Using the LSRP Score calculation worksheet from our last strategy session, take your client list and sort your clients according to their LSRP scores. Start with 5+5+5+5, then 5+5+5+4, 5+5+5+3. and on down until you are at 1+1+1+1.
Your top clients are your 5+5+5+5, who should be your evangelists, clients who are so delighted with your services they will recommend you to their friends and associates. These are clients who need to be given special attention and service.
Clients in the 3+1+1+1 category and lower are your “dogs,” and need to be handled in a manner which will allow them to become more profitable to the firm.
While clients in the 1+1+1+1 category are not profitable, their newness affords you the opportunity to train them to accept increased fees and margins.
Notice that in neither of the lower categories did I suggest that a client needs to be “culled.” A client represents income and fees. The only questions are, do you receive a fair income for the work, and does the client work with you and your staff productively?
All clients pay for, and deserve, quality service. Your responsibility, not theirs, is to see that they are paying enough to reward you fairly for the time and effort you expend on them. It is not your clients responsibility to see that you earn a fair return.It is not your clients responsibility to see that you earn a fair return. Click To Tweet
In fact, one of the advantages of LSRP Scoring over the typical “client pyramid” analysis, comes from being able to identify clients that you don’t need to spend money on.
In order to get answers to your questions about which clients need improvements in attention and service, and which can remain at status quo, you’re going to need to know how their profile has changed over time. A single score is only a snapshot, what is most important is knowing what the trend is for a client.
Time for a new worksheet. Download the Rainmaker LSRP Trend Calculation Worksheet, and let’s take a look at how it works.
Enter your last three years worth of client LSRP Scores into the LSRP Trends Worksheet and count the net changes in each Score category. You will have a maximum of 8 changes, which can be any combination from eight upward movements and zero downward movements, to zero upward movements and eight downward movements.
What about the clients whose scores are not improving or falling? If your Profitability Score shows a reasonable ROI, leave ’em alone. Whatever level of service you are currently offering seems to be working just fine, and they are satisfied for the time being.
Remember, clients are not clients because they want to buy your services. Clients are clients because they want you to fill a need.Remember, clients are not clients because they want your services. Clients are clients because you fill a need. Click To Tweet
In the case of your more profitable clients, the 5+5+5+5’s, their need is reaching the point where they want to be rewarded for their loyalty. In the case of the less than profitable 3+1+1+1’s and 1+1+1+1’s, they still want their needs filled, and since they have not defected as yet, you still have a chance to not only redeem them, but also yourself.
I’ll talk a bit about the marketing opportunity their change represents in our next session.
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