The more projects a client buys from you the better they are served and the more you ‘put a fence’ around the client. It makes it harder for them to leave your firm if they are buying (on average) 4+ services from you.
This KPI however should not be about retaining clients (although that will happen); it should be about servicing them properly.
If you are doing your job currently by building close relationships with your clients, meeting them frequently at no cost, you will get to know them and you will find many projects and opportunities.
To work out the number of projects per client take your invoices sent number and divide the number of clients into it. Typically it will be around 2 projects per client per year.
Here’s a simple test. In a table list all your services across the top and all your clients on the left hand side. Apply a ‘tick’ or a ‘cross’ to each client and each service and see how many ticks you come up with. This is a measure of your ‘services penetration’. It’s called a client service matrix.
My guess is that less than 15% of your clients buy every service you have to offer! Yet many clients need your additional services – they just don’t know they exist because you have never offered them!
If you have a focus on ‘all clients you want to keep’ then you will make sure they are buying what they need to succeed.
By the time you have worked out KPI 11 & 12 your numbers might look something like the table below.
|Average project value – KPI # 10||$3,129.89|
|Number of clients||192|
|Number of projects per client KPI # 11||3.3|
|Average fee per client||$10,416.67|
I have written an extensive report on Accounting firm performance. You can download it here.