The Most Overlooked KPI for Accounting Firms

South African firms often focus on the usual key performance indicators (KPIs): billable hours, client acquisition rates, and revenue growth. While these metrics are important, many firms overlook a KPI that can truly make or break long-term success: Client Engagement.

Client engagement measures how actively clients interact with your firm beyond transactions. Are they responding to emails? Participating in meetings? Utilising the tools and services you provide? Engagement is a strong predictor of loyalty, satisfaction, and ultimately, retention. A highly engaged client is more likely to trust your advice, renew services, and refer your firm to others.

Tracking engagement starts with understanding client behaviours. Are they logging into portals? Are queries being answered promptly? Are clients utilising value-added services such as advisory sessions or financial dashboards? These behaviours indicate not only interest but also the perceived value of your firm’s services.

Implement tracking through your practice management software to monitor client interactions and identify opportunities for increased engagement.

Another aspect often overlooked is the quality of engagement. It’s not just about frequency, it’s about meaningful interactions. Personalised insights, proactive advice, and tailored communication demonstrate that your firm understands the client’s business and priorities. This deepens trust and reinforces your position as a strategic partner rather than just a service provider.

Use client profiles and historical data to tailor communications and anticipate client needs before they arise.

Engagement also impacts efficiency and profitability. Highly engaged clients are more likely to respond promptly, provide necessary information, and adopt recommended solutions, reducing delays and administrative burden. This allows staff to focus on delivering value rather than chasing information, improving overall productivity.

Set internal KPIs for response times and client follow-ups, and review them regularly to ensure engagement levels remain high.

Finally, in an era where clients have multiple options, engagement is a differentiator. Firms that prioritise engagement not only retain clients but also strengthen relationships, build trust, and generate referrals. Ignoring this KPI can result in missed opportunities and higher churn rates, even if other KPIs appear strong.

While revenue, billable hours, and client growth remain essential, client engagement is the overlooked KPI that drives long-term success. By tracking behaviours, enhancing communication, and delivering meaningful interactions, accounting firms can ensure clients remain loyal, satisfied, and actively involved, turning engagement into a strategic advantage in a competitive market.