Some of your clients use concierge medicine in which they pay an annual subscription for conveniences like same-day appointments and 24/7 physician availability. I'll bet most of them don't pay the extra money because they think the concierge physician is better educated than general practitioners and specialists in mainstream medical practices. They're paying a big premium so they can always reach their doctor.
And, when concierge patients arrive for their appointment, they're never stuck for long in the waiting room. Concierge doctors serve far fewer patients than mainstream doctors. They can return patient calls faster, see them sooner and spend more time with them during appointments. Time is money. So, concierge medicine is more than worth it for busy, successful people like your clients.
So how does concierge medicine relate to our industry?
Accountants are always telling me they want to serve fewer clients and raise their fees. Great. But what they often forget is that in order to charge clients higher fees, they have to deliver more value. One of the main drivers of value in our profession is access — just as it is for concierge doctors. When clients pay you higher fees, they expect to be able to reach you all the time and that you'll call them back ASAP — not 24 to 48 hours later (or even longer) like you do for regular clients. But if you're bogged down serving too many other clients, you can't call your best clients back pronto. If you want to charge concierge-level fees for your service, then you must provide concierge-level access.
Transitioning to a concierge practice
The first step is to review your book of business. Look at the bottom 20% of your clients. Think about how much of your time (and your team's time) those people are taking up. I know it's hard to let go of clients. I know it's tempting to say: "We should keep serving them because it's extra revenue." But if you're like most firms, the bottom fourth of your clients account for less than 5% of your revenue. And if you're being honest, those bottom 20% to 30% take up a lot more than 5% of your time. Does it really make economic sense to keep investing so much of your team's time and resources to serve clients representing such a small percentage of your revenue stream? For more, see my article "
Do yourself and your C and D clients a favor: "graduate" them to another firm. Many firms will welcome them with open arms, and you'll be freed up to provide higher margin services to your better clients.
Every professional service firm I talk to from inside and outside the accounting industry tells me the same thing: their best clients are always asking them for more services and more advice about different components of their business. Another benefit of serving fewer clients is that you won't be exhausted all the time. That means having more energy and more focus available for your best clients. Ultimately that translates into better quality work for each client, which means happier clients and more referrals.
Your staff is going to love the new business model too. They're going to be thrilled to let go of your C and D clients because it's your team members who get beat up the most by low-priced, high-maintenance clients. Those are the clients who also wait until the last minute to get you the documents you need and who then keep asking, "When's my return going to be ready?" They're the ones who complain about a $9 increase in your fees. Sound familiar?
When your staff is less exhausted from low-margin high maintenance clients, they're going to have more energy and patience for your best clients.
Next steps
Many of your clients would love to have more conversations with you, but you're so overwhelmed by tax work, you don't have the time. As an experiment, reach out to your 10 best clients and ask each of them this question: "In an ideal world, how can I help you the most? How can I best help your business and your family grow?"
See what they say.
When you're serving fewer clients, but charging them more, you have the bandwidth to go the extra mile for each client and serve them well. Once you start doing that, word will get around, and you'll have more and more prospective clients calling to get the same level of concierge service. It becomes a very positive feedback loop.
What is your firm doing to provide higher value services to your clients? I'd
