Busy Accountants and an unreliable reliance on referrals

As Accountex is just 2 weeks away I am into full on prep both for my contribution to the lunchtime panel session on Wednesday 15th May (about marketing by introvert accountants) and for my lunchtime keynote on Thursday 16th May: The Future demands different accountants to those of yesterday.

As there are five weeks between the April and May meetings of the Sole Practice Club, I offered members an extra AMA (Ask Mark Anything) session this week.

Our discussion addressed issues such as on how to write a decent disengagement letter, getting consensus from the team to 'sack' a disagreeable client, getting support from senior client family members when younger members act unreasonably and being clear as to what clients can expect from you and what they need to do too. A sort of two-way client service charter.

This is a sample of what subscribers to my Biz Dev Success Secrets for accountants get by email every week. Now is a good time for you to register for your own copy >>>>

This week's practical business development tips

Inspired by conversations with my mentoring clients about referrals.

1 - Relying on referrals: Make it easier for the people you are relying on to refer clients to you. That means helping them to know what your ideal client looks like and what work you most like doing. Otherwise you risk continuing to waste time with the wrong type of referrals (too small, too simple or too fee resistant).

2 - How's business? Next time someone asks you this question, think before you answer. Don't just say 'fine'. Plan your reply along the lines of: “Quite good thanks, as so many of our clients recommend people they know to us. We work hard to encourage this and it seems to be working as most of our new clients come from referrals.” (Only if this is true of course!)

3 - Be more specific: You’ll get better results from your networking if you stop using the word 'anyone' when asking for referrals. Better than implying you could help ‘anyone’ who needs a new accountant, be more specific and, in so doing, make it easier for your contacts to recognise who, of the people they know, would really be decent introductions for you.

The myth of the Happy Client - Why "good enough" isn't good enough to get the referrals you want

Classic. Talking with a partner in a top 50 firm of accountants, I asked how they get most of their new clients. It was no surprise he answered ‘referrals’. Many accountants and lawyers, ASSUME that they secure most of their new work through word of mouth referrals.

But, this is rarely the full story even though it implies that your clients are making positive comments about you, and that’s great.

This is all a bit 'hit and miss' and is often merely an assumption because there is no accurate record of what led new clients to the firm.

Clients may indeed recommend you if they’re particularly happy. But, in the same way, any unhappy clients will be quick to share their negative views even if they don’t express their disappointment to your face.

Presumably you rarely hear of such complaints so you assume all is well and that plenty of referrals should be flowing. But is that the case actually?

Try this simple test. How many referrals are you aware of in the last year and how does this number compare with the number of clients you have?

Whenever I ask accountants I mentor to do this it becomes clear that only a minority of clients are referring business to them.

Is it safe to assume that the majority of their clients are all happy – and not referring business, or might some of them be unhappy? Unhappy and at risk of being tempted away by another accountant.

I’ve heard a large number of business owners talking about their accountants in recent years and it’s fair to categorise those views as good, bad or, most often, indifferent.

Let’s explore these different views and the wider lessons we can learn....

Continue reading >>>>

Tough questions

How many of your clients are NOT referring new clients to you, as compared with those that are? Do you know why not?

I'm here to help and support you with my caring and pragmatic approach - debunking the hype and resolving misconceptions. Just pick one of the links below...

Regards

Mark Lee FCA

Mentor, debunker and speaker

PS: When you're ready, here are some ways we can work together:

1. Let's talk for a few minutes so you can decide if you want to take it further >>>

2. A one-off 30 minute 1-2-1 Linkedin clinic >>>

3. A one-off focused strategy call/zoom >>>

4. Regular 1-2-1 mentoring zoom calls >>>

5. Check out how you could benefit from the Sole Practice Club >>>

PPS: Remember. I only share some of my weekly biz dev tips on Linkedin. If you'd like to receive yours weekly please let me know here >>>>

I'm Mark and sole practitioner accountants turn to me for strategic insights, advice and support.

Membership of The Sole Practice Club gives you priority access and the benefit of learning from other sole practitioners who share many of the same issues, challenges and concerns. Others prefer 1-2-1 mentoring support.

I also Chair the Tax Advice Network, the UK’s largest network of independent tax advisers.

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