Converting leads into paying clients
It takes the right offer at the right time to lure a prospect into becoming a paying client, explains multi-millionaire entrepreneur Jonathan Jay.
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Nurture and get rid of free meetings?
As this is about converting Website visitors and I agree with Jonathan Jay. Offer “resources” on your Website in return for the clients contact details so you can implement an email lead nurturing programme.
This methodology may require patience because it slows down the sales process but it speeds up the sale because the time will be right. It also eliminates price pressure (perhaps more than referrals) because at the time the prospect contacts you they trust you and have already received value.
With this is mind, is there an argument to withdraw free meetings as part of the Inbound Marketing Startegy? If the marketing is good prospects will buy a small starter service. A paid first meeting has more perceived value and gets rid of time wasters.
I have a “Mentor Sessions” at £75 each or a “Marketing Audit” at £250 which I call my starter products. I give a guarantee that I will refund the fee if the client is not happy. I figure that if an accountant is serious about marketing they will not have a problem with a small fee. If they are not serious then I don’t want to spend time with them. If they are serious but don’t trust me enough then they can read my blog and register for free resources. If they don’t get value from them that then they probably won’t like what I have to offer.
What could you do as a starter service?
How about a £150 “Telephone Tax Review” where you guarantee to find at least one way to save the client money. Or, for firms that have a wide range of services like Steve’s firms in AVN how about a “Personal On-Track Review” for £250 where you provide a detailed personal cashflow to ensure the client has an exit review.
On your Website educate clients about the Pension Crisis as per the Adair report in 2004. We (and your clients) are 25 years away from a 30% drop in real terms of retirement income. But, your clients have in their hands a financial instrument (their business) which can save them.
The great news is that you (if you invest in developing your knowledge and service range) can help them keep and make more money so they don't get caught in this trap. Is that compelling enough for clients in your area?
Bob
Retirement planning
"On your Website educate clients about the Pension Crisis as per the Adair report in 2004. We (and your clients) are 25 years away from a 30% drop in real terms of retirement income. But, your clients have in their hands a financial instrument (their business) which can save them.
The great news is that you (if you invest in developing your knowledge and service range) can help them keep and make more money so they don't get caught in this trap. Is that compelling enough for clients in your area?"
Bob
The simple answer is no. The majority of clients will not be interested in what's happening in 25 years time, the current climate dictates that their attention is primarily shorter term.
If firms pay more attention to assisiting with credit management, cashflow, pro active tax planning and advisory services then this would be much more in line with the wants and needs of the clients they serve.
Jason
Seahorse (UK) Ltd - For accountants and bookkeepers
Strategy
@Jason...the current economic conditions are dominating some clients minds and perhaps some need to put their long-term planning on hold because they can not afford to save at the moment. But, they will only know what impact this will have and what they need to do to make it up if they get advice.
If you are you're right (which I think you are) it doesn't mean I am wrong because what is the point of going for the majority when everyone else is? However, things are changing all the time and I do believe the average business owner is becoming more sophisticated all the time and therefore and open to new services and new ways of working.
Let's assume 80% of business owners will never be interested in exit planning. That leaves 20% who are and an opportunity for some accountants to support them with a wider range of services which are not even being considered by the majority of firms.
Based on their being 4.7 million businesses in the UK and say 10% of the 20,000 accountants being really proactive with planning, that is 470 clients per firm. That's big enough for most bearing in mind the average fee would be much higher than compliance service plus a bit of ad-hoc advice. One leading UK practice which has adopted an added value strategy works on the basis of no more than 10 clients per "partner" and have a minimum fee of £6,000.
I do accept that there are not be enough of clients with the right mentality for every firm to build a strategy on. This is why there is an opportunity now for firms to establish themselves in their local market as the Added Value firm. The ones that don't could be left doing accounts and tax returns for a large number of clients where the margins continue to get squeezed with price pressure and higher wages.
Perhaps it comes down to the level of intimacy the accountant has with the client? Maybe it is the quality of the accountant's sales, marketing and communication because it’s about getting clients to want services they need. The trouble for accountants is that they are used to selling clients services they don’t want!
Unfortunately, accountants are not trained in consultative selling so when they approach their first few clients with new services and get a "no" they assume all clients don't want them. That is why I have developed Selling-BUY-Numbers; a sales system specifically for accountants looking to add value to client relationships.
I do agree with you that assisting clients with credit management, cashflow and pro-active tax planning is a good place for accountants to start. This can produce quick wins which can lead to longer-term focus.
Bob
Bob
I don't disagree with much of that now you have elaborated - I would say the 80/20 estimate is a bit optimistic but even at 90/10 that still leaves 10% of clients interested in, grateful for and willing to pay good money for these type of services, and generating like minded excellent referrals. At DFL we introduced this service last year and it has proved very successful. Not enough to build a strategy around though just a very nice little additional service that is hugely appreciated by ones that take it up. The majority can be eductated to the hilt but (perhaps understandably) they are only interested in the here and now at present.
Regards, Jason
Seahorse (UK) Ltd - For accountants and bookkeepers
Here is how some really successful firms do it
For accountants, MARKETING is all about given people a compelling reason to spend some TIME meeting you (since you will practically never sign up a new client without meeting them).
And SELLING is about giving them a compelling reason to spend some MONEY actually working with you.
In both cases the key word is “compelling”.
An “Initial consultation free” is rarely compelling. Neither is a message that essentially means “we are nice people, have been in business a long time and do everything you would expect from a good accountant”
So the key question you as a practitioner need to ask yourself is this… what compelling reasons do you give to make it worth while for prospects to give you their time and money?
One compelling reason to spend some time meeting you, that fits with Jonathan Jay’s advice, and is working really well for many accountants at the moment is…
“As a thank you for meeting us, we will have carried out a detailed diagnostic review of your business and its tax position specifically to search for new ways to put tens and perhaps even hundreds of thousands of pounds of extra cash in your business and personal bank accounts. And we will explain our research findings to you in Plain English at our meeting – and present them in a detailed report so you can clearly see how different we are to other accountants”
Quite often that sort of diagnostic review will be so impressive that the prospect needs no further encouragement to sign up as a client. But where they do…
The related compelling reason to spend some money working with you is…
“Every year we will carry out a further detailed diagnostic review of your business and its tax position specifically to search for further ways to put tens and perhaps even hundreds of thousands of pounds of extra cash in your business and personal bank accounts. And every year we will explain our research findings in Plain English.”
Imagine how much more willing a prospect will be to spend some time and money with you when you give them that kind of compelling reason to do so.
STEVE
PS If you want some further guidance notes and case studies of how other firms are profiting from this sort of approach, so that you can do the same, send me your contact details on steve@avn.co.uk and I will gladly send them to you