In the following insight, Paul Roberts, CEO of MyCustomerLens, explores how new methods of AI-driven client listening can fuel business development, but argues that many professional services firms have not yet made the connection.
Sales teams are taught that an equally, or often more, effective way for firms to achieve growth, is by leveraging additional business from existing clients.
This is especially true for an accountancy firm which might be recruited to handle a particular area of a client’s business, such as filing its annual company returns, but after it has proved its worth, might be retained to provide other services, such as payroll or to work on acquisitions and mergers.
Business development (BD) executives who see recruiting new clients as the holy grail, pouring all their resources into strategies and targets aimed at achieving this, can overlook the fact that colleagues in other departments might have data and know-how to make their lives easier.
They might meet members of their client listening team, for example, in the lift or in the canteen, without realising that they can work together more effectively, and productively, by pooling their collective efforts.
That is because client listening has traditionally been seen only as a way to gauge client satisfaction, to identify pain points, and improve service delivery. According to this viewpoint, client experience nurtures existing relationships, while BD seeks to win new clients and never the twain shall meet.
BD executives may recognise the need to leverage existing client relationships, to help achieve growth, but may not realise the value that could be gained by turning to their customer relationship colleagues to win new business.
The results can be frustration on both sides. BD teams crave leads and opportunities, impatient with the seemingly indirect nature of client experience initiatives, while client experience teams struggle to demonstrate the value of their work in a language that resonates with revenue-focused stakeholders.
A better solution for all lies in reframing client listening as a core BD activity, as a way to uncover growth opportunities that are often hidden in plain sight.
Retention v growth clients
Not all clients are created equal and nor should a firm’s approach to client listening be. The first step in leveraging client listening for BD, is by segmenting clients into two primary groups – retention-focused and growth-focused.
Retention-focused clients are those where the primary objective is maintaining a strong, stable relationship. These clients might be comfortable with the current scope of services, and the firm’s listening efforts should be aimed at ensuring satisfaction and identifying potential risks or areas for improvement. While there might be opportunities for incremental growth, the emphasis here is on solidifying existing business.
Growth-focused clients, on the other hand, represent a significant potential for expanding the relationship. These clients might be experiencing internal shifts, exploring new markets, or facing industry challenges that create a demand for additional services. The firm’s client listening strategy for this group should be more forward-looking, focused on unearthing new opportunities and positioning the firm as the ideal partner to help them capitalise on those.
Asking the right questions to the right clients
Once a firm understands its clients’ growth potential, it can then tailor its listening approach accordingly. This goes beyond simply adding a few BD-focused questions to a standard client satisfaction survey. It requires a fundamental shift in the types of conversations the firm has, and the information it seeks.
For retention-focused clients, those conversations might be about understanding their experience with the firm, identifying pain points, and uncovering ways to enhance service delivery. The goal is to reinforce the client’s decision to partner with the firm, and to reinforce trust in its capabilities.
With growth-focused clients, however, conversations need to delve deeper into their strategic objectives, challenges, and aspirations. The firm needs to understand its clients’ future plans, their perception of the competitive landscape, and their appetite for exploring new solutions. This requires asking probing questions, actively listening to the responses, and, crucially, reading between the lines to identify unspoken needs and challenges.
Moving beyond traditional feedback channels
Traditional client listening often relies heavily on surveys and scheduled client interviews. While these tools remain valuable, a BD-driven approach requires a broader perspective – one that embraces diverse sources of intelligence.
Consider the wealth of information available through pitch feedback, even from unsuccessful pitches. Instead of viewing these as missed opportunities, a firm can use them as valuable learning experiences. Analysing the feedback, understanding the client’s decision-making process, and identifying areas where it fell short can provide the firm with critical insights for future pursuits.
Similarly, industry events can provide opportunities for gathering intelligence. Rather than treating these events solely as networking opportunities, the firm needs to approach them with a client listening mindset. Engaging with industry peers, understanding their challenges, and staying abreast of emerging trends can provide invaluable context for its BD efforts.
Tracking opportunities and measuring impact
One of the biggest criticisms levelled at client listening programmes, is their inability to draw a clear line to revenue generation. To properly reposition client listening as a BD tool, we need to address this head-on, by implementing robust systems for tracking opportunities and measuring impact.
Every client interaction – including formal interview responses, casual conversations at conferences, industry events and social gatherings, or even a piece of feedback received after a pitch – has the potential to uncover potential sales opportunities.
By implementing a centralised, always-on system for capturing and managing these opportunities, a firm can ensure that no lead falls through the cracks. This system allows it to track opportunities through their lifecycle, from initial identification to potential closure, providing valuable data on the effectiveness of its client listening efforts.
By adopting this always-on approach, firms can move beyond anecdotal evidence to begin measuring the concrete impact of client listening on its BD efforts.
This might involve tracking the number of new business opportunities generated through client listening activities; the conversion rate of those opportunities; and the overall revenue generated. By quantifying the value of client listening, in a language that resonates with BD stakeholders, the firm can build a compelling case for continued investment and support.
The time has come for firms to move beyond the outdated narrative of client listening as a “nice to have” and embrace its potential as a powerful business development engine.
By segmenting clients, tailoring its approach, expanding sources of intelligence, and rigorously tracking opportunities, a firm can turn client insights into a competitive advantage, driving sustainable growth and solidifying its position as trusted advisors.
Paul Roberts is CEO of MyCustomerLens, an AI driven, always-on client listening platform for professional services firms.
