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Managing Client Relationships

Client Strategy

Mathias Client Relationship Methodology

Mathias Client Advisor
Client Strategy
"If you don’t have a client strategy, you will inherit your business strategy from your clients."

Peter Mathias

Should customers be given the same importance in the core management processes of the company?

For Senior Management teams who are considering how to accord Customer Assets the same level of importance as Human and Financial Assets, our research and consulting experience suggests that they need to address five sets of inter-related questions.

1. To What Extent Does the management committee explicitly link strategic customer relationships and shareholders?
2. Should customers be part of the normal quarterly reporting of business performance to Institutional Investors?
3. Should the board of the company have a process to measure progress and performance against a clearly identified group of strategic customers?
4. Should the company’s performance on strategic customers become part of the CEO’s balanced scorecard metrics?
5. Can we show that there is a connection between the company’s performance with its strategic customers and its marketplace valuation?

The CEO's Agenda of Strategic Customers The CEO´s Agenda on Strategic Customers: How to Make Your Company Customer-Driven The CEO's Agenda of Strategic Customers

Our Client Strategy work gives our clients a clear benchmark of the quality of their key relationships and their processes for managing these relationships in compraison with their peer group.

Our approach is unique because

  • we look at data for a sample of key clients and work on a client by client basis.  We don’t just look at aggregate data.

  • we contrast the top down view of the relationship (sector plans, client plans) with bottom up data (call reports, win/loss reporting, customer service and relationship profitability) and compare both to the way which your clients allocate their business across institutions.

  • we cross reference the different coverage perspectives – geographic, product, relationship management - of the firm's relationship with the client.

  • we cross reference this with the positioning and ambition of your firm vis a vis the performance of your peer group.

Our Approach
We have a two-stage methodology: we first benchmark the quality of your client relationships against similar firms in the industry; then after refining our initial hypotheses with actual client data we make a series of detailed recommendations.

Stage 1 Benchmarking vs. Peer Group
Based on initial discussions with the program sponsor, we develop a set of hypotheses and look at a range of past and future indicators of relationship breadth, depth and profitability. We analyse product capability and cross-check this with how your clients allocate their business. Specifically we assess:
  • Aggregate profitability of the relationship
  • Individual product profitability
  • Product strength and weaknesses
  • Firm’s tier position with clients
  • Sustainability of this position
  • Quality and efficiency of coverage
  • Current vs Potential Positioning and Challenges to achieve it
Stage 2 Validation of Hypothesis & Recommendations
Using the outputs of the benchmarking stage, we test our hypotheses with the management committee and discuss the customer issues faced by the firm and possible responses to address these issues.

We deliver recommendations to close gaps that are apparent between current performance and long term objectives with the firm’s customer base. Specifically, we address:
  • client segmentation and selection
  • coverage model
  • planning processes
  • lines of accountability for relationship and revenue objectives
  • client management technologies to leverage coverage efficiencies