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Keep clients happy.


Arvid Mostad, a senior partner at Mostad and Christensen Inc., a CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000.  firm in Oak Harbor, Washington Oak Harbor is a city located on Whidbey Island in Island County, Washington. The population was 19,795 at the 2000 census.

Oak Harbor was incorporated on May 14, 1915. History
Oak Harbor is Whidbey Island's largest incorporated city.
, says he learned a business lesson the hard way--by losing clients.

Many clients, he explains, initially engaged his firm for the personal service it offered--and, initially, they got just that: A senior partner made all the client contacts. In time, though, recognizing it would not be possible for those senior partners to make every client call--especially for minor questions or issues that could be addressed in a telephone conversation--he arranged for subordinates to make those contacts. So, for example, when the need arose, Bob in bookkeeping bookkeeping, maintenance of systematic and convenient records of money transactions in order to show the condition of a business enterprise. The essential purpose of bookkeeping is to reveal the amounts and sources of the losses and profits for any given period.  or Carol in payroll would call a client for information or handle a client's inquiry.

Shortly thereafter, Mostad says, he was surprised when some clients began to leave. When he asked them why, they said they felt they no longer were getting personal service, that they were being handed off to subordinates. Apparently, clients were interpreting those contacts from subordinates as evidence junior staff members now were servicing them. His explanation that senior partners always provided full oversight
For Oversight in Wikipedia, see Wikipedia:Oversight.


Oversight may refer to:
  • Government regulation — The role of an official authority in regulating a separate authority.
 came too late; they already had engaged a new firm.

It didn't take Mostad long to decide timing was the problem. "We therefore made it a point to immediately explain the firm's policy that senior managers would always provide oversight and that specialist staff members would be handling routine issues," he added. "We explained that these specialists could get the work done faster and at a lower fee than if a senior partner made the contact."

Still one client, an insurance agency with a staff of 15, wasn't convinced. Its manager insisted he didn't want anyone working on his files except a senior partner. "He saw the light when I pointed out to him that he personally did not collect my premiums or handle my claims and that such duties were delegated."

Mostad says the process of better communication has made for happier clients, better retention and more referrals.

Have you solved a similar problem? Consider sharing the solution. Send the information to me at zarowin@mindspring.com.

STANLEY Stanley, town (1991 pop. 1,557), capital of the Falkland Islands, S Atlantic Ocean, on East Falkland island. It is the main port and trading center of the islands. The name is sometimes written as Port Stanley.  ZAROWIN, a former JofA senior editor, is now a contributing editor A contributing editor is a magazine job title that varies in responsibilities. Most often, a contributing editor is a freelancer who has proven ability and readership draw.  to the magazine. His e-mail address See Internet address.

e-mail address - electronic mail address
 is zarowin@mindspring.com.
COPYRIGHT 2004 American Institute of CPA's
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2004, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Golden Business Ideas
Author:Zarowin, Stanley
Publication:Journal of Accountancy
Date:Jul 1, 2004
Words:371
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