Ray Henderson says it’s never been more important.
Given the ongoing uncertainty in world markets it is essential that all advisers develop and implement an effective client communication programme for their business. Or is it?
While intuitively we all know it makes good business sense (on a number of different levels) to regularly “touch” our best clients, it’s worth asking the question, does good client communication have an impact on the bottom line as well as improving client satisfaction?
As the following table from our Future Ready IV research paper clearly shows, there is a direct correlation between “A-class” client contact and practice profitability. On average, those practices that contact their best clients more than 10 times per year (and in this context, contact can be written, electronic, telephone, group functions or face-to-face interviews) generate 287 per cent more profit than those who only touch their best clients fewer than five times a year.
Interestingly, this increase is up from 79 per cent prior to the GFC, which is pretty compelling evidence that frequent, relevant communication not only leads to happier clients but also has an impact on the bottom line.
Now is a good time to review the effectiveness of your client communication or programmes – there is indeed a very real business benefit in getting this right.
You may wish to consider the following tips from Business Health as you look at just how and when you communicate with your clients.
An effective client communication programme should lead to happier clients, increased confidence that you are connecting with clients on a consistent basis and, based on our findings, a healthier bottom line!
Effective communication with clients has probably never been more important. Make a decision to take a step forward in this critical area today.
Ray Henderson is a partner and director of Business Health – www.businesshealth.com
