But it doesn\u2019t have to be that way. In fact, many accounting firms in our study are growing 20% or more, year after year. We refer to these fast growing accounting firms as “High Growth” firms and each year we conduct research<\/a> to understand how they achieve success.<\/span><\/p>\n What have we learned? The primary difference between High Growth firms and their slower growing peers lies in their marketing. Year after year we have seen a trend that High Growth firms invest more in marketing\u2014both time and dollars\u2014and as a result they are able to achieve extraordinary growth rates. This finding was validated in another research study conducted with the Association for Accounting Marketing<\/a> where we discovered that High Growth firms spend twice as much on marketing.<\/span><\/p>\n Specifically the High Growth firms focus on differentiation as a top marketing priority, create educational content to build visibility around their subject-matter experts, and strike the right balance between traditional and digital channels. <\/span>In short, the marketing decisions you make can dramatically affect the growth and profitability of your firm.<\/span><\/p>\n Wouldn\u2019t you like to know what High Growth accounting firms do differently? Are there marketing techniques that are proven to work better than others? And can a business like yours emulate the best performing CPA firms? (Yes, it can.)<\/span><\/p>\n We\u2019ve written this guide to provide answers to these and many other questions.<\/span><\/p>\n Marketing is often confused with sales and business development. Sales is the process of understanding a specific prospect\u2019s needs, offering a specific set of services to address them and convincing the prospect to purchase the services. Marketing, on the other hand, is the process of understanding a market\u2019s needs, tailoring your offerings to those needs, generating awareness for a firm\u2019s services and encouraging qualified prospects to reach out and request more information.<\/p>\n Or more simply, marketing is about generating qualified opportunities. Sales is about turning those opportunities into clients.<\/p>\n Unfortunately, a lot of CPA marketing falls far short of its potential. We begin this guide by exploring why this happens.<\/p>\n Then we\u2019ll explain how you can get the most from your accounting marketing investment by taking a research-based approach to growing your CPA firm. Last, we\u2019ll describe the skill sets you need to succeed.<\/p>\n So let\u2019s get started!<\/p>\n 1. A Flawed Strategy<\/strong><\/p>\n Many accounting and CPA firms get marketing strategy all wrong.<\/span><\/p>\n Here\u2019s how it usually works. Late in the year, the firm corrals a group of partners and senior executives (the more, the merrier) into a large conference room to brainstorm marketing ideas, share experiences and try to agree on an approach for the coming year. At larger firms, a marketing director may also be invited to propose a marketing plan to the team.<\/span><\/p>\n The resulting strategies are usually a mishmash of gut instinct, political compromise and stale tactics. More of the same.<\/p>\n There\u2019s a better way. Delegate your firm\u2019s marketing strategy to a small team with authority to make decisions for the group. Conduct research<\/a> to find out what your target audience is looking for today (needs and preferences change). Build a differentiated brand<\/a> that gives buyers a reason to remember you. And deploy the tactics that are proven to generate real results<\/a>.<\/p>\n 2. The Wrong Skills<\/strong><\/p>\n In other areas of your CPA practice, you understand it\u2019s important to have the right skillsets in place to deliver high-quality services. But when it comes to marketing accounting services, many firms lose sight of this fact.<\/span><\/p>\n Today, marketing requires a broad suite of skills, from writing and search engine optimization to social media and web analytics. Yet when making staffing decisions, many firms seek to minimize expenses rather than maximize the impact of their marketing. They may hire good people, but give them so many tasks that they cannot succeed. More often than not, however, firms simply don\u2019t understand what skill sets are required to execute a modern marketing strategy.<\/span><\/p>\n 3. Failure to Fully Execute<\/strong><\/p>\n Some firms are able to formulate a workable strategy, but they have trouble taking it to the finish line. Their investment is wasted because it is never fully implemented. An initial burst of enthusiasm quickly fades as novelty turns into work. For example, a firm plans a monthly webinar series, but once they produce the first webinar or two, interest fades and the initiative dies. We\u2019ve seen this happen with blogging and networking, too \u2014 in fact, any marketing task that requires sustained effort over time. It\u2019s far easier to put one\u2019s attention into paying client work, instead.<\/span><\/p>\n Sometimes these efforts are killed off intentionally. When a new technique fails to deliver quick results, it\u2019s easy for a firm to lose faith and return to \u201ctried and true\u201d tactics that at least work occasionally. Often they stop just as the technique was poised to take off.