This article originally appeared in the March 2024 edition of INSIDE Public Accounting Monthly. To subscribe, click here.
Forward-thinking accounting firms are embracing a new role – a client success manager – to lower response times, lighten the load for partners and cement strong relationships with the most important clients, who just may buy more services as a result.
Client success managers can take different forms – at LBMC they’re called client account service managers (CASMs) – but the concept is the same. Rather than a sales professional who is continually finding new clients, these managers nurture connections to existing top-tier clients by serving as the point of contact who coordinates services, in-person meetings and regular business reviews.
Mark Burnette
Many partners take on all that work themselves, but it’s not easy when there’s too much work to do and not enough people to do it. And many firms agree that it’s a good concept but they haven’t created a formal structure for the role, said Mark Burnette, chief growth officer at Brentwood, Tenn.-based LBMC (FY23 net revenue of $192.7 million).
“In today’s accounting firm, partners have so many demands on their time,” he said. “Partners are still expected to be at the top of their profession for technical expertise, so they have billable hour obligations. Partners are expected to lead teams and services, so they have people management responsibilities and they’ve got business development responsibilities.
“Almost any partner would tell you they know what they need to do to be successful, but they don’t have enough time to get it all done.” Partners tend to do what they enjoy and business development often takes a back seat.
David Toth, chief growth officer and principal at Winding River Consulting, says clients complain more about communication and responsiveness than anything else when it comes to their experience with their CPA.
He knows firms of $23 million to $250 million with client success managers who turn out to be the firm’s new secret weapon to improve client experience and personalization for top accounts. Since partners are overstretched, client success managers can respond more quickly serve as a bridge between the client and the CPA. They can play a key part in helping firms evolve and grow their advisory practices, something all firms are looking for, he said.
Here are the activities of the CASMs at LBMC:
- Serve as the point of contact – While no one restricts a client’s access to the partners, the CASM is typically the first person the top clients call because they’re more accessible. Additionally, they’re often the first ones to know if clients are not happy and they can quickly work with the client partner to address it.
- Maintain strong relationships – The CASM will ensure fast response times, serve as an advocate for the client, and understand the people and politics of the business. As a result, client retention can improve.
- Offer proactive support – The CASM thinks ahead to what the client and the firm needs. For example, the CASM will make sure partners get in touch with new client business leaders if there’s turnover.
- Schedule regular in-person business reviews – The meetings should have a structured agenda that includes an outline of services to be offered, feedback on past work, a discussion of outstanding services and a business update from the client, Burnette said. “The more in-person interactions we can have, the better it has been.”
- Coordinate multiple services – Business reviews can result in discussions about additional services the firm can offer. The CASM can smooth out any bumps and answer questions.
- Provide “news you can use” – The CASM will send clients a link to a podcast, blog or other thought leadership pieces produced by the firm and ask if they want to meet with the subject matter expert.
Considering this new role? Burnette and Toth offer some tips:
- Develop a structure – Think about whether a client success manager should focus on an industry, a service line or take a broader approach. Set goals for the role.
- Focus on top-tier clients – LBMC has three CASMs, two in the cyber practice who support between 30 and 40 clients each and one at the firm level that focuses on health care clients. All focus on the most profitable or high-potential clients, with enough clients assigned to keep them busy but not too much that they can’t offer the white-glove service expected of the role. Toth suggests the top 5% to 10% of clients.
- Find someone who is assertive yet friendly – Client success managers must be willing to ask if the client is interested in additional services or whether the firm should bid on a service. They should be organized, likeable and an excellent communicator. They need to be familiar with how the firm operates, but they don’t need to be a CPA, Toth said, adding that a CPA who wants to shift away from technical work might be a good fit.
Track progress – LBMC challenges account managers to sell additional work and they are incentivized to do so. “We have some pretty wild success,” Burnette said. “Our account managers who’ve been doing this for a while are getting between 30% and 40% new services sales at their assigned clients on an annual basis, which is a pretty darn good growth metric.”
