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• W56082882 abstract "For many years, CPA firms didn't worry much about retaining existing clients. It seemed there were always enough new clients coming into the firm and competition for new or existing clients was minimal. Today, however, the environment has changed drastically. The number of competitors has multiplied, clients are more sophisticated and, most important, they consistently demand higher levels of quality service each year. A DEMAND FOR GOOD SERVICE Studies show business-services clients can be up to five times more likely to switch professionals for perceived service quality problems than for price concerns or product quality issues. CPAs should be aware of the snowballing effect of client dissatisfaction. While 26 of every 27 dissatisfied customers will fail to report a service problem because they don't expect anything to be done about it, the average dissatisfied client will tell 10 people, and some will tell as many as 20. However, 90% of dissatisfied clients will give a company a second chance if their complaints are resolved promptly and thoughtfully. Client expectations are progressive. In Marketing Imagination, Theodore Leavitt says client expectations rise to what has been shown to be possible. Leavitt notes that 10 years ago, only the best hotels provided shampoo, mouthwash and other amenities. Now people expect them and hotels are pressured to provide them. Clearly, service demands on CPA firms also rise. Firms that continue to raise their standards for providing client service will thrive. And those that truly learn how to cultivate clients will discover the four major benefits of keeping existing clients satisfied: * Repeat engagements. * Referrals. * Endorsements. * Lower servicing costs than those for new clients. All of these benefits translate into an improved bottom line. Each time someone in a firm-whether a receptionist or the managing partner-comes in contact with a client it is a moment of truth. That contact can be a pleasant, neutral or negative experience for the client that will deeply affect his or her subsequent opinion of the firm. HOW ARE CLIENTS LOST? There are several ways to lose clients, and most of them involve service quality-not poor technical quality. In many preventable cases, the practitioner's attitude is the culprit. Many CPAs unknowingly treat clients as the enemy. This is demonstrated when someone in the firm believes or even tells a client a problem was really the client's fault. In other situations, firm members act as if they are more important than their clients and make clients feel small and insignificant. And, too often, clients find themselves being ignored. Over the past several years, we have spoken to hundreds of CPA firm clients throughout the country. The number one complaint we hear is My accountant just doesn't treat me right. There are many examples of mismanaging clients. Sometimes firm members fail to return a client's call to avoid a confrontation. In some cases, staff people running late tell clients, We would have finished the engagement on time if your people had completed the schedules on time. How does the client feel when told the late engagement was his or her fault? Or when he or she calls with a concern and the call is not returned for a day or two? And these aren't the only ways we lose clients. Sometimes it's easier to put up barriers between firm and client than it is to communicate. We've seen several ways CPAs erect barriers. The six most common and harmful ways will be described below, along with suggestions for safeguarding against client defections. IGNORE CLIENTS The best way for CPA firms to lose clients is by ignoring them or failing to treat them as valued and important. One simple way to start solving this problem is by reminding firm staff and administrative people to acknowledge the client and use his or her name. …" @default.
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• W56082882 modified "2023-09-23" @default.
• W56082882 title "How to Lose Clients without Really Trying: It's Easy to Lose Clients - the Trick Is Knowing Why and What to Do about It" @default.
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