This year’s Business Vision Barometer survey showed a great deal of optimism among consultancies across England and Wales. In total, more than 90 per cent expected some degree of improvement in their business over the next quarter.
But as ever, the survey uncovered a number of challenges for consultancies – and two of the biggest of these were retaining and growing clients, at 43 per cent and 61 per cent respectively.
Put together, we could call this ‘keeping current clients happy’. And yet across the board we know that more focus is put onto new business than onto existing clients.
Pitches and new business processes can cost thousands of pounds – and depending on the size of the client, can venture into five or six figures over the cost of the year. And yet, it is always hard to put a figure onto the amount spent on retaining or growing current clients.
We know that it costs less to keep and grow a client than to acquire a new one – and with 61 per cent of our respondents suggesting that profitability is a major concern – there’s a real area here we can identify as potentially highly productive for consultancies.
Increasing spending – in a measured way – on client retention and growth would not only help to retain and grow clients, but to support profitability too.
If you have a budget for new business, how does this compare to your budget for growing business, and keeping clients happy?