Are you offering an advisory-based service in your practice?
How can you, with your clients:
increase the retention rate
have a higher lifetime value
become a deeper, more meaningful, and relevant relationship
spend less time having to close more engagements
The answer: offer 4 or more services to your clients, with one of them being an advisory-based service. Studies have shown that 4 or more services with a client create an 80% retention rate (Boston Consulting Group). When one of those services is advisory, you will have even greater results. Results such as higher margins since advisory services are not transactional but consultative and value-added.
Advisory services encourage different conversations and an opportunity to get to know your client in a way you may not know them or their business. When you connect this way, trust grows, and you find ways to help your clients proactively and not reactively. Studies also show that clients are more likely to leave for a competitor when they weren’t getting proactive advice. Being reactive is perceived to be more of a sub-standard level of service, not a gold standard of service like proactive services are.
Are you a one-offering firm? A two-offering firm? I suspect if you think about it, you may not realize you already offer many different services. Because they are lumped together and not separated, consider what could be an advisory service offering that is complementary to your business and targeted to your ideal client.
Don’t know where to start? Ask your top clients. What do they think, such as: what do they wish you’d offer, what are their biggest challenges, where can you help them see ahead - around the corner, prepare and manage risk? Then offer that proactive service that your client would highly value.
And, if you already have 4 services with one advisory - are your clients aware? If not, time to make them aware. If so, what penetration rate do you have? If low, time to find out why. Multiple services to a client, especially advisory, is a clear path to 80%+ retention and expanding the lifetime value of your client.
