Although there have recently been promising signs of an economic recovery, the challenge of retaining clients continues. As economic conditions slowly improve, accountants need to challenge themselves to reconsider how client retention strategies should be incorporated into their overall client service models.

Client retention strategies should be employed year-round to cultivate healthy, profitable and long-lasting relationships. In order to be effective, these strategies must become a deeply ingrained aspect of the firm's culture, not a one-time initiative or something that can be dismissed as a fad or management "flavor of the month." Beyond price concessions, accounting firms should focus their time, energy and attention on the real issues of client retention, even though there are many approaches firms can take that are easy to implement and highly effective.

Ignoring client retention issues or treating them as short-term initiatives that can be abandoned as soon as the economy picks up again can be a serious mistake.

A critical first step in this process is to clearly define what type of client service experience your firm is striving to create. From the initial contact with a prospective client, through the proposal process, during compliance engagements and then throughout the balance of the year, firms need to pay close attention to fully integrating their desired client service experience. This must encompass the interactions that clients have with everyone at the firm, from the receptionist to the accounting professionals to the administrative staff. Everyone at the firm contributes to the client service experience, and it's important for each person to feel invested and part of the team.

As part of that experience, firms need to carefully assess their client segmentation and then determine the best way to deliver appropriate client services. Back when the economy was good, most accountants only had to hang out a shingle in order to find clients. But that was then - now, it's more important than ever for accountants to decide what client segments and industries they want to service. It may seem like a great idea to attract a client in a growth industry such as wind power, but it makes much more sense to thoughtfully and strategically add several clients in that industry or segment, as well as some in adjacent industries. This allows you to leverage your experience and expertise.

WHAT DO CLIENTS WANT?

Some accountants may take the opposite point of view and eagerly take any client who walks through the door. But in order to fully serve and retain the most profitable clients, accountants need to understand which clients they most want to keep. Do they want to focus their time and attention on individual clients who need their 1040 federal tax forms filed once a year, or do they want to target $250 million manufacturing clients? It's very difficult for one partner, and all but the largest firms, to effectively serve every segment of the market.

Once they have determined their client focus, accountants need to actively reach out to those clients to measure satisfaction, identify additional needs and educate them on other service capabilities.

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