The Profitability Chain
I was recently asked to give some advice to the staff of a Midwest firm on how they could be more effective at building a network and marketing their firm.
The first thing I suggested was that instead of looking to tools and strategies for marketing the firm, they should spend some time considering their own culture. I said this because I was thinking about the Harvard Business Review that address the 'profitability chain.'
According to HBR, satisfied employees treat clients especially well. Well-treated, satisfied clients remain longer, spend more (use more services), and consistently refer new clients to the firm. While all that is common sense, HBR actually draws a direct correlation betwen the employees' attitude and the business' profitability.
So - when you are drafting your 2011 marketing plan and looking to nurture your client retention and enhance future growth, think first about your employees' attitude and how well they help you keep your promise to deliver world class client service. Do your employees contribute to clients' satisfaction?