<\/span><\/p>\n Then there is the problem of oversight and accountability. While many firms require annual business development plans, they don\u2019t build in a mechanism to monitor their execution. Where there is no pressure to deliver, there will be few results.<\/span><\/p>\n 4. A Broken Funnel<\/strong><\/p>\n Every sales funnel contains three primary parts:<\/p>\n The trouble is, some firms don\u2019t connect all the pieces, or they leave out a key element. When this happens, prospects can\u2019t move efficiently through the funnel. They get stuck along the way, or they lose interest and leave the funnel entirely.<\/span><\/p>\n For example, a firm may focus on tactics that attract new prospects, but they provide no offers to take the relationship further. A firm may write blog posts that attract new readers. But they include no mechanism in the blog post to deepen engagement \u2014 no offers for additional content or relevant services. The potential new client is left to guess what to do next.<\/span><\/p>\n Every marketing tactic should have a place in the funnel \u2014 and each should provide a clear next step that takes the prospect a little deeper.<\/span><\/p>\n 5. Running While Blindfolded<\/strong><\/p>\n You wouldn\u2019t drive at night without headlights. You wouldn\u2019t run while blindfolded. Yet many accounting firms pay little or no attention to the performance of their marketing efforts. They have no tangible evidence of what works and what doesn\u2019t. These firms are living dangerously.<\/span><\/p>\n Our research shows that High Growth firms monitor more metrics than their low-growth peers. It\u2019s not hard to understand why this gives them an advantage: they have the data to make adjustments to their campaigns. These firms also conduct more research on their target audiences, so they have a clearer understanding of what motivates their buyers.<\/span><\/p>\n By contrast, firms that rely on anecdotal evidence or gut feelings are far more likely to spend money on tactics that bear little fruit. And they are more likely to spend valuable resources chasing the wrong prospects with the wrong message.<\/span><\/p>\n The first thing you need to do is find out what marketing techniques high-performing CPA firms are using today. Fortunately, each year the Hinge Research Institute conducts a <\/span>High Growth Study<\/span><\/a> to find out what techniques are proven to work. You can use this list to retool your own approach to marketing.<\/span><\/p>\n Next you need to perform research on your target audience. After working with hundreds of professional service clients, we\u2019ve learned that firms rarely have a true understanding of their marketplace. To find out what\u2019s really on their minds, hire an impartial third party to interview a sample of clients and prospects. Chances are, at least a few of the findings will surprise you.<\/span><\/p>\n But science doesn\u2019t end with research. In the implementation of your marketing program, you can take a more rigorous approach, too. Set up scientific experiments \u2014 with a hypothesis and control group \u2014 to determine what tactics work best with your audience. On individual web pages and email campaigns, you can implement A\/B tests to determine which messages, images, colors or layouts produce the best outcomes. Repeat these tests over time, and you will incrementally optimize your marketing performance.<\/span><\/p>\n Finally, use the analytics that come with your digital tools to track your results in real time. This way, you can make course adjustments along the way. Firms that track multiple metrics have a relatively high level of control over their marketing program. Many metrics come baked into your tools, while others (such as conversion goals, link tracking, UTM codes and filters in Google Analytics) need to be set up in advance. If you don\u2019t track your progress, you\u2019ll be little better off than Mr. Wanamaker.<\/span><\/p>\n But there\u2019s just one problem. Expertise is often invisible.<\/span><\/p>\n That\u2019s why the fastest growing firms go to great lengths to improve the visibility of their expertise. They adopt specific strategies that raise the profile of their expertise at the firm, practice and individual levels.<\/span><\/p>\n These strategies include writing and speaking on topics of intense interest to their clients. And they involve a variety of promotional techniques that expose their expertise to audiences beyond their immediate locale, from search engine optimization to social media to partner marketing.<\/span><\/p>\n Below are eight marketing skills that are often missing from accounting firm marketing departments:<\/span><\/p>\n 1. Research<\/strong> What you learn will make the rest of your marketing more relevant and effective.<\/p>\n Download the Professional Services Guide to Research<\/a><\/p>\n 2. Strategy<\/strong><\/p>\n Behind every great strategy is a clear understanding of four things: 1) the marketplace, 2) your audience(s), 3) your competition and 4) your firm. Once you have a grasp of each, you can design a marketing strategy that delivers compelling messages to the right people through the right channels.<\/span><\/p>\n The best CPA firm strategies are very specific and include a detailed execution plan, including tactics, schedules and assignments. In short, they are designed to be implemented.<\/span><\/p>\n What kind of strategy do you need? That depends on your goals. Here are the four most common types:<\/span><\/p>\n 3. Branding<\/strong> Depending on your situation you may need to take your firm through the entire program or just parts of it.<\/p>\nWhat Is Accounting Marketing?<\/span><\/h4>\n
