Fourth Article in the Series:
Efficiency and Productivity
Continuing on with the evaluation of your non-ideal clients, we come to the No-Fit Client.
The No-Fit Client does not match up with any of your Ideal Client parameters. Perhaps you inherited the client or developed the relationship prior to establishing your Ideal Client profile.
Use the following steps to evaluate this client:
- Is the client profitable for you? Are their service needs in line with the fee that you charge? If it costs you money to serve the client, then you need to raise your fees or find a way to move the client along to another firm or advisor.
- Does the client provide referrals to Ideal Clients? The client may be a Center of Influence to Ideal Clients even though they are not that Ideal Client. You will obviously want to maintain and nurture these relationships.
- Was the client referred by an Ideal Client? If the relationship is profitable, in terms of revenue and service needs, then certainly keep them on the list. You may find that some client referrals are not profitable, yet are necessary to maintain, such as children’s or small accounts for friends or family. Make sure the service you are providing to these accounts is appropriate to the relationship. You will have to be judge on just how much to “invest” in these types of clients.
No-Fit Clients are acceptable on the client roster as long as they do not interfere with your ability to attract Ideal Clients and for your staff to serve those Ideal Clients.