Does Your Firm Have Too Many Clients?

Source: Outlook

In this interview, Ron Baker, of the VeraSage Institute, maintains that a CPA's job is to “exceed your customers' expectations, something that is impossible to do if you don't know what your customers expect.” He also suggests that the best way to exceed expectations is to provide excellent service. Quality work is expected, and competing on price isn't a good strategy.

Baker says that customer complaints provide valuable feedback, so you should “offer . . . an incentive to complain,” such as a money-back guarantee. Most firms would reduce their price for an unhappy customer anyway, Baker reasons, but an explicit guarantee “gets you marketing clout and the ability to charge a premium.”

Baker also recommends getting rid of customers who aren't a good fit. “Bad customers drive out good customers,” Baker explains. “Too many low-value customers suck up your time and are emotionally draining.” By operating your firm at optimal capacity, rather than at maximum capacity, you'll have fewer customers but you'll be more profitable. What's more, you'll have happier customers and happier employees.

For the complete article, read “You are your customer list.”

From Outlook, A publication of the Certified General Accountants Association of British Columbia, Summer 2012, http://www.cga-bc.org.