Deliberate, focused client relationship management underpinned by an excellent level of customer service. This is what clients want from professional services firms in 2023, according to new research by Hinge Marketing.
These themes emerge from a study into the perspectives of more than 900 buyers and 500 sellers considering client loyalty in professional services. The Hinge research asked for detail on how buyers choose their providers, what encourages clients to return to the same provider, and what sorts of things represent major dealbreakers that would send a buyer to a new firm or back out to market.
The top concerns from a buyers’ perspective were:
- Poor customer service – this is a growing concern for buyers, reportedly up 142 per cent since 2020
- Inexperienced staff – the reported concerns have more than doubled on this issue, up 249 per cent since 2020
The data highlights how securing client loyalty is not an entirely fickle business. Responding to feedback and making improvements in the above identified areas can ensure clients continue engaging your services into 2023 and beyond.
In light of the above findings, let’s ask ourselves …
What is within the control of the professional services firm?
Of course, the macro environment is not something we can control. We are all abundantly aware that staff are increasingly hard to retain and attract in the post-pandemic world. Employee engagement plus the scarcity and high price on talent will be major factors for point 2.
However, firms are increasingly finding new, creative ways to retain and attract staff. What worked in 2020 is being redefined. How firms redefine their talent strategies is certainly within control.
Point 1 is more easily controlled. Every year Beaton Benchmarks data confirms that some professional services firms, and in turn their clients, are benefiting from deliberate strategies to focus on excellent client service and client experience. Excellence in this area, as Hinge’s data soberly reinforces, is critical to client loyalty.
We know from common sense and Beaton’s research that excellence provides firms with tangible advantages including repeat business, greater cross-sell opportunities, and the ability to charge more, also known as premium pricing. It also affords us longevity of client relationships; so-called “sticky clients”. These four advantages add up to superior profitability for firms that earn them.
Collecting and responding to feedback, then making improvements in identified areas of need can help ensure clients stay loyal to your firm.
So, what ensures client loyalty for the long term?
Hinge’s research finds the top two factors buyers evaluate firms on are:
- Knowledge of industry/subject matter expertise, which is up 28 per cent since 2020
- Existing relationship, up 111 per cent since 2020
Hinge rightly contends this should compel firms to reflect on the existing methods of business development and relationship management. I worry at this point because I still see and hear “we are very busy” as a reason for firms to not invest time in finding ways to improve service and recognise or meet changing client needs.
As sure as night follows day, we know that workload in professional services firms can be cyclical. Peaks and troughs depending on a variety of external factors. Savvy firms and moreover savvy client-facing practitioners within those firms recognise this and ride those waves with a consistent mindset and focus on client loyalty and relationships.
Excellence provides firms with tangible advantages including repeat business, greater cross-sell opportunities, and the ability to charge more, also known as premium pricing. It also affords us longevity of client relationships; so-called “sticky clients”.
Firms and individuals in those firms with the most loyal clients do a few things very well:
- They consistently stay in touch in ways that add value to the client. This means not only getting in touch when there is work on the horizon or when things are quiet – it means a constant pipeline of two-way communication and the service provider being available to the client.
- Consistently research, stay on top of and consider what is going on in the client’s world. This enables providers to authentically utilise and demonstrate relevant insight and expertise.
- Consistently consider ways to assist the client in uncovering opportunities and overcoming challenges.
Perhaps all that Hinge’s research does is put a sobering lens over what we already know. Investing in client relationship management and improving the client experience is at the heart of all client loyalty.
Bringing it back to my earlier question though; when we look at the challenges that this research poses, consider what is within the control of the professional services firm?
Answer: almost everything.
To find out more about Beaton’s client feedback tools and how they can benefit your organisation please visit our Client feedback tools page or contact us to discuss your options with a Beaton partner.