Any advice on how to convert these leads?

Any advice on how to convert these leads?

Didn't find your answer?

I'm pretty new to having my own practice - I started in October.  Before this I worked in industry so please excuse any naivety on my part.

Clearly as a start up practice I'm keen to pick up clients ASAP.  The biggest problem is finding prospects, but having found them the second biggest problem comes when prospects are happy to move to me, but not yet.  Common issues are (especially at this time of year) that prospects who pay monthly have pretty much paid for a full year with their existing accountant so would prefer them to produce their year end, tax return, etc.  This is annoying but understandable. 

The double whammy is that the prospects won't tell their existing accountant they are moving (or appoint me) until the year end work is actually delivered.  In some cases many months later, during which time they've been paying the monthly DD towards the next year.  And so the vicious circle continues!  I understand why prospects do this (they are worried that their accounts/tax return/whatever will immediately go to the bottom of the list of priorities), but I need to find a way to persuade them the sign up with me as soon as the year end has passed and before the previous year end work is delivered.

How do people deal with this scenario and get prospects to sign on the dotted line?

Thanks in advance

Replies (23)

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By Bob Harper
14th Mar 2012 13:24

Closing or opening skills

@Chris - there are a number of different ways to deal with this but it's a bit like a client asking how to get a trial balance to balance. The chances are there is something fundamentally wrong and it's a case of addressing that rather than look for a quick fix.

So, I'd recommend you explore some high quality sales training/coaching starting with reading SPIN selling.

However, here is one technique which may help you move a client through/past a concern/objection.

Let's say a client is moving to you because their current accountant doesn't give them enough proactive advice and you identified X, Y and Z problems. These could be the client paying too much tax, lack of profitability and tight cashflow - all of which you can help them improve.

What you can do is ask the client how important these issues are compared to the standing order concern/objection. Just make sure you validate the concern/objection as well.

Something like:

"I understand you are worried about telling your old accountant you have changed. But, do you feel you should stop us working together and sorting out X, Y Z?" 

This will get the client to think. And, if the implications of X, Y and Z issues are significant they will probably move. If not they won't.

Question - are you finding X, Y and Z issues and exploring the implications as part of your sale meetings? Most sales people don't explore the implications and have problems at the end.

In summary, the answer to having a better closing rate is being good at opening clients up.

Bob Harper

Portfolio Marketing

Co-Founder Crunchers Accounting Franchise

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By ireallyshouldknowthisbut
14th Mar 2012 14:21

.

What you will find is people do come back, make a point of finding out when their year end is and contacting them at that point...many will have changed their mind, its a fact of life.  You might have people come back 6 months, 12 months or even 2 years later (especially back taxes quotes)

Also ask to see the contracts they are on, many will allow a repayment of the fees if paid monthly in advance, it might not all be lost.  A lot of people are of course just checking to see if the fees that pay are about right, so dont expect to win 'em all!

I find however that most people are NOT on monthly fees, you may have just hit a few in a row that are.

More widely its very early days indeed. I find the best way to 'sell' is not to avertly do so.  ie dont ever sound desperate like our old friend Bob does on here as you people can smell it a mile off and will discount everything you say, even if what you say may well be valid.  I used to do quite a long chat with prospects (hour plus) which if you are not busy gives you heaps of time to demonstrate your skills, after which I would send out a quote and contract.  In the old days I would then send a couple of emails and phone up to chase the lead, not only to get it, but also to work out why I didn't. This system was partly formed by losing early on a big client that I shook hands on (back when I did face to face meetings for prospects, no chance now) and I waited, and waited and waited. And then I found out I lost it because.........I didn't get in contact a few days later and he thought I wasn't interested. And there was me trying hard not to look desperate!

I hope something in there helps.

 

 

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By MarionMorrison
14th Mar 2012 14:23

To address your point Chris, you just need to talk to them more.  I do understand why one wouldn't tell an outgoing accountant, "just do this set and I'm off" because it would have an effect on the possible fees/quality deployed by the old accountant.  If you know a client is off it removes downward fee pressure because there's nothing to be gained.

What you can do is keep in touch and offer to sit down with them when their accounts are prepared to talk them through and interpret the figures for them because that is exactly the time they may get sucked into starting a fresh DD for the next year's accounts.  Just chat about the dates this event is likely, send them newsletters/whatever and treat them as if they were full-strength clients in the meantime

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By Bob Harper
14th Mar 2012 15:17

Desperate

@ireallyshouldknowthisbut - the problem for you could be that it's not how long you talk but what you say. And, the only think I am desperate for is the profession to change, which I think I should see in my lifetime if the proposed changes from the EU, OTS etc go through.

