Your Consulting Client Relationships - A Make or Break

The relationships you have with your Management Consulting client are essential in growing your business.

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TIMESTAMPS (in case you want to skip) 👇

0:00 Intro
1:03 Real-Life Case Study: Engagement Process
3:02 Second Case Study
4:58 Relationship
6:12 Crucial KPI
7:35 Outro

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In this video, I'm diving into the critical topic of client relationships and why they can literally make or break your business. Using two recent, real-life consulting scenarios, I'll clearly illustrate how different types of client engagements can dramatically impact your outcomes and profitability.

First, I share an experience with a potential new client who approached us with an exciting, sizable project worth around $100,000. Even though we had extensive experience and felt highly capable, the process quickly became tedious—prolonged negotiations, stringent procurement requirements, extensive tender processes, and a heavy focus on price. In all honesty, the likelihood of winning this project dropped significantly, around 5%, because we had no prior relationship, and the client favored familiar vendors.

In contrast, the second scenario involved a previous client reaching out directly. They remembered our successful collaboration from ten years ago and invited us back to assist again. Here, the entire process was streamlined, direct, and focused purely on collaboration and trust. I chose to invest my time and resources in this relationship-driven opportunity, knowing the probability of securing the project was around 95%.

The takeaway is clear—relationships matter tremendously. Investing in strong client relationships not only boosts your chances of winning work but also helps avoid draining your resources on low-probability projects. I've tracked a critical KPI since I started my business in 1997: consistently, 60-70% of our sales revenue comes directly from existing clients returning for repeat business. This statistic highlights the immense value of doing exceptional work, over-delivering, and nurturing ongoing relationships.

If you're just starting out, focus on building these vital connections early. Aim for at least 50% repeat business immediately—make your initial client experience exceptional, so they don't even consider going elsewhere next time. When I first launched, one client alone awarded us 15 projects in our first year, significantly surpassing our sales goals, purely because of a robust and trusted relationship.

Remember, in business, especially consulting, relationships are everything.