With clients having access to more options and a stronger voice in the marketplace than ever before, experience, over price and product, has become a key brand differentiator. Firms that want to outpace the competition and avoid commoditization need a robust Client Experience (CX) Strategy.
The Impact of Change
Change is an inevitable aspect of business, often presenting itself as an unwelcome guest. Frequently, it is the cause or the result of some business pain. Our clients frequently discuss these challenges with us—ranging from increased competition for crucial projects or key staff to declines in win rates and profitability and even governmental intervention through new regulations.
In professional services, these impacts can be detrimental to your firm’s growth, perception in the market, and overall survival. Thus, integrating a proactive CX strategy is essential for adapting to and thriving amidst these changes.
Three Benefits of a CX Strategy
1. Countering Downward Pressures of Competition
Is your market becoming more competitive? If so, what impact is this having? It's widely recognized that increased competition puts downward pressure on client retention and win rates. With technological advancements, clients now have unprecedented access to information, making geolocation less important. Local and regional firms face increasing competition from national firms—and vice versa. Downward pressure on win rates can lead to reduced profitability, increased stress for your team, and higher per-acquisition costs for new clients, initiating a challenging downward spiral.
Implementing a Customer Experience (CX) strategy can counter these pressures by enhancing your firm's understanding of each client’s unique needs, including those of key clients. While customizing project delivery for each client isn’t practical, your CX strategy can identify opportunities within your existing processes to tailor approaches based on individual preferences, motivations, and requirements, maintaining efficiency without compromising profitability.
Consider the innovative approach one of our clients took by redesigning their invoicing process to be more 'delightful.' Though it may seem unconventional, the feedback from the past decade highlights invoicing as a common friction point. By making subtle adjustments, this client significantly improved their customers’ perceptions, not just of the billing process but of the firm's overall attentiveness and commitment to positive change.
2. Avoiding Potential Client Churn from Staff Turnover
Is your business experiencing high turnover? Does your firm boast a dedicated sales or business development team? In many professional services firms, these crucial roles are often filled by "seller-doers"—individuals who not only secure the business but also deliver the services. This dual responsibility varies across professions, from the competitive "eat what you kill" approach in law to more collaborative environments in architecture and engineering.
Typically, highly technical staff who prefer focusing on their work are introverts, leaving extroverts, who are somewhat adept with interpersonal interactions, to assume business development roles. This frequently leads to a scenario where client loyalty is tied more to individual staff members than to the firm itself. Consequently, when these client-facing professionals depart, they might take a significant portion, if not all, of their business with them. Does this scenario sound familiar?
Turnover is inevitable, but having a well-designed CX Strategy in place helps pivot client loyalty from individual contributors to the firm’s brand, safeguarding against the potential losses associated with staff turnover.
3. Improving EX to Help Find and Retain Top Talent
Is it challenging to find or keep talented employees? Research consistently shows that turnover usually isn't about salary; rather, it's more often linked to employees not feeling valued, finding their work unfulfilling, or not seeing how their roles contribute to the company's broader strategy. Do you have an incentive program that rewards employees for referring potential hires to your firm? How effective is it? If your team members frequently handle complaints from clients, they're not only more likely to leave but also less inclined to recommend your firm to others, regardless of incentives.
Employee Experience (EX) and Client Experience (CX) are closely intertwined. When your firm excels in delivering a unique client experience, not only can you charge more for your services, boosting profitability, but a positive workplace environment also emerges. Satisfied clients contribute to a positive work atmosphere, making your employees more likely to endorse your firm to top talent your firm wants and needs.
In the knowledge economy, services are often commoditized, and expertise is taken for granted. For clients who may not have the expertise themselves, it's challenging to discern who truly possesses the deepest knowledge. So, what sets a firm apart? The answers could include convenience, cost-effectiveness, ease of interaction (which is part of CX), and a genuine understanding of the client's unique needs (which is 100% CX). Client Experience is the key to distinguishing your firm and making you the one that clients want to align themselves with.
CX Strategy Tip: Client Empathy Mapping
Client Empathy Mapping is a powerful tool to help your team better understand the questions, feelings, thoughts, and needs clients may have while interacting with or considering your firm. Here is a list of eight situations where Client Empathy Mapping makes sense for your team:
- Initiating a Client Experience Program – Lay the groundwork for a client-centric culture.
- Chasing a Significant Opportunity – Tailor your approach to the specific needs and expectations of a major project.
- Breaking into a New Market – Understand the unique demands and client expectations in unfamiliar territories.
- Expanding Client Engagement – Enhance relationships and increase business with key clients.
- Client Onboarding – Ensure a smooth and welcoming introduction for new clients.
- Recruiting Client-Focused Staff or Leaders – Align new hires with the client-first ethos of your organization.
- Responding to Rising Competition – Strategize effectively to maintain your competitive edge.
- Addressing Client Turnover – Identify and address the underlying causes of client attrition.
Utilizing Client Empathy Mapping in these situations will help you foster stronger connections and enhance satisfaction, positioning your firm as a preferred partner. Learn more about creating a client Empathy Map as part of your CX Strategy.
