nine things we know for sure about how to grow an accounting firm

by bruce w. marcus

the fact remains we know far less than we should about why, when or how people choose to do business with an accounting firm – or with one firm over another.

but, in light of what we do know, and considering the singular nature of marketing professional services (as compared, for example, to product marketing), what works?

or more specifically, what seems to work?

1. name recognition. except for corporations and very large or national companies, people tend to buy names they recognize. the concept of branding seems to have crept in under the door, but in accounting, branding is simply jargon for name recognition. (professional services marketers seem to be attracted to jargon like flies to honey.) stick to the real world and plain english – it works better. establishing name recognition, however, is easy – simply inundate the market with your firm’s name. an ad campaign that says little more than “smith & dale is a cpa firm. we do good work” and saying it over and over again will give you name recognition, but little more. it helps, but it’s not everything.

2. reputation. if your firm has a reputation for resolving problems, or for service, or for not overcharging, or for anything good, it goes to building trust – which is an essential element in professional services. trust is an essential factor in retaining professionals.

3. specialty. if your firm has a reputation in a specialty – estate planning, cash flow management, etc., it’s a major factor in being considered by a prospective client.

4. demonstrating expertise. a significant reason you are asked to propose is that your reputation is founded on demonstrable expertise. this is accomplished by such activities as writing articles, social media, speaking, participating in seminars, public relations and other such devices.

5. networking. in the old days, it was the golf course or the country club. today, it’s done by planned participation in organizations in the fields served by your prospective clients. case history – a client of mine belonged to an organization of business people. her specialty was labor law. the problem was that another member, who was also a labor lawyer and a competitor, was running seminars for the organization’s members. our plan was for the client to become visible and active in the organization, volunteering, offering to run for office and so forth. we then came up with a specific seminar idea that hadn’t been done before. it worked. harry potter and his wand couldn’t have done it better.

6. client referrals and word of mouth. clients who are particularly satisfied with your work will enthusiastically recommend you to other prospective clients. your clients may have to be prompted, but it’s worth the effort. word of mouth (now called by the peculiar name, viral marketing – more jargon), in which people tell one another about your virtues, is a marvelous concept, but difficult to generate. you have to do something worth talking about, though (my accountant saved me thousands of dollars, etc…). viral marketing will, in the long run, sell more beer or tomato soup than it will accounting services.

7. influentials. in  accounting, there are always people from other professions or trades who are in a position to recommend you. not just lawyers who recommend accountants, or vice versa, but bankers, business leaders, relatives and friends. a client once told me that if he could take a banker to lunch once a week, he’d double his practice in a year. a colleague asked, “but what do i talk about? our firm?” no, you talk about his or her business and clients. you listen. and if you listen carefully, you’re going to hear something to which you can say, “we can help with that. can you arrange an appointment?” it works.

8. serendipity. or luck, is more like it. a former client of mine claimed that he brought in clients by hanging out in a bar and conversing with strangers. and he did both. everybody has a story, and if you’re lucky, and listen, and play it right, you can do it too. however, serendipity is great, but you can’t build much of a practice on it.

9. practice development. at some time in every marketing campaign, the name recognition and reputation and networking come to a point at which the prospect has to agree to start monday. this may require some heavy-duty work, which is how the concept of practice development comes into play.

in the end, the prospect must be sold. a request for a proposal may have to be answered. the prospect may be considering other of your competitors. this goes well beyond the skills of name recognition and reputation building, which is why the specialty of practice development evolved.

posted on january 5, 2014