Is This Your Situation? Need to Replace Bad or Unprofitable Client Engagements
When you sit down to evaluate your firm’s goals, you may be considering planned turnover. Ridding your firm of unsuitable clients can free up resources and position you for greater success with your core clients.
Make Room for Quality Growth
Take some time to consider which clients should be released. There are a number of attributes that could define an unprofitable client:
- Not aligned with firm values
- Disrespectful to staff
- Causes conflict
- Delinquent or consistently late payments
- Consumes excessive time that regularly needs to be written off
- Drains firm resources
It is a positive step forward to disengage clients that are not profitable, but your firm may lose roughly 5% annually from planned turnover. Just to break even and maintain annual revenue, your firm needs to replace planned turnover.
Build and Implement a Plan
Take a step beyond maintenance to achieve growth. To reach your goals, consider the following:
- How many new engagements will your firm need to acquire from marketing activities?
- What type of clients does your firm want to attract?
- How can you develop a consistent stream of new business?
The first step in building a plan is to centralize all the contact information from your firm’s clients, prospects and referral sources into one principal marketing database. It has been said that, “Even a blind squirrel finds a nut once in a while,” but with a centralized, trackable database in place, the squirrels gain sight and the nuts develop tracking beacons.
Make It Happen
Make a Strategic Investment. It’s no secret that many accountants aren’t great marketers. This means you may need to make an investment in ongoing marketing strategies. Once your marketing plan is in place, hold your staff accountable to weekly, monthly and quarterly goals.
Digital marketing tools can help you easily replace bad clients and keep your pipeline full. Learn More at IndustryNewsletters.com.