Ask any consultant about the importance of client relationships to the success of a practice and you’ll hear a predictable response: they are essential. Many firms take a systematic approach to relationship building and have embraced account-based marketing for selected clients.
Account-based marketing (ABM), which is loosely defined as allocating time, people, and money to specified clients for a more consistent stream of business from them, works for firms that know what they’re doing.
Consultants at Altera Group looked closely at the use of ABM across a range of service firms and reported that:
- 97 percent said ABM had either a somewhat higher or much higher ROI than other marketing initiatives.
- 84 percent said ABM provided significant benefits in retaining and expanding existing client relationships.
In spite of that potential, it’s always proven difficult for firm executives to make the transition from a purely opportunistic sales strategy to an account-based management process. Most consultants are comfortable teeing up sales leads and projects from whatever sources they can find. But a true account-based marketing program demands discipline, patience, and commitment, and isn’t right for everyone.
So, before you jump into an ABM strategy, consider these three points:
1. The best account managers are specialists in their area of expertise. The account manager must bring something of value to the client relationship. Otherwise, the client will view that individual only as a salesperson. In an ABM relationship, that’s the kiss of death.
2. Firm leaders need patience. Some firms don’t see a real return on their investment in relationships for months or even years. Every account manager needs a clear set of goals and accountability guidelines for the relationship. And those goals may be very different from others in the practice. Also, in spite of what you may think, a consultant doesn’t necessarily have all of the skills to manage a strategic account just by virtue of having managed client projects. Account managers need new tools, education, and strategies to succeed.
3. Choose strategic accounts carefully. Before you commit to an ABM strategy for a specific client, be sure you have a decent shot at success. Some clients don’t want strategic relationships with anyone. Others may seem like candidates for ABM, but may not be. You’ll want to assess the client’s interest in establishing deeper relationships with your firm, the likely demand for services over time, and the extent of the investment you’ll make to create a mutually beneficial relationship.
Under the right circumstances, firms can be very successful targeting specific clients. What’s less certain is whether firm leaders have the patience to let relationships build to a profitable point. Often, it takes longer and is harder than they think.
About Michael W. McLaughlin
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