Knowing the future value of your business starts with knowing more about your existing clients and future ones than you think.
You might think you know what your “ideal” client looks like but chances are that this has changed in recent years and you might be missing out on golden opportunities.
We know that by setting quantitative and qualitative criteria detailing the “ideal” client, accountants can allocate their time and resources more effectively. But up to 45 per cent of accountants surveyed recently, admitted they did not segment their client base, according to Bstar’s The 2015 Accountants Research Report. This report states it’s the SME clients who have the business growth, improvement and succession needs making them “ideal” clients for advice services. But how can accountants go the extra mile to pinpoint how clients can be serviced in the best way possible?
Firms should give the client an experience and insight. A lot of people are talking about co-creating a new experience with the client. Without building a framework to segment clients and identify their needs, it’s hard to deliver beyond a basic, bland experience. Don’t just give clients a product off the shelf or something you want to sell them. Firms should understand that the client is going to want tailored experiences and they will want to participate in the services they’re going to be receiving.
Worryingly, there are accounting firms that have absolutely no idea what their ideal client looks like. This should be addressed as a primary consideration. Otherwise, how can you possibly build a successful marketing, business development and client engagement model?
Quality accounting firms are shifting their focus toward servicing clients that are genuinely seeking “advice” and “multiple services” through the one location or client contact. This maximses value for the client and the firm and is a great starting point to developing a more specific target client profile.
We work in partnership with accountants to do just that – to make sure that their client benefits from multiple services, including wealth management, finance, legal and other complimentary services. It can be that their clients are professionals or executives, business owners or retirees. Importantly, our starting point is to ask each of our accounting partners which profiles they aim to target and what “client needs” they are primarily addressing.
It’s also crucial to identify: Do you have the right mix of clients to fit within your growth plan? Once this is clarified it’s easier to identify what the ideal future client looks like and how best to build future value.
Simon Madder is managing director and chief executive at Prime Financial Group, a strategic investor with 10 accounting firm investments and over 30 wealth management JVs with accounting firms. Prime continues to build quality partnerships with accounting firms and has a deep heritage in accountancy, having been founded by accountants, for accountants. Prime manages over $1.0 billion in client assets for business owners and family groups.
