How to Grow Without Adding Clients

Source: RainToday

Following are excerpts from an article by Randy Shattuck, reproduced with permission.

As professional services firms struggle with the impact of this deep recession, it seems that their leaders have developed almost a singular focus -- acquire new clients. I'm concerned that many firm leaders are substituting "client acquisition" for "revenue generation." More often than not, existing clients are the best source of quick new revenue. There is wisdom in the proverb that reads: "It's easier to sell something new to an existing client than it is to sell an existing service to a new client."

If generating new revenue streams is really the main goal and retaining existing clients is a business driver, can you accomplish both goals with one strategy? I think you can. Start by sitting down with your top five to 10 clients and have an exploratory meeting. Try to identify common themes, such as challenges businesses are trying to address or opportunities they are trying to exploit. Ask yourself how your firm is positioned to address the challenges and opportunities.

Next, get some market feedback from friendly existing clients about potential new services. Ask them if the new service interests them, if they would buy it, the value they think the service would provide, and how much they would expect to pay.

If you decide to offer the new service, use the information gathered in the discovery phase to package the presentation. You can say things like "our clients have asked us to help them with . . ." or "we know you're looking for . . ." The more the offering appears to arise from client-defined objectives, the greater the likelihood that clients will buy it.

For the complete article, click here.

Randy Shattuck is a senior marketing executive and founder of The Shattuck Group, a full-service marketing firm that specializes in growing professional services organizations. You can reach him at [email protected].

From RainToday, www.raintoday.com, March 31, 2010, "Do You Really Need New Clients?"