Despite the fact it costs more to get a new client than to keep an existing one -- five times as more, for some -- many still focus primarily on adding new clients instead of growing existing accounts.
A better, more complementary strategy would be to help existing clients expand their scope of services. According to a Bain & Company report “a 5% increase in customer retention produces more than a 25% increase in profit.”
When you have engaged, long-term clients, these factors develop:
- You intimately know their businesses and priorities.
- You create personal, trusted connections with business owners and stakeholders.
- You identify potential areas where they can use your help and advice.
- You end up with happier clients, who in turn will take advantage of additional services that align with their needs.
- These pleased clients refer you to their colleagues.
- You get new business and new clients.
It’s an organic cycle with increasing returns. Retaining clients results from work on many fronts, and an important one is technology. When applied with purpose, it supports retention both for firm staff and clients.
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About Pete Potsos
Pete Potsos, CPA is Strategic Account Manager & Client Accounting Services Strategic Advisor at Bill.com. He has also held Account Manager roles at Sage, CPA.com and Thomson Tax and Accounting.