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Client database – valuable yet neglected Your firm’s list of contacts is critical to your marketing activity, and it can have a tremendous monetary value, too, so make it a priority.
T his industry is still doing a poor job of building and maintaining a good client database, also known as CRM, or Client Relationship Management. We see it all the time when we are working inside firms. Furthermore, our research shows that the average A/E firm’s database equates to 40 names per employee. That is horrendously low. Just think about the number of work-related contacts in your mobile phone and how that would affect the number you could claim as your contacts. I often stress the importance of making the distinction between marketing and sales for the purpose of measuring return on investment. The client database is clearly a critical marketing function that requires investment. Your client database is essential for many of your marketing activities so it’s time we start acting like it.
Chad Clinehens
invest in it, the more it’s worth. You realize this value in being able to better market your services, which in turn drives growth in the enterprise. You can also realize a nice return in the form of cash if you were to sell your firm to the outside. In a trans- action, a buyer is going to consider a great client database as one of your most valuable assets. For “Our research shows that the average A/E firm’s database equates to 40 names per employee. That is horrendously low.”
Here are a few suggestions to inspire some changes in your client data management policy: ❚ ❚ Less is more. Consider tying your CRM into your financial management software. Fewer databases is better. I am shocked at the number of firms that have three or more. Consider the inefficiencies and inaccuracies created by multiple sources of client information. We don’t dedicate enough resources to adequately keep up with one database, let alone two or more. Firms have more options than ever for cli- ent data management. You can buy an all-inclusive product or you can even tie in multiple databases using scripts or apps. ❚ ❚ View it as an asset. Your client database is an asset that actually has a monetary value. The more you
See CHAD CLINEHENS, page 10
THE ZWEIG LETTER April 11, 2016, ISSUE 1147
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