A company for whom I used to work spent, in one year, an average of $40,000 per customer acquisition.  Assume labor margins run 45% (on the higher side in our space when you factor in management salaries), and you quickly see that the first deal with a new client has to be about $89K in services just to break even.  Whereas, the next deal with that same client will cost…anyone?…Buehler? 

Well, not quite $0 but certainly less than the fully loaded cost.  And, before anyone gets up in arms about $40K being excessive, do this math:  Take the total cost of all sales salaries/taxes/benefits/401k Match (including sales operations), add to it commissions, add to that marketing and advertising (including any SEO, click through, site maintenance costs, etc.).  Add to that all direct selling expenses (meals, airline, mileage, social events, football tickets, etc).  If you are owner operated, don’t forget to allocate a portion of your compensation based on time spent in selling and marketing activities.  In essence, total all costs spent to bring your company to the attention of a new client.  Divide that total by the number of new clients acquired in the year.  Do it for the last three years.  Prepare to be shocked. 

With…

Bill Kennedy posted a great entry called Software Implementation 101.  He makes two great…

Great observations on new user adoption techniques at Energized Accounting, a MS sponsored…

That’s a pretty rough title, but, in this case, true.  Just saw this (Five Great Ways to Drive Your Best Workers…

A rather dramatic title for a blog on managing an IT consultancy, I admit.  So, why use it?

As a career consultant and professional services manager since the late 80’s, I see a pattern of behavior that repeats itself time and time again:  for all the benefit Microsoft technologies can provide a client, and all the strengths a skilled Microsoft partner can provide the same client, at the end of the day most clients and partners find themselves rather dissatisfied with the experience.  And yet, I see very little changes in the behavior of most clients or partners to address this issue.

Sure, as an…