august2022 - 29

FEATURE
Dillon CPAs, is a prime example of a
leader who has figured this out. He's
someone who is leaning into Smart
Client Management to maximize
client data to grow and thrive. And,
by the way, he's also someone who
is willing to share his secret sauce.
The bottom line is that client
data is at the center of everything.
It's your ticket to long-term success-if
you're willing to put in the
time to work it. And if you are, this
is a great place to begin...a starter
guide on how to dig deeper into data
and strike gold!
IDENTIFY YOUR IDEAL
CLIENT PROFILE (ICP)
Before you can go after clients who
are the best fit for your firm, you
first have to know who you're looking
for. Who do you want to serve?
Who are you good at serving (think
vertical markets)? What is your
ideal client profile?
For starters, it's important
to
understand
that dollars
don't matter.
Okay, well, maybe this is a bit
of an overstatement, but the sentiment
is dead on. The point here is
that looking solely at the revenue
a client brings in doesn't always
make them an ideal match for your
firm. You must also factor in key
non-financial data.
For example: Do you have families
of businesses you enjoy serving?
Are you skilled at serving specific
verticals? Do you actually like the
client? Does the client respect your
team's time and efforts?
" Just because, historically, a client
has spent a lot of money with
you, doesn't mean they're a good
fit for where you want to take your
business, " explained Dillon. " At one
point, we decided that we no longer
wanted to offer audit and attest services.
While they represented some
large engagements, it just wasn't
the type of work we wanted to do. "
Relationships are also core to
Dillon's business model, which
means one-time engagements don't
make the ideal-client-profile cut.
" We're in the business of building
relationships, not just processing
transactions. We want clients
to have multiple touch points with
staff throughout the year and get
really close to them. This is one
of the things our staff love about
their jobs. "
Looking at the non-financial
side of what makes an ideal client
is a big part of the puzzle. For
long-term success, you have to
enjoy the clients you serve and
have the skills to deliver services
efficiently, effectively and in a
standardized manner.
REVIEW THE REVENUE
While this feels like a backslide on
advice, it's really not. (Bear with me.)
While not the sole factor in
identifying your ICP, revenue is
still an important factor in the datamining
process. Smart management
of client data includes looking
at the financial side as well. This
provides insight into client longevity
and adaptability to a fixed-fee,
recurring-revenue model.
For Dillon CPAs,
reviewing
revenue has been central to the
firm's thrive factor. And, according
to Marcus Dillon, it's easy to do.
" We had this data readily
available because we bill out of
QuickBooks, " said Dillon. " It made
it easy to look at the lifetime value
of the client, how long they've spent
money with us and what their average
price point is. This really helps
to determine if they are a good
fit for us. "
A clear view into client revenue
aids in understanding which clients
to focus on in terms of transitioning
them to the recurring revenue
model-and/or those where there's
an opportunity to upsell additional
value-added services.
BRING YOUR STAFF INTO
THE CONVO
Dillon was quick to mention that
staff input is another critical element
of the process. Because staff
are on the front line-working
with clients every day-they have
valuable information to share. So be
sure to mine that data as well.
Look to staff to answer such
questions as: What clients are the
easiest to work with? Do they have
needs beyond existing services provided?
Do they advance your firm's
vision and support your business
model (e.g., recurring revenue vs.
one-time engagements)? Are they
in an industry that aligns with your
firm's expertise?
" We like to bring our team
into this process because they
are so close to our clients, " Dillon
explained. " At the partner level, I
have to be dedicated to consistently
reviewing data and refining our
client base, and that means I need
input from my team. I'll give them a
list and ask which clients are worth
fighting to keep and improve as a
client, if there are ideal clients I've
overlooked completely, or if there
are clients that need to go. "
While aggregating intelligence
on clients is key, it's also an exercise
in getting buy-in from staff.
When employees are part of the
data-mining process, it fosters
a deeper understanding of the
firm's bigger vision and goals. It
also provides direct visibility into
partner actions-like offloading
non-ideal clients that don't support
workload balance and a sustainable
business model.
" Last year we got rid of about
$80,000 of revenue by exiting several
non-ideal clients, " Dillon said.
" This gave our team a lot of motivation
because we [the partners]
followed through...because we put
our money where our mouth is...in
creating a better work environment
and opening up capacity for staff
to focus on clients we actually
like serving. "
GETTING TO THE GOLD
Data is everything if used properly.
Regular, dedicated review and
management of client data provides
full visibility into all vital areas of
running a successful and highly
profitable firm, including:
* Identifying ideal clients (as well as
those who need to go).
* Balancing staff workload and
opening the door to preferred,
relationship-based engagements
(by reducing the number of nonideal
clients).
* Creating a positive work culture and
happier staff (a balanced, focused
workload will do that).
* Fostering buy-in from staff by
making them part of the ongoing
data-mining process.
* Uncovering new opportunities for
recurring revenue.
* Cultivating client relationships by
proactively offering much-needed
services (before they have to ask)
and a year-round connect ion
to your team.
* And the list goes on...
There is power in your data.
And smart management of it can
lead to stellar results. Discover
the goldmine, right there inside
your business, to build the firm of
your dreams. ■
Kristy Short, Ed.D, has been serving the
accounting profession for more than 25
years-bringing a deep knowledge of
branding, marketing communications,
and content
strategy and development
to the table. She's worked
with hundreds of partners
and staff to help them
advance their firms for
the modern era. Kristy's been named one
of CPA Practice Advisor's " Most Powerful
Women in Accounting " three times; has
assisted noted thought leader, Darren
Root, create multiple books; and published
hundreds of education-based, accountingfocused
articles over her career.
AUGUST 2022 ■ www.CPAPracticeAdvisor.com
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august2022

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