In today’s episode of ‘From the eLearning Trenches,’ we asked one of our learners, a client service administrator in public practice, to consider what types of client segmentation their firm undertakes and whether this results in new service opportunities?
Learner Reflection
At this stage, the firm does undertake some client segmentation strategies but to my knowledge not extensive. Some of the segmentation strategies the firms use are:
- Marketing and Communication sector in our CRM platform XPM. In the client database we have fields in XPM that we update such as client classification, industry, events etc that we use. We can then use this information for targeting for special events, such as marketing, newsletters, client events etc.
- We also use PowerBI within Teams to identify opportunities which can also be used for segmentation and developing opportunities. However, this does not integrate into XPM.
Whilst the Power BI approach is formal (has checklists and a database to enter this information into), it relies heavily on the Director/Manager to complete this checklist and pass onto the PA to enter into the Opportunities database. A report is then generated weekly, and Director/Manager advises change in the status on has progressed from Prospect -> Initial Discussion -> Proposal -> Won.
Strengths in this current process, is that the information is all in one database and this can be easily reported on and accessed by leadership team and Personal Assistants.
Weaknesses are:
- relies heavily on communication between Director/Manager to PA
- Manager/Director has to check this report each week and communicate any changes/updates
- Is a totally separate database that does not integrate with a main CRM platform.
To improve this system, need a platform that integrates within the main CRM platform that can be accessed by all internal staff involved. It would be great if once a lead is won it can easily be converted into ie a new client record or new job record.
I know from discussions with leadership team, that we are currently looking at an additional CRM program such as Salesforce I believe that will integrate with XPM to assist in developing opportunities and generating internal leads.
Feedback from our experts
Generally, accounting firms are not sophisticated when it comes to client segmentation. Basic transactional data is available, however it is generally not used to identify clear opportunities for additional services. It is not generally used to provide targeted messages to clients based on their specific needs and interests.
A dedicated CRM platform allows professional service firms to ‘slice and dice’ clients based on demographic, psychographic and strategic needs and interests. It also provides the opportunity for clear identification and review of opportunities in real time.
Looking at the learner response, it’s clear that this firm is relatively sophisticated in relation to client segmentation and business development, however there is still opportunity for improvement. Tools such as PowerBI and Sales Force can be very effective in guiding business development, but there needs to be a real focus on client needs and business development at all levels of the firm.
The best place to start is by identifying service opportunities with existing clients and then targeting specific messages and communication to these clients. It’s much more effective to send out short, sharp messages on areas of interest to clients than general monthly newsletter that tries to cover all bases.
Consider the following 3 actions that your firm can take to improve client segmentation and identify new service opportunities:
- Identify Client Interests and Needs Through Discovery Meetings
Implement structured discovery meetings as a regular practice. These meetings should be designed to gather in-depth information about clients’ current financial situations, goals, challenges, and future aspirations.
Implementation Steps:
- Develop a standard list of questions that cover a broad range of topics, including business operations, future growth plans, personal financial goals, risk management, and compliance needs.
- Train client-facing staff on effective interviewing techniques to ensure that they can extract meaningful insights from these discussions.
- Analyze the information collected to tailor services that address the specific needs and preferences of each client segment.
- Set Up a Software Platform That Records Status of Opportunities
Invest in or develop a Customer Relationship Management (CRM) software platform specifically tailored for accounting services. This platform should enable the firm to track and manage client information and service opportunities efficiently.
Implementation Steps:
- Choose a software platform that integrates easily with existing systems and offers customization to fit the specific needs of accounting practices, such as integration with financial management tools.
- Ensure the platform has capabilities for tracking interactions, notes, and updates on client needs and opportunities.
- Regularly train staff on how to use the software to ensure consistent data entry and to exploit its full potential in managing client relationships and identifying service opportunities.
- Identify the Next Steps for These Opportunities (What, Who, When)
Establish a clear and systematic process for action planning based on the information and opportunities identified through discovery meetings and recorded in the CRM.
- Implementation Steps:
- Create templates for action plans that specify what needs to be done, who is responsible, and when it should be completed. These should be tailored to different types of services and client segments.
- Utilize the CRM to assign tasks, set deadlines, and send reminders to ensure follow-ups.
- Regularly review these action plans in team meetings to monitor progress, adjust strategies as needed, and ensure accountability.
Key takeaway: Accounting firms can significantly improve client segmentation and identify new service opportunities by adopting a structured approach with software support.
This assessment task and response is taken from the Client Concierge eLearning course (assessment task 6.2). Click here to explore this course
Also, take a look at the Responsible Workflow Management eLearning course.
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