@Marion - no, Chris probably needs to listen more and ask better questions.

Bob Harper

Accountancy Franchise

 

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By ireallyshouldknowthisbut
14th Mar 2012 16:12

.

@bob, as I look at your cheesy picture I am somewhat amused that you think that I had a problem with sales! 

 

 

 

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By Bob Harper
14th Mar 2012 16:36

Had or have?

@ireallyshouldknowthisbut - I am also amused when I here people lose sales and the prospects say things like "you didn't get in contact straight away" because it's easier than telling the truth. 

It seems from your post that you were more successful in sales when you don't show you face, like here. Could it be that you are ugly?

 

Bob Harper

Crunchers Accountants

 

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Replying to fawltybasil2575:
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By blok
14th Mar 2012 16:59

.

Bob Harper wrote:

Could it be that you are ugly?

 

Bob Harper

 

 BRILLIANT!

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By Malcolm McFarlin
14th Mar 2012 16:48

Target start-ups

Chris

Why don't you try and target start up businesses who may not have an accountant. Business Link often hold seminars for new businesses -maybe worth going along on the basis that you are a new business. Your local free trade magazines that seem to appear on a regular basis -may be worth a phone call or mail shot.

There are many new businesses starting up who will be in dire need of some advice.

Malcolm McFarlin.

 

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By Moonbeam
14th Mar 2012 17:12

Keeping in touch

I kept in touch with one prospect for several months while his other contract came to an end, and I think the odd email with a generic bit of tax advice whilst you're waiting for them to come alongside will win over quite a few that might have walked away. Most prospects will be amazed at the interest you're taking in them prior to sign up - just make sure you keep it up afterwards!

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By ireallyshouldknowthisbut
14th Mar 2012 19:00

.

Genuinely LOL @ bob/blok. 

it does make me wonder sometimes if Bob is actually a very elaborate hoax rather than a real person. If he didn't exist someone would have to make him up.

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By Bob Harper
14th Mar 2012 19:26

Genuine

@ireallyshouldknowthisbut - glad that made your smile, I also wonder if some accountants are for real.

Bob Harper

Accountancy Franchise

 

 

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By ShirleyM
14th Mar 2012 20:14

@Bob

"I also wonder if some accountants are for real."

I think that about a lot of the posters on here. I think quite a few posts are for the amusement of the poster and just pretend to be real questions by 'new' members.

Still, it gives us something to giggle about (if not real) and it does wonders for my confidence (if real) as it means that some accountants out there know even less than I do!

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By ChrisScullard
14th Mar 2012 20:31

For those who made serious responses - thanks.

For those who have been arguing about who is ugly and who isn't - please retire back to the playground and quit hijacking my thread!!!

One comment was about approaching start ups, which is something I am actively trying to do.  I get data of all new company formations in the area, which is great and mailshots go out to them.  However I find it virtually impossible to find phone numbers to follow these up - I can't believe the number of start up businesses that I can't find on Google!!  Also any sole trader start ups are also missed.

Anyone know of where I can obtain this data?

Thanks in advance

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By Lancsboy2
14th Mar 2012 20:55

some worrying Qs on aweb

shirley ... i agree.  i've often wondered about some of the questions on aweb ... i read somewhere that hmrc read aweb & it reinforces their views about the competence of some agents.  this is a great forum, and obviously there are often cases where a second opinion is worthwhile, but some questions seem to me to be so basic that its no wonder the poster is posting anonymously!

 

like you say, it makes me think .... actually, i must be pretty good at my job, technically! LOL

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By Moonbeam
14th Mar 2012 20:56

Startup data from Experian

Experian and Thomsons both provide lists of startups with phone nos etc, but they come at a price!

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By blok
14th Mar 2012 20:59

.

Chris, Lighten up.  Everyone knows Bob is a decent guy, he just causes controversy a lot of the time but we love him for that really:)

Good luck with your new business by the way...

Have you considered a franchise?  I know someone that may help with that!

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Man of Kent
By Kent accountant
15th Mar 2012 01:06

Don't close too soon

@ChrisScullard

I lost prospects I really should have converted early on because I did appear desperate and tried to close the deal too soon.

