One of my favorite quotes is from The Ultimate Question by Fred Reichheld:
“But the business goal here isn’t merely to delight customers; it’s to turn them into promoters – customers who buy more and who actively refer friends and colleagues.”
The focus of client relationship management is generally from the “top down”. What are the services that we deliver to our clients? How do we service our best clients? What do our clients want and need? You know you are delivering from the “top down” when you use the phrase “our clients” when discussing client relationship management.
“Top down” client relationship management may satisfy clients but seldom delights them. At best, it produces what Reichheld calls “passives” or “detractors”. “Passives” will change advisors when they are presented with what they believe is a better value proposition and “detractors” are actively seeking another advisor, while spreading negative messages about that advisor.
The opposite of “Top Down” is, of course, “Bottom Up”. “Bottom Up” client relationship management involves starting with a single relationship, engaging that client in an in-depth discovery process to identify needs, wants and priorities and then developing a customized program to deal with the problems that were identified, on a timeframe that will systematically deal with the issues without overwhelming the client.
By taking a “Bottom Up” approach, you convert reactive into proactive, which allows you to deliver more in less time. More importantly, though, you are able to custom design a client relationship management program to delight that client, thereby creating a “promoter”.
The key to “Bottom Up” relationship management is discovery. Discovery helps engage your client in his own growth program, uncover opportunities, set priorities and take action. From the advisor perspective, it enhances her position of trusted advisor, uncovers opportunities for additional revenue and lays the foundation for a long and profitable relationship.
Why do clients walk away? Because the “top down” approach to relationship management develops “passives” and “detractors”, who are simply not satisfied. Promoters never leave.
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