But what techniques are we using to keep clients, our most valuable assets? Since getting a new client costs much more than keeping an existing one, accounting firms should increase their investment in strengthening client relationships to reduce client losses.

How can you make new client acquisitions true net gains and not just replacements for lost clients? Here are four steps to better client retention.

1. Find Out Why Clients Stay. Many accounting firms may have a good feel for factors affecting client satisfaction. But many of these same firms rely exclusively on their own perceptions without ever asking the client. This mind-reading tendency can be, at a minimum, myopic and potentially dangerous.

Don't take a chance. Verify (or contradict) your perceptions with client research. Client research can provide you with surprising insights about the quality of your services. Things you deemed critical may not be; things you felt were "nice to have" may, in fact, be the cornerstone of the client's satisfaction.

Research itself can aid in the client retention process. Clients will find it complimentary that you hold their opinion of your services in high regard.

2. Find Out Why Clients Leave. Ask lost clients why they stopped using your services. This may be even more important than existing client research. It will highlight the things you did wrong or could have done better.

Like current clients, lost clients will feel complimented when asked for their opinion. You may even find that the very effort of researching lost clients will serve to turn around their impression of your accounting firm, so you can eventually win them back.

Accounting firms that attempt to conduct their own client and lost client research often find they're too close to the services they provide - and to the clients and lost clients - to obtain objective information.

You may find the best research comes from an independent source. The objectivity of outside research will yield the highest quality information and allow you to obtain the information in a non-threatening manner.

3. Develop Profiles of Client Relationships. The research results you secure from clients will allow you to develop a profile of a satisfied client, the positive points of a client relationship, and selling points to use with prospective clients.

Similarly, the lost client research will allow you to profile the danger signals in existing client relationships. After the profiles are compiled, each relationship should be analyzed for patterns of dissatisfaction, and corrective action should be taken.

4. Initiate a Client Service System. To improve current client relationships and your retention of clients, you should -

* establish a consulting-team approach and service assessment for each client. In this case, two (or more) heads are better than one. The more areas of expertise and the more fresh ideas you can bring to the client, the better.

* identify true client needs, not what you think they need. Keep up- to-date on clients' businesses and industries and use the research results to supplement the knowledge you have of each individual client.

* analyze services delivered to the client (services you offer but don't currently deliver) and fill any gaps that may exist. The more services you are providing to the client, the more likely your relationship is to be perceived as essential to that client. And make sure that clients are aware of all your capabilities, even if they have no current need for them - the situation may change.

* provide better quality of service than your competitors. The client considers the technical excellence of your services to be a given. If it isn't, you have bigger problems than client retention.

Quality of service on the other hand, means the responsiveness, timeliness, and personal consideration you give your clients. Do you return client calls promptly? Are you always on time for a client meeting? If you will miss a deadline, do you let the client know as soon as you're aware of the situation? This personal approach can be the factor that differentiates your services from those of competing firms.

* communicate on a regular basis with all clients. For most accounting firms, if a month goes by without some form of contact with a current client, you are not doing a good job of client retention.

This does not have to be an expensive or time-consuming effort; to a certain extent, it can be mechanized and mass produced. Contact can include such things as a regular newsletter; an interesting article relating to the client's business (or yours) with a quick note attached; a personal letter noting an economic change or business issue with which your firm could assist the client; a quick phone call to see how existing work is going; or a holiday or birthday card.

It is important, however, that clients know these personal touches are an essential part of your ongoing investment in the business relationship that will not cost them extra.

Client retention is an ongoing proposition, not one that should begin when you notice a fall-off in clients. By being aware of the intricacies of your client relationships, you'll be making an investment in the future of your accounting firm.