Now I try to appear interested and keen, if a prospect doesn't convert as quickly as I would hope I try not to pressurise but do follow up on a fairly regular basis - every couple of weeks e-mail or phone.

I've found that works for me, one client worth £20k pa took almost a year to convert.So its well worth the effort but its important to try and find the balance between pushy and not interested which works best for you and the potential client.

As for being ugly... I've found a blue/grey circle with my initials in the middle strikes a good balance...my photo may scare people off ;o)

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By Steve Holloway
15th Mar 2012 08:37

I just put my ....

pretty car on here!

I have always found softly softly to work well. I never buy from hungry salesmen as their appetite always ends up being inversely proportional to the quality of the end product. If you are friendly, competent and give the client a warm fuzzy feeling then you will close every time almost without exception.

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By justsotax
15th Mar 2012 11:43

Would just echo some of the comments above...

keep in contact with those prospects - go for a coffee, have a chat.....just try and pick up more info about them, and you will find opportunities to throw ideas into the pot (some tax planning, business development etc) - if your seen to be more interested in them than the guy looking after their accounts (who is getting paid) then they will move to you....sometimes it just takes time.

 

For new businesses networking events tend to be a good place  - BNI, business for breakfast to name but 2 (there are many, a mix of small, local, national).  ou do have a battle because there will often be established firms at these groups - but the small guys are more likely to feel comfortable dealking with a small firm - probably fee is lower too.  Just be interested in their business and they will come to you.

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By Cardigan
15th Mar 2012 16:03

Discount for standing orders already paid

I took on two clients that had paid 2 or 3 standing orders in advance after the annual accounts had been done. I gave them a discount for the first year which amounted to less than the standing order payments they had made. We split the difference, so to speak.

 

They are both now paying me by standing order and I haven't done a great deal of work with them yet, other than staying in touch, advising them on small issues etc.

For one client, I was charging a bit more than their previous accountant as I was providing a better service. I charged the other client the same as their previous accountant.

I weighed up the cost of getting a new client with the discount for the first year and I felt it was worth it. Both clients keep proper records and are easy to deal with.

However, another way of looking at it is that they are paying (roughly) the same monthly standing order payment to me as they were previously but the goalposts have changed. For example, if their year end is 31 December, they were previously paying the standing order from Jan to December each year. Now, I am taking the standing order from March to December for year 1. Realistically, I won't have the accounts prepared before February each year, so I will still have 12 months standing orders in the bank at that stage.

On another note, another reason that they might be reluctant to change is the "hassle factor." They might think it is a big deal. I explained the process to them and told them that they just change the standing order over to me, sign XYZ and that it is quite straight-forward, happens all the time etc.

But then again, I do look like a certain filmstar, so maybe that's why they changed over to me :)

Best of luck with everything.

 

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By Chris Smail
15th Mar 2012 17:05

It will take two years to get established as a general rule.

I always ask clients starting off on their own how they plan to eat for the first two years.

Clients do not come in overnight, well some do but not many. If you are broke now get some other part time work to fill your time, otherwise you will be desperate and take on loads of crappy clients who will cost you money in the long run

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By cfield
15th Mar 2012 18:54

People buy from people

One of the truer marketing phrases I've heard over the years, along with "You never get a second chance to make a first impression". If they like you, the battle is usually half won - then you just need to bide your time and wait for the right moment.

Re the standing order dilemma, one way round this might be to advise the prospect to tell his current accountant that they no longer wish to pay monthly for cash flow reasons, and that they'd rather pay when the work is actually done. After all, most firms are trying to manage their cash flow better these days, so very plausible. If the accountant refuses or objects, that's a good excuse to replace them anyway without having to go into any other issues.

Can't resist joining the Bob Harper debate, childish and infantile though it is. I actually enjoy reading Bob's posts sometimes, when I can understand what he's going on about that is. I think he should have kept his old pic of him on the beach. It always reminded me a bit of the final scene in that Michael Caine film - Get Carter.

Chris

 

 

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By Bob Harper
16th Mar 2012 09:48

My picture was from the Portfolio Marketing collateral (I did some private marketing consulting while I decided what to do with the Crunchers Franchise) but now I am 100% focussed on Crunchers I changed my picture. However, it may be a bit to corporate so I may change it again.

However, back to the point.

The OP can look at ways to avoid or deal with the situation or fundamentally address it. I'd recommend he fundamentally addresses it (not just to win more) but so that he wins better and easier.

Bob Harper

Accounting franchise

 

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