that a once healthy relationship is now in danger of disintegrating and it is critical to respond in a positive fashion. Standards of excellence must be re-introduced if they have been allowed to lapse and great emphasis must be placed on personal relationships. It is often a good idea to treat the client as a brand new one, stressing how much their business means to you.

THE BREAKDOWN

"They are querying our account and the signs are that we will not be retained."

("We have nothing in common anymore.")

The client always has the ultimate sanction - to take his business elsewhere - and this has to be recognised. During the wind-up period, however, the need for operational excellence is vital in order that the break, when it does occur, is clean and there will be no recriminations.

DIVORCE

"The last thing we want is for the client to discuss our latter-day problems. We need more new accounts to compensate for losing this one."

("Everyone will know why we broke up.")

If operating standards have been maintained professional reputations can remain intact. Changing one's professional advisers is a fact of business life, albeit a very expensive one.

THE AFTERMATH

"To compensate for the loss of our major client we must quickly secure short-term work. We realise morale could be low but the situation calls for action."

("Loneliness, doubtful relationships and one-night stands.")

The temptation to become over-active in new client development is strong and must be avoided. It is important to maintain employee morale by keeping to any medium and long-term strategies. It there is to be a pursuit of short-term client development is must be ensured that it in no way compromises normal standards.

The cost of keeping clients is considerably less than those of seeking out and acquiring new ones. Operational costs are less when using established familiar systems and no time is wasted in getting to know the politics and culture of the new organisation.

The establishment of a "Client Retention Budget" is worth considering. The fact that a budget exists will make personnel constantly aware of the need to actively pursue good client relationships. You could even label the budget account "Flowers to our clients" and assign large sums to it."

A list of signs that a client relationships is breaking down:-

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(Original material developed by Consultancy Skills Training)