Name: Patrick J. McDonnell
Title: President and chief executive
Company: The McDonnell Company LLC
Location: Lake Forest
Company type: Organizational change consulting
Founded: 2000
Employees: Sole practitioner
Web site: www.themcdonnellcompany.com
As the young managing partner of a Big Eight accounting firm in the mid-1980s, I was committed to “growing our business.”
For us, that meant chasing the next client. We had new business campaigns, meetings as well as bonuses and promotions for those who brought in a new client.
We spent an enormous amount of time chasing prospects and preparing proposals enumerating in great detail the outstanding service we would provide.
One day, as I was reading yet another proposal of services in which we were promising the prospect “outstanding service” provided by our “skilled professionals” who would be available at a “moment’s notice” etc., I asked my partners around the table “… are we providing our current clients the same level of service we were providing this prospect?”
I noted, in particular, our assurance that the prospect’s Form 1120 corporate tax return would be delivered in a “timely” fashion.
Since far too many tax returns were delivered to our existing clients the afternoon of the Sept. 15 filing date, I asked my partners around the table if we were providing this level of service for existing clients.
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Their blank stares answered my question.
Recognizing our opportunity–and vulnerability to competitors–we decided to “propose” to our major clients as if they were prospects.
In particular, we committed to delivering, and discussing, the tax return no later than June 30.
The results were dramatic. We generated substantial revenue with no marketing cost, solidified client relationships and created a strong base of endorsements.
The most significant source of new revenues? Tax planning opportunities from our “new” clients, which also created a strong base of endorsements to support our pursuit of new clients.
The experience taught me a lesson that I have never forgotten. Your best clients are your best source of business–and your competitor’s prospects. Take them for granted at great peril.
During a long business career, I have seen companies of all sizes make the same mistake. Don’t be among them.
Keep chasing those new customers, but be sure you don’t ignore those who are paying the rent.
The only thing you should be working harder at than bringing in new clients is serving the ones you have.