REVVING UP REFERRALS: HOW SMALL TAX FIRMS CAN BOOST REFERRALS

Transcription

1 REVVING UP REFERRALS: HOW SMALL TAX FIRMS CAN BOOST REFERRALS

2 INTRODUCTION In the world of small tax and accounting firms, the business that comes from word-of-mouth referrals is often the bread and butter that keeps firms in the black. Why? Because trust is a hugely powerful element in business relationships involving finances. When it comes to interacting with a tax professional, many consumers and business owners are simply more comfortable working with someone who comes recommended to them rather than placing their faith in a random stranger. Research backs up the importance of cultivating business referrals. A recent Hinge survey of accounting service clients in the U.S. determined 87% turn to friends or colleagues first when seeking referrals for such services. Sellers overestimate the importance of cost and customer service as primary selection criteria, and they underestimate the role existing relationships, referrals and recommendations play, note the study s authors. None of that means referrals are easy to come by. And the self-promotion involved in generating them doesn t always come easy if you re an analytical tax professional who would rather focus on accounting and tax nuts and bolts than marketing. Often, getting the ball rolling takes planning, marketing know-how and a willingness to get out of your comfort zone so you can ask others to take steps to recommend you. Most accountants are trained to be technical experts first, managers second and business people third, and not all firms provide training in business development, notes Courtney L. Vien in the Journal of Accountancy. But at its core, business development is all about building relationships and demonstrating expertise skills that can be acquired with time and practice. With that in mind, how do you get more referrals? Read on to learn the easiest and best ways to rev up your referrals by maintaining a history of excellent work, making a point of requesting recommendations, using content marketing to nurture leads, and ensuring you re digitally prepared for any and all queries that come to you online. cloud.mostad.com 2

3 1 SELF-PROMOTION: NOT JUST A MARKETING BUZZWORD The good news is that persuading others to vouch for your services may not be as difficult as you think. In fact, studies show satisfied customers are often more than willing to pass on your name to others once they become aware of how much that could help you. The Hinge study found that 75% of U.S financial services clients have recommended such vendors to others. While that number is high, 52% of those making the recommendations wait to be asked before providing them and 43% haven t made referrals simply because no one asked them to do so. Asking your satisfied clients to pass on kudos about your firm is key in getting the referrals to grow your firm. And often, your most valuable word-of-mouth comes from casual conversations between those who know of your work and those seeking such services. The relationships are out there, but they ll likely remain out of reach unless you actively pursue them, writes Ray Silverstein in Entrepreneur. It may never occur to your current contacts to broker an introduction. It s up to you to put the idea in their heads. 75% of U.S financial services clients have recommended such vendors to others. cloud.mostad.com 3

4 A few specific suggestions for requesting such recommendations: Include language about referrals in your initial agreements or contracts with clients. Some sample wording: Once you observe the quality of our work, we respectfully request that you pass on our name to others in your network who may be seeking similar services. When responding to positive feedback from clients, automatically include a sentence or two reminding them to consider sharing that praise with others. Be specific about the kinds of clients with whom you re apt to be a good fit; that keeps everyone involved from wasting time. Make referrals a two-way street; also bestow them on behalf of others, making key introductions whenever you have the opportunity. Remember to thank those who provide recommendations on your behalf, whether you buy them lunch, send flowers or simply write out grateful s, texts or letters. When preparing for meetings with clients, plan to (briefly) make a referral request one of your talking points. Challenge yourself to make a certain number of referral requests each week, targeting business associates, friends, family members and acquaintances in addition to current clients. Practice the language you ll use in your referral requests so they don t sound forced or smarmy. Include language about referrals in your initial agreements or contracts with clients. cloud.mostad.com 4

5 2 BUILDING CREDIBILITY: IT S (MOSTLY) ABOUT THE TRUST Beyond your ability to approach clients about referrals, of course, you must also consistently maintain high standards of excellence. The best referral marketing program in the world isn t going to help you if you don t have satisfied clients who feel comfortable vouching for your expertise, credibility and trustworthiness. Once you know which clients have formed positive opinions about your performance, you can ask them to offer testimonials, act as references, or simply pass on your business card to others in their business and social circles. Lack of industry knowledge is most likely to lose you a new prospect, Ray Silverstein notes. And if you want to unseat an incumbent, you are more likely to do it through specialization and expertise than through lower price. That means your broad-based goal should be building a sense of trust with current and future clients by proving your competency, offering superior customer service and positioning yourself as a partner who s on their side not just an impartial vendor. Ask for testimonials and references from clients who have formed positive opinions about your service. cloud.mostad.com 5

