ask a client: it’s not necessarily what you think.
add your opinion; get the instant download.
by rick telberg
at large
the profession has long recognized an “expectations gap†in the public’s view of the role of the auditor. but after hearing from almost 2,000 cpas and finance professionals, i think the profession needs to face another kind of “expectations gap.â€
this “new expectations gap,†as it could be called, is more subtle. it’s the gap between expectations of cpas in public accounting firms and the expectations of their own clients. in our study, 1,799 accountants, finance managers and cpas from all sectors of the profession were queried in an online survey conducted throughout most of 2006.the study is still open. you can add your viewpoint and pick up a free copy of the results so far in an instant download.
to be sure, our research is far from conclusive or definitive. there is much to still investigate and analyze. but if it serves as a starting point for some informed, intelligent discussion, then maybe we’ve done our job.
of our respondents, 62 percent work in public accounting. the rest work in the business, industry, government, not-for-profit, education or vendor sectors. we liberally classify these folks as “clients†because they are on the “buy-side†of the deal. more importantly, three out of four are c-level decision-makers and influencers.
it’s startling to see the differences in expectations between cpas in public practice and cpas in private practice. you might think that the nonpublic accountants would be more forgiving and understanding of cpas in public practice. but time and time again we’re finding that cpas on the client side are extraordinarily demanding and exacting.
and they are in positions of power and influence to make or break an account to a degree unfathomed before. the study makes some interesting new findings about the discrepancies between the behaviors and opinions of cpas and their clients. it might prove useful to both cpa firms seeking to fine-tune their client acquisition and retention strategies, as well as to finance managers charged with engaging a cpa firm and evaluating its performance.
the highlights in this “new expectations gap†include:
client satisfaction – just employees tend to overestimate how well they are doing their jobs, cpa firms grossly overestimate how well they think they’re satisfying their clients. some 93 percent of cpas believe half or most of their clients are sufficiently satisfied to recommend them. but only a bare majority of clients (55 percent) would recommend the cpa firm that they’re currently using.
identifying decision-makers — the overwhelming number of clients believe they — as cpas, finance managers, executives and individuals — are the “main decision-makers†in the hiring of a new cpa firm. but most cpa firms believe the owner is the key person. the truth may be more complicated. only 17 percent of cpa firms estimated correctly that about half of their clients would be “recommenders.†and the trend holds true when all sizes of cpa firms are compared against all sizes of clients. so even among small clients, if they have an in-house finance executive, then that finance executive may have an unexpectedly influential role in choosing a cpa firm.
identifying influencers — cpas underestimate the importance of senior financial executives in the decision to choose a new cpa firm.
client base stability – nearly two in five (38%) of cpas say their average client tenure is “more than 10 years,†but only 25 percent of clients agree. that’s not a sampling error. there is a very real difference in perception. is it true? it may not matter. clients clearly believe they are less tied to their cpa firms than the cpa firms believe.
marketing tactics — the top three marketing tactics that cpa firms plan to launch or increase are:
— increasing referrals
— networking
— web site upgrades
clients might agree with making referrals and networking top priorities, but they would add seminars. of course it needs to be noted that clients, as prospects, see and experience marketing efforts much differently than the marketers who can parse strategy and measure returns.
the study measures more than a dozen marketing tactics.
criteria for evaluating cpa firm performance — in choosing a cpa firm, clients are most concerned about:
— service and attentiveness
— firm’s reputation and quality
— accuracy of the work
cpa firms underestimate the importance of all those things and grossly overestimate the importance of personal chemistry.
it’s clear that cpa clients have a long way to go before the gap in expectations can be closed. maybe this study is a step in the right direction.
[first published by the aicpa]