Small Business Matters
by Ken Hugins, CPA

Relationship Marketing

For professional service firms, nothing is more important than relationships with clients. These are the life force that keeps revenue flowing and clients coming back for more. Key to strong relationships is understanding your client's view of the firm and what he or she values.

What do clients want?

Clients turn to professionals when they're in pain. They know they need somebody to guide them through problems. They choose a professional to help them with this problem based on subconscious, emotional needs not rational analysis. While this is true in virtually all consumer choices, it is especially true in professional services, where clients generally feel vulnerable.

Clients will say they want these qualities from a professional service firm–in this order.

1. Expertise
2. Trust
3. Communication
4. Fair price

That's what they'll tell you, at least. But hidden in their subconscious they are really looking for solutions to and comfort from a variety of emotional needs, fears and frustrations. If the professional only focuses on the “rational” list and fails to meet the client’s emotional needs, the relationship can sour or even be lost.

So, what should professionals do?

1. Be observant and sensitive to the first signs of relationship issues
2. Look at what the clients see from their perspective (even the "little" things). How does the receptionist sound when a client calls in? Harried, or friendly? Every little interaction with your firm shapes client relations.
3. Emphasize client relationships in your business activities. Create a culture of client service. Lead by example; show your staff how it’s done. Develop systems that are client-friendly. And above all, train your staff to be sure everybody knows that clients are number one, period.
4. Be sensitive to how you are doing. Actively solicit feedback from your clients on an ongoing basis. Measure what you can.
5. Keep the pace and content grounded at client levels. Once you've determined what your client needs to do, communicate it clearly, in terms your client will understand. Too many professionals operate exclusively in their "own world" while clients struggle to keep up. Work hard to keep vocabulary and pace at a level that's comfortable for your client.

What should professionals NOT do?

Unfortunately, it's not enough merely to do those things well. You also need to avoid doing two very wrong things.

1. Don’t be blinded by your own expertise, your ego or your point of view. Professionals are ultimately advisors. We can tell our clients what we believe is the best course of action, but we cannot make them follow our advice. Make your best case as positively as you can, but don’t get married to it. Ultimately a strong client relationship depends much less on your expertise than you might think, and far more on your ability to communicate and collaborate with clients.
2. Don’t make problems worse. If a client is unhappy, avoid doing the things that will make your client feel worse. Don’t ignore the problem or hope it will go away. Don't blame the client; start with empathy ("If I were in your shoes, I'd feel exactly the same way") and move rapidly into sympathetic, active-listening troubleshooting mode. Promptly take your share of responsibility for the problem--and for solving it.

Turn problems into opportunities

Problems, kept in perspective, are actually a great opportunity. They give us an opportunity to show our client what we're made of.

Customer service studies indicate that client satisfaction actually increases when a problem is successfully resolved. So, problems provide the opportunity to create the strongest type of relationship: One that has been tested by adversity. Clients usually don’t fully trust you until they know how you'll respond when the chips are down.

Balancing client relations with business needs

Your business serves your clients, yes, but it must also serve you. Successful professionals need to fulfill client needs in a way that both meets the clients’ expectations and, at the same time, fulfills the professional’s business requirement. The client relationship is where these needs meet and find a balance.

Consider the potential conflicts inherent in the following scenarios:

1. Necessary delegation of account management after the sale is closed (Risk: Alienating or losing the focus of client loyalty).
2. Exercising your advisory prerogative and citing your expertise (Risk: Overwhelming the client, or turning them off).
3. Expanding your practice (Risk: Appearing or becoming aloof and distant, to the point of seeming uninterested or unresponsive to your clients).

Ultimately, the best marketing focuses on what is important to your clients. Your clients want to trust you. They want you to care about them and their needs. If you take care of each client as though they were your only client, you'll have taken the first step to building a strong and growing firm.

Until next time - love your clients!

Ken Hugins, Treasurer of the City of Escondido, founder and President of Escondido-based Hugins Associates, is a CPA who works with entrepreneurs, small business owners, and professionals to find better ways of running their business. E-mail questions or comments to ken@huginsassociates.com.