Developing great client relationships

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Growing equity, realizing value

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Sell more of what you doto people you already know

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When we look at a consulting firm we use our Equity Growth Wheel

Market Proposition

IntellectualProperty

Quality ofFee Income

Sales &MarketingProcess

ConsultantLoyalty

ClientRelationships

Sales &Profit Growth

ManagementQuality

EquityGrowthWheel


Most sales effort and revenue should be prioritised on current clients and current services

20%

60%20%

Proportion of effort by service and client

Current

Current

New

New

Serv

ices

Clients


The basis for developing good client relationships is a simple account management process

• All your existing accounts need to be examined by the client account management process• Once you have decided which clients to focus upon, account plans need to be created and

then managed

1. Classify clients 2. Create account plans

3. Manage account plans

Update Sales Pipeline

Contribute to Budget Process


There are four account types and each one requires a different management approach

Account Type

Typical Characteristics Typical Revenue per Account

Account Management Approach

Key High value, possibly annuity account, providing a significant contribution to the revenue stream, now and in the foreseeable future

>10% of total Focus

Emerging Medium value account with the potential to develop into a strong revenue stream

1-10% of total Develop

Transaction Relatively low value account which provides sporadic opportunities, but little future growth potential

1-10% of total Maintain

Exit Low value, possibly loss-making, with no growth potential

<<1% of total Monitor


It is important to classify clients so that the appropriate level of account management can be applied

1. Map accounts onto the Client Growth Matrix using profitability data from last 12 months2. Complete Pareto analysis based on revenue over last 12 months

Hi

Lo

Curre

nt P

rofit

abilit

y

Growth Potential HiLo

1 2

3

10

6

913

87

5 4

Client Growth Matrix Client Revenue Pareto

Key Emerging/Transaction Poss. Exit

14

11

12

Key Emerging Transaction Exit


The key account team meets to create the account plan

1. Summarise client business

2. Summarise relationship with

client3. Define client

needs4. Create

stakeholder plan

5. Complete SWOT analysis

6. Identify opportunities for additional work

7. Articulate your account

objective8. Create the

plan


Stakeholder Name

Stakeholder Objectives

Management Strategy

Messages Needed

Action Responsible

Make sure the account plans are simple to follow and administer

Opportunity Customer Potential Value

Action Responsible Complete by date

Sales Opportunities Plan

Stakeholder Plan


For your Client Relationship homework try these Start, Stop, Continue strategies

Classify your accounts and appoint managers for the key onesStart

Stop

Continue Updating your sales pipeline with forecasts from your client accounts

Stop spending all your time in the key accounts on delivery only: make time for account management.Stop spending any senior management time on the exit accounts


Please make use of our free thought leadership material

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Growing equity, realizing value

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Developing great client relationships

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