Greg Hayes examines how to offer a whole lot more to the client-accountant relationship.
Many accountants cringe at the word 'sell'. They're not comfortable with the idea of having to sell their services and see it as something other than what a professional does. Added to this is the current ethical debate about accounting firms providing multiple services to clients, in particular where they may act as the auditor for the business. So let's take a look at the whole issue.
The ethical considerations need to be on top of the list. These apply in particular where you are offering audit services. Many SMEs don't undertake audits of their business, so this may lessen the issue. But, fundamentally the principle is the same?if the provision of multiple services may cause a conflict or compromise your independence, then you need to avoid this situation.
Having dealt with this up front, let's move on. Many accounting firms deliver a broad range of services and value can be added to the client relationship and the client's business by accessing these services. You may be acting for the client in taxation matters, but they could also benefit from your management consulting, financial management and business advisory services. In most cases, the mix of these services won't present a conflict of interest.
Most accountants don't regard themselves as good marketers. And in most cases they're right. It's not a part of our natural skill set. We work from the other side of the brain. So if acquisition of business is a challenge, it only makes good sense to maximise the value of the relationship. Look at it too from the client's perspective. Time and time again small businesses are searching for more value from their relationship with their accountant. They have greater need than simply the preparation of a tax return but they don't know what is on offer.
Professional care of your client means meeting their needs. And if you have the skill range within your firm to offer multiple services, then it only makes sense to do so. Many clients are looking for a one-stop-shop approach.
What are the benefits of cross-selling?
There are many, including:
Strengthening the relationship with your clients by broadening the range of services they utilise
Lifting practice profitability by making clients aware of the full range of services available to them
Allowing you to leverage different skill sets within your firm and open up a mix of career paths for your team
Cross-selling services to existing clients is the most effective way of increasing your fee base. This work will tend to be more profitable as clients perceive value in what you are doing. Many professionals overlook the fact that selling additional services to your existing client base is far easier than selling to new clients. Best of all it helps your client build a better business.
How to cross sell services
Do a stocktake of all the services offered and the specialist skills of all the team members within the firm. Ensure there is adequate marketing material available. Prepare an easy reference guide for team members to use when meeting with clients. Make sure this material demonstrates the value of the service to the client.
Prepare a table on what services are complementary and therefore suitable for cross-selling. For example, if completing a tax return for a high net worth individual, then there might be an opportunity to cross sell financial planning services. Communicate the firm's full range of services to clients at every opportunity. This includes newsletters, Internet, client networking evenings and client mail-outs.
Undertake training so team members understand all of the services offered and the need to make clients aware of them. Deal with the ethical considerations up front. Understand the considerations and be prepared to decline work if there is a conflict. Monitor the results. Maintain a list of new work won from existing clients. Report the results of this list to the team on a monthly basis to show the effectiveness of cross-selling.
This article was written by Greg Hayes, Chairman of CPA Australia's small business centre of excellence and senior partner with accounting and business advisory firm Hayes Knight.
