The Secret to Accountancy Marketing: Turn More Clients Away
By Patrick McLoughlin – Accountancy Marketing
If you are struggling to build your practice the last thought in your mind will be turning potential clients away. One client’s money is as good as another’s right?
Unfortunately all clients are not equal. When you look at your most enjoyable and profitable client relationships you’ll usually find those clients share a lot in common. The same of course goes for your nightmare clients. I’ve talked through the warning signs to look out for in potential clients in a past blog. To find out more click on this link.
Accountancy Marketing – The Sole Practitioner Trap
The decisions you make, when you start off in practice, will shape your working relationships and earnings. The pressure is on to get fees in quickly and build a healthy income. The easiest clients to attract are those looking to reduce their fees. Your overheads are low so you can take a little off what they are currently paying and still get by.
This is where the trouble starts. If you’re chosen because you’re cheaper, not because of the value you bring, the dynamics are different. Your advice isn’t as valued and you’ll always be susceptible to losing out to an even cheaper alternative.
In terms of your income, then naturally your margins are lower when you’ve had to sharpen your pencil. Worse still, the lifetime value of your clients is reduced further as they stay with you for a shorter time, before moving to an even cheaper adviser.
All this means you have to run faster, win more new business and discount harder. This downward spiral in fees and client relationships, as you can’t put the time you want into discounted work, slowly saps your enthusiasm.
Build your practice with bricks not straw
Now compare that future to this: You have identified your key skills, experience and expertise. You have researched the type of clients that will benefit most from working with you. Your website, your referrers, all your new business efforts focus on solving the problems of your ideal clients.
This means you appeal to a far smaller market. But crucially rather than a lukewarm appeal to many, you are red hot to a few. It takes you longer to gain traction but your clients pay a premium for the special value you bring. Their lifetime value is far greater as they stay with you longer. Even your referrals are better quality as clients refer businesses owners similar to themselves.
Better still as you are charging a premium you have the time to produce quality work. In return your relationships are better and more profitable.