\nAccounting marketing is evolving from a geographically limited, relationship-driven discipline to a multifaceted, expertise-based strategy that leverages technology and scientific techniques to target specific audiences across a wide area. This new approach can have a major impact on a firm\u2019s reputation, visibility, new client acquisition, service offerings, pricing, client retention and recruiting.<\/span><\/p>\n![\"\"](\"\/wp-content\/uploads\/2017\/04\/calculator_tape_2-254x300.png\")
\n5 Reasons Accounting Marketing Fails<\/span><\/h4>\n
\nSadly, many accounting firms still do a comparatively poor job of marketing. I<\/span>n our work with accounting firms we repeatedly encounter five common patterns that work against their success.<\/span><\/p>\n![\"\"](\"\/wp-content\/uploads\/2017\/04\/callout1_7.png\")
So what\u2019s the problem? For one thing, it\u2019s very difficult for a large group of people to reach a consensus. There are just too many opinions. Also, big groups are resistant to change, so next year\u2019s plan will look a lot like this year\u2019s. Even a seasoned marketing director will struggle to turn this ship. And because most accounting firms are run by accountants, they tend to be conservative about spending, shying away from new, unfamiliar marketing investments.<\/span><\/p>\n\n
![\"Modern](\"\/wp-content\/uploads\/2017\/04\/modern-marketing-funnel.png\")
\nTake a Scientific Approach to Accounting Marketing<\/span><\/h4>\n
\nJohn Wanamaker famously said, \u201cHalf the money I spend on advertising is wasted; the trouble is, I don\u2019t know which half.\u201d Since the iconic retailer\u2019s death in 1922, advertisers and marketers have struggled with exactly the same challenge: it can be devilishly difficult to tell where to invest your limited marketing dollars.<\/span><\/p>\n![\"\"](\"\/wp-content\/uploads\/2017\/04\/callout2_2.png\")
But in the past few years, all that has changed \u2014 at least in the digital marketing arena. Today, it\u2019s possible to get a fairly accurate picture of what works and what doesn\u2019t. But accessing these insights takes diligence and a more scientific way of thinking about marketing accounting services.<\/span><\/p>\nThe Importance of Visible Expertise<\/span><\/h4>\n
\nWhat\u2019s a buyer\u2019s single most important criterion when selecting a firm? According to our research, relevant experience and subject matter expertise is the clear winner. In fact, expertise tips the scale in favor of a firm in 3 out of 4 cases. In addition, expertise is cited as the factor most likely to generate referrals \u2014 it\u2019s even more powerful than client referrals!<\/span><\/p>\nKey Skill Sets for Successful Accounting Marketing<\/span><\/h4>\n
\nIt takes an integrated team to build a successful modern marketing program. Many firms are already accomplished traditional marketers, but success today requires additional skillsets attuned to today’s increasingly digital marketplace. You can build this team in-house or you can source it to outside experts. Either way, they will need to work in concert with your leadership and subject matter experts to establish a productive rhythm.<\/span><\/p>\n
\nResearch requires a range of specialized skills, including survey design, interview skills and data analysis. It\u2019s invaluable for uncovering the opportunities that lie hidden in the marketplace. Here are some common <\/span>types of market research<\/span><\/a> that successful firms use to sharpen their competitive advantage:<\/span><\/p>\n\n
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\nBranding is an opportunity to differentiate your firm \u2014 and many accounting firms miss it completely. <\/span>In fact, differentiation is the top marketing priority of high-growth firms. <\/span>A full branding program consists of three basic components (though different branding agencies might break them down differently):<\/span><\/p>\n\n
![\"\"](\"\/wp-content\/uploads\/2017\/04\/callout3_1.png\")
In a world of cookie-cutter brands, design offers a tremendous opportunity to stick your neck out and create a differentiated look. (Is this any riskier, after all, than looking like a carbon copy of your competitors?) And when well executed, design can create an impression of authority and credibility.<\/p>\n![\"\"](\"\/wp-content\/uploads\/2017\/04\/a-clapper-board_1-297x300.png\")
We\u2019re seeing video being used by accounting firms in a lot of different ways. It\u2019s a great way to capture clients\u2019 experiences \u2014 what\u2019s more powerful than watching a flesh-and-blood client praise your firm? Video is an ideal medium to introduce your firm, as well. In a single, well-produced overview video you can combine client testimonials, interviews with your principals and shots of your team in action.<\/p>\n