How do you get new clients?
Many accounting firms ignore marketing and rely only on referrals and word of mouth. While both are great sources of solid leads, you can’t really control them. This means that they are not the best foundation for your firm. Especially if you want to scale it.
Of course, not all accounting firms ignore marketing. But, most of them don’t think about it until one of the two things happen:
– They decide they want to scale and realize they don’t get enough referrals
– They lose a couple clients and realize they don’t have enough referrals to keep the same level of revenue.
However, even once they decide to start marketing, they still approach it all wrong.
Often, they start with questions like “how much marketing do I actually need to do or invest?”
The problem is, they think in vague categories and don’t set any marketing goals. And goals are a must-have if you want to scale your firm.
The best goals are ones that allow you to see and compare the results of your marketing efforts over time.
They will also define what marketing strategy and tools you’re going to use.
In fact, you must first understand how you’re going to reach your goals before you can think about the cost.
Here are some of the things that an accounting firm could track to measure their goals:
- Number of different client groups
- Average project value
- Average hourly rate (AHR) for different services (advisory AHR, compliance AHR, etc.)
- Number of new clients per month/quarter/year
- Number of leads generated
- Average per-client fee
- All these can be boosted with the right marketing campaign. Of course, in some cases, you’ll need to set priorities and choose one over the other.
By the way – if you already measure some of those metrics, and your revenue is between $1M and $5M, I’d like you to become my case study firm. This is only if you want to get to >$1M profit per partner while working less than 500 hours. To apply, simply reply to this post with “case study”.