calling the right plays means understanding your clients and their goals, as well as their weaknesses.
by jody padar
radical pricing – by the radical cpa
it’s up to you to recognize the client persona most suited for your firm, but you’ll want to start by defining your customers’ needs. so, what do people really want, and how can you figure it out?
more: value pricing requires defining your clients | how value pricing impacts your employees | six steps to start value pricing | stop selling time | why pricing is so disruptive | the radical pricing model: start with $25k | three critical factors drive the value pricing trend | accounting disruptors are heading your way … with deep pockets | the convergence of trends makes pricing changes imperative | stop looking for talent that does not exist | advisory work must be priced by value, not hours
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certainly, you can engage in expensive research, from questionnaires to focus groups. but, in reality, most of the clues you need will come from your knowledge of the people you work with within that group.
this really comes down to recognizing common traits in the people you work with. all small business owners won’t be “joe small business” personas and all real estate developers won’t fit the exact definition of “the real estate guy.” however, it’s always interesting to see how similar people are attracted to the same types of careers. a persona won’t match everyone in the bucket perfectly, but the right persona will describe most of those included in that group.
you want to be very specific about needs and desires based on each persona. the more specific you are, the better you’ll be able to define your standard services, understanding how they must vary by industry. you’re so specific that you give your persona a name, and that’s how you will refer to this buyer group in the future.
you’ll also want to explore each persona’s:
- responsibilities and pressures
- strengths and weaknesses
- likes and dislikes
- personal and professional goals
- who or what influences him/her or impacts decision-making
- financial skill set
this information helps you determine how to be the financial partner this persona needs. the more you know and understand about them, the more you can help them succeed at managing everything. and the more you can help them succeed, the more they’ll love you! for example, let’s dive into the typical “joe small business” persona and see how understanding that persona can help you deliver exceptional client service.
who is he?
joe small business could be an it consultant, plumber, gas station owner and anyone else whose small business represents the vast majority, if not the entirety, of their family’s wealth. he owns a business because he doesn’t want to answer to someone else and is good at what he does. he is likely not a business expert and knows a little bit about accounting and tax work, but not a ton. he is educated, and he has a technical skill set that serves his industry. his knowledge base tends to be narrow and specific to his industry.
about the business
joe is likely an llc or an s corp. he is a flow-through entity and likely needs to discuss his own liability outside of the business. in fact, he probably isn’t aware of how much easier and tidier his life could be if he had a financial plan.
goals
his primary interest is to reach and then maintain a comfortable status quo, so he is not as concerned with dynamic growth. perhaps he grows a little over time, but his goal is to build and sustain a solid business. he relies on repeat business and wants to remain consistent. his financial goals are compliance and paying as little as possible in tax.
in an interesting twist, this is the persona targeted by many franchise operations with the idea of bringing business and marketing skills, as well as succession opportunities, to people already skilled in their business. joe is often targeted by numerous outside consultants who sell him services his accountant can provide often for up to three times what the accountant would charge (e.g., profitability, employee retention credit, etc.).
he may or may not want advisory services, depending on how you position them. you have to think about services specific to his goals. so, do not pitch him growth-oriented services if he is not growth-oriented. this persona is usually anxious to tap into technical-oriented services, including it management and cybersecurity. he is also likely interested in services that make his organization more efficient.
wants
beyond your financial and business expertise, he likely also wants access to your broader network. he wants you to be a confidant and a professional partner and to provide connections that could potentially help his business.
likes
he likes responsive action to his questions. he wants to pay fair fees, and he definitely wants to see value in what he’s paying for. most importantly, he wants peace of mind. he’s relying on you to provide it by being an intelligent voice of reason who knows his industry and the best financial path through it.
dislikes
joe dislikes anything that takes more time or money than he’s comfortable spending. he definitely does not like waiting for responses to his questions. he wants to know you care about his business and wants to feel confident you have his best interests at heart.
who does he trust?
he trusts his accountant, his circle of professionals and his local chamber of commerce. because of the scale and nature of his business, he is likely to listen to his local neighbors, who are also often his customers. so, even though he relies on you remotely, much of his input comes from his native environment.
who influences him?
office employees, especially an office manager, tend to be his biggest business influence. his office manager typically runs the show, holds a position of trust and is occasionally a spouse. peer networks are another source of influence to consider. these small businesses often have a family component. maybe the owners are married, a couple of brothers, or generational. when you’re working with a family dynamic, you have to be sensitive to it and measure how those dynamics will impact your relationship.
what are his challenges?
he may not believe the bank statement. he may try to get away with some things regarding taxes and write-offs. consequently, he may get caught up in the immaterial. he is very technically minded, and he may try to get technical in the bookkeeping accounting space, even though he doesn’t have the chops to back it up. other challenges may come from the influential people in his life: a spouse, an office manager or a family member. you have to be sensitive when dealing with these other constituents. they, most likely, will wield more influence than you. though joe is technical, he usually relies on a bookkeeper whose technical skills don’t match their title. this person may have started out depositing checks at the bank, but now they’re charged with the bookkeeping and may not even want that amount of responsibility.
accountant responsibilities
you will have to communicate with all these different personalities to align them, provide them with timely information and keep the pathways of communication open. joe and his team really have one goal: to stay on top of their responsibilities and be proactive. your job is to facilitate.
processes and tech
joe lives in a disconnected, decentralized world of manual processes. he relies on multiple systems to keep his business moving. these likely include quickbooks desktop, inventory and payroll systems, just to name a few. his finances may also be disconnected. he may have a few different checkbooks, and perhaps he has to look at multiple checking and savings accounts to find money.
so, what do you do with this persona? first, recognize that detailing a persona makes it easier for you and everyone on your team to understand this client grouping. that makes it easier for you to serve all your joes. from there, it’s all about goals – his and yours.
your firm’s goal should be to deliver joe to a world of automated, holistic order. you want joe to be up and running on quickbooks online, connected to his payroll system, his pos or other industry-specific programs. and you want all of this to be cloud-based and real-time so joe can have full financial transparency. now, instead of checking his bank account for funds to pay his suppliers, he will have fully integrated dashboards.
once you and joe know where he stands financially, your team can plan and strategize to help joe meet his capital improvement goals or anything else he has in mind for the future of his business.
after you have joe’s business on a solid, smoothly running path, you can help him prepare for succession and eventual retirement. get his financials automated and synced to provide a holistic perspective on joe’s life and business. this is a significant financial planning opportunity. does he have a retirement account that is not connected to his business? why or why not? and who is the financial planner? minimally, you should be the financial quarterback.
and now that you know your joes, you can be their mvp.