6 3 ANSWER THEIR QUESTIONS THROUGH CONTENT If you aren t already investing in a content marketing strategy aimed at boosting your credibility, you may be losing business to competitors who are. How does content marketing turn prospects into clients? Once prospects sign up to receive your content, you work to build their trust by providing valuable, industry-specific information that helps them solve some of their tax and accounting problems at no charge while eliminating the need for them to conduct their own research. Providing free expert content like blogs, newsletters, s, videos and social media posts that inform on key issues is a win-win. Not only do the recipients become more knowledgeable about what you re trying to accomplish on their behalf, but you reinforce your status as an expert in your field a transparent source of information and insight. By consistently offering up content that answers their questions, you ll help them view you as a valuable ally instead of just another company vying for their money. When forming your strategy, make sure you include a robust social media presence designed to engage viewers, draw followers and generate leads from those you ve never met. Providing industry specific information to prospects solidifies your position as a trusted advisor. cloud.mostad.com 6

7 4 REVVING UP REFERRALS: DOES EVERYBODY KNOW YOUR NAME? In addition to asking your known customers to pass on your name to others, you ll want to think about secondary sources of referrals. Here are a few ways to do that: Foster relationships and exchange stacks of business cards with noncompeting firms that cater to small businesses such as IT providers, marketing services, attorneys or bankers. Don t rule out similar relationships with other tax and accounting firms with different target markets than yours. Join and network with members of other professional, trade and alumni groups whose members might refer you. Help other business owners even when such assistance doesn t profit you directly. They ll remember your expertise and capabilities when they know someone who needs your services. Join a professional networking group to gain referrals. cloud.mostad.com 7

8 5 NOW: ARE YOU DIGITALLY READY FOR THOSE REFERRALS? Once you get a new referral, what s the first thing they ll do? Check you out online. Make sure you re prepared to welcome and manage the additional leads via your website, social media sites and other online sources. These days, clients use online touch points interchangeably with the expectation each one will be appealing, well-organized and easy to navigate. expertise and credibility. The worst websites and social media sites appear to have little thought or planning behind them, while the best anticipate what their potential clients will be seeking and tailor themselves toward those audiences. Your overall goal is to foster further interest in your firm. It s crucial to form well-constructed, professional, user-friendly sites that showcase your services, Are your website and social media pages optimized to welcome and guide prospects? cloud.mostad.com 8

9 Ask yourself the following questions about the quality of your online presence, especially your website: Do you have a website? Is it attractive, engaging, well-designed, easy to navigate and comprehensive? Does everything align with your brand? Do you clearly explain the services you provide, and to whom you cater? Are you answering the immediate questions clients are likely to have? Are your answers likely to inspire confidence in new clients? Are you offering fresh, free content that keeps clients and prospective clients up to date on economic, regulatory and industry news without boring them? Or are you trying to tell them what they already know? Do you feature real client testimonials that establish your credibility? (Note that some companies also list client rosters on their websites to display their range.) Do you regularly distribute content through different marketing channels to maximize its impact, or do you only post intermittently? Is your firm featured in local listings such as Google My Business, Facebook, Yelp or Yellow Pages directories? Do you regularly distribute content through different marketing channels to maximize its impact, or do you only post intermittently? cloud.mostad.com 9

10 6 NEED A HELPING HAND MANAGING REFERRALS? Fortunately, some of the latest software makes it much simpler for you to track, manage and convert your incoming referrals, eliminating much of the guesswork when it comes to your referral campaign. At Mostad Marketing Cloud, our platforms automatically and efficiently deliver expert content across multiple online channels so you can build trust and credibility with existing clients while also helping to convert referrals into clients. The result? Better client engagement, higher conversions, improved loyalty and ultimately, boosted revenue for your firm. Taking full advantage of your capacity for referrals is a key element in growing your tax or accounting firm. Make sure you re doing everything you can to capitalize on the powerful influence wielded by wordof-mouth. Call us for more details at or request a free demo at cloud.mostad.com. Expert content across multiple channels increases client engagement and referrals. cloud.mostad.com 10

11 Marketing for Accountants Get started now at cloud.mostad.com Contact Devon at or