It takes quite a lot for a company to switch tax consultancy firms. That said, it does happen from time to time. However, there are even more reasons to implement measures to retain existing clients. Anything that fosters loyalty also optimises collaboration. The added value for both sides can therefore be wide-ranging. HR specialist Philipp K. Bernhardt not only helps companies find new staff, but is also well versed in client support and retention strategies. On „hsp live at 11“, he explained the levers that firms and tax professionals can utilise to optimise client retention.

Philipp Konstantin Bernhardt He has been running a sales agency for eight years. Together with his team, he helps sales staff to improve their skills. He also helps managing directors to sell more effectively and retain customers. Sometimes, however, it’s also about weeding out the wrong customers. In addition, the company operates in another area: recruitment. Philipp He and his team help companies find the right sales staff.

Tax practices and clients have traditionally had close ties. The typical „customer retention strategy“ is not needed in the tax sector. Instead, Paul suggests the term „client development“, which Philipp picks up on straight away. The sales expert recalls the film *The Founder* about the founders of McDonald’s. In the film, the founders try to secure a bank loan. They fail because they present themselves as burger cooks rather than – as would have been legally correct at the time – as property investors. Background: Ray Kroc, founder of the McDonald’s Corporation, wanted to acquire plots of land for new branches in order to lease them to franchisees. The question that tax practice firms – just like any business – should therefore ask themselves is: Who do I want to be for my clients? Does a firm want to be „just“ a tax practice for its clients – or an innovation partner, a digitalisation consultant, and so on?

Law firms should specialise in certain types of client

Paul notes that many law firms simply do not have the time to focus on client development. How should they go about this? Where should they start? Philipp recommends taking a look at their own clients and drawing up a list of criteria that sets out the type of clients the firm wishes to serve in future. However, clients who are not a good fit for the firm should not simply be turned away. To ensure the separation is handled in a spirit of trust, a firm can recommend an alternative tax consultancy that might be a better fit for the client.

The next question concerns the firm’s strategic direction. In order to be in a position to tackle the issue of client development, the firm and the client must trust one another. Not only that, but both must be pulling in the same direction. Often, however, this is not the case. Either their objectives do not align – or, whilst potential clients might fit a firm’s ethos, there is a lack of rapport on a personal level. What can the firm do to win over potential clients despite this? Philipp identifies four principles of trust that must be in place: Trust in the product, the tax specialist, the firm and oneself. If any one of these points is lacking, the individual will not even reach the purchasing decision stage. The firm should therefore identify the areas for improvement and assess to what extent these can be adjusted.

A forward-thinking law firm doesn’t just tick boxes; it drives its clients forward

At this point, Philipp briefly shares some sales insights. In short, the key point is that people need to process information in different ways in order to be persuaded to make a purchase. Whether this involves reading information material, watching a live demonstration or something else, companies or law firms must determine this for themselves based on their own criteria. To ensure that client relationships can develop, law firms must maintain regular contact with their clients. The appropriate frequency depends on the individual client. For some, a monthly meeting is sufficient; for others, spontaneous updates may be necessary, as important changes are constantly taking place within the sector.

These days, clients are not grappling with simple problems. The challenges and objectives they face are more complex than ever before. Tax firms should ask themselves what these challenges and objectives look like – and whether they are the ones who can help their clients achieve these objectives.