Posts Tagged ‘Promoters’
Wednesday, January 25th, 2012
Here’s a simple idea to help you build a great business:
- Every time you need to make a decision about your business, ask yourself “How will this impact client satisfaction?
- Every time you spend money for your practice, ask yourself “How will this impact client satisfaction?
- Every time you make a staffing change, ask yourself “How will this impact client satisfaction?
- After a client meeting or interaction, ask yourself, “What did I do in today’s meeting to improve client satisfaction for this client?” and “What should I do in our next meeting to improve client satisfaction?”
- Every time you are presented with a client complaint, ask yourself the question “Did I seize the opportunity to turn this client complaint into an opportunity to improve client satisfaction?”
- At the end of the day before you go home, ask yourself, “What did I do today to improve client satisfaction?”
Fred Reichheld is a thought-leader in the areas of client loyalty and satisfaction. In his book, The Ultimate Question (“How likely is it that you would recommend us to a friend or colleague?) states that if you can increase your Net Promoter Score ((Percentage Promoters (9 or 10 scores) – Percentage Detractors (0 – 6 scores)) by 12%, you can double the growth rate of your business.
If you refer to our blog entitled What’s the Compound Growth Rate of Your Business and What’s That Costing You? and use the embedded spreadsheet, you can calculate that a $50 million business at a compound growth rate of 10% will grow to approximately $130 million AUM over the next 10 years. At a 20% compound growth rate, it will grow to $310 million AUM. If you were to sell your business at the end of 10 years, the difference in total pre-tax income is just over $6 million.
By focusing on your processes for improving client satisfaction instead of results, like revenue or assets under management, you will achieve greater results. Focus on the process and let the results take care of themselves.
What’s the first step in achieving and maintaining sustainable growth of 20%? Increase client satisfaction.
About Bob Simpson
Synchronicity Performance Consulting has been coaching financial advisors since 1998.
Bob Simpson, president and founder of Synchronicity has been involved, directly or indirectly in the financial services industry since 1981. He has been a very successful financial advisor with Nesbitt Thomson Inc., a major Canadian financial institution. Between 1981 and 1989, he built a business with more than $120 million in assets under management and was one of the first Canadian advisors to build a team.
Tags: 10 Years, 50 Million, 6 Million, Ask Question, Assets Under Management, Aum, Client Loyalty, Client Satisfaction, Colleague, Compound Growth Rate, Detractors, Focus, Fred Reichheld, Interaction, Magic, Net Promoter Score, Promoters, Satisfaction Client, Spreadsheet, Thought Leader
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