Fifth Article in the Series:
Efficiency and Productivity
In our ongoing analysis of your client list, likely the most challenging conversation will be the one involving the Big Hitter Client. The Big Hitter Client is a great revenue producer. But at times, they can cost you more than the revenue produced. Here’s how:
- If the Big Hitter Client does not utilize most of the services you provide, and in fact, requires more and different services than most of your other clients. Perhaps the revenue will allow you to develop the services and expertise that the client needs, yet if they remain the sole client utilizing those services, it can become an expensive engagement. It is not that the Client is particularly challenging; it is simply that you and the firm are not set up to address his specific needs. You can decide if it is worth the investment to meet the client’s needs (you think you can add similar clients) or you can look for the opportunity to refer.
- Big Hitter Clients that do not fit your Ideal Client profile can cost in another way, particularly when you know who you serve best. A Big Hitter Client that does not engage in your usual process may leave you feeling dissatisfied and uncomfortable with the relationship. While the revenue may appear enticing, you must consider what brings you satisfaction.
- If the Bigger Hitter client revenue is disproportionately larger than your other clients, it will cause significant stress as you wonder how long the revenue stream will last. Good business sense dictates a more equal-weight revenue base and not one overly dependent on one or two Bigger Hitter clients.
Big Hitter Clients can make a great addition to your firm and allow you to make some changes and improvements to attract more of the same type of clients, perhaps changing or upgrading your Ideal Client profile. Evaluate carefully and don’t allow dollar signs to hinder your view of what you want your firm to be.
Referring this type of client to an advisor or firm that is a better fit can serve you in two ways:
- Respect for your professionalism by the Big Hitter Client and subsequent referrals.
- Appreciation and a willingness to return the favor by the firm receiving the referral.
Do you need to build your network to be able to refer appropriately? Then consider some of these upcoming events in October.