I would love your feedback on this marketing idea for accountants

[andav]

Hi

I’m looking for feedback on a marketing service I’m thinking might work for accountants (note - my background is in online lead generation - I’m not new to the marketing game)

How this would work for accountants:

1) I compile a list of small local businesses (for simplicity sake say 100 businesses) the accountant would like to have as clients using the accountants parameters.

2) We create a simple PDF lead magnet resource or similar e.g. ‘5 ways to save business tax in 2014’

3) A landing page is created and the prospect can download the PDF after entering their email address

4) The client emails the prospect useful into 1-2 times a month - e.g. simple tax advice, what typically goes into an accountants newsletter etc. This would include suggestions to telephone the accountant if they are not happy with their current account etc.

The accountant could clearly telephone the prospect too if they wished.

Obviously the tricky part is getting the prospect to the landing page/website to optin to receive the report. Here is my idea.

I fax the prospect the link to the website once a week with a cover letter

I telephone the prospect 2-3 times per month to remind them to read the fax.

I send a direct mail letter once per week directing the prospecting to the website landing page.

Basically the prospect would be contacted a number of times per month via a mix of fax, phone and direct mail. I don’t know how many, but the above is the general idea.

Obviously I don’t know how many clients this would attract for the accountant. But looking at my figures I think (dangerous word!) it should generate a positive return

For doing the above marketing to 100 prospects per month, I would need to charge about £400, so £4,800 a year.

Whats the yearly value of a small business client to an accountant? I’ve read around - estimates are typically £500-£800 a year - I’ll use £600.

Whats the typical lifetime value of a client to an accountant? Trickier to answer - I really don’t know. But if the client remains in business and the accountant does acceptable work, I’d say 5 years. So estimated lifetime value of a new client is £600 * 5 years = £3,000.

I estimate the accountant would pretty much break even if I could attract only 1.5 new clients per year using the above method.

If the accountant can convert only 2 of the 100 prospects per year into clients they are in profit

I would love any general feedback from accountants on this matter. I know I’m making a lot of assumptions

Thanks

Paul

 

[David Griffiths]

If I was spending £4800 a year and getting 1.5 clients worth £900 a year, I'd soon lose interest. Before starting, probably.

And if somebody faxed me every week, wrote to me every week, and telephoned me 2-3 times per month just about a simple flyer with a huge 5 ways to save tax, I'd very soon get fed up with being on the receiving end of that. The second telephone conversation in the first month could end up being very short and to the point, even if we weren't on TPS.

 

[fisicx]

We create a simple PDF lead magnet resource or similar e.g. ‘5 ways to save business tax in 2014’....

Have you tried this thing called Google. I can get umpteen guides and whatever already with loads of useful hints and tips.

I fax the prospect the link to the website once a week with a cover letter

fax? You are really going FAX a link to a website?

Not an accountant but there are so many flaws in your idea. For started it's quite likely all the busiensses you contact will already have an accountant. They are not going to change just because you FAX them a link to a website and then annoy them with letters, emails and phone calls.

 

[andav]

Thanks for your quick feedback, I really appreciate it.

If I was spending £4800 a year and getting 1.5 clients worth £900 a year, I'd soon lose interest. Before starting, probably.

And if somebody faxed me every week, wrote to me every week, and telephoned me 2-3 times per month just about a simply flyer with a huge 5 ways to save tax, I'd very soon get fed up with being on the receiving end of that. The second telephone conversation in the first month could end up being very short and to the point, even if we weren't on TPS.

David regarding the £4800 a year and getting 1.5 clients worth £900 a year part - I was just trying to gauge what it would cost for the accountant to break even on the campaign.

I take your point about it being overkill /excessive in the follow up! Perhaps 1 phone call, 1 fax, 1 letter per month would be better. I was just playing with numbers. So it might cost the accountant say £250 a month instead, with break even 1 new client per year.

Have you tried this thing called Google. I can get umpteen guides and whatever already with loads of useful hints and tips.

fax? You are really going FAX a link to a website?

Not an accountant but there are so many flaws in your idea. For started it's quite likely all the busiensses you contact will already have an accountant. They are not going to change just because you FAX them a link to a website and then annoy them with letters, emails and phone calls.

Fiscix haha I like how passionate your reply was.

Regarding Google. Most businesses to my knowledge (and I’ve done some research) use local accounts in their town / city.

If you go to Google and look for specific accounting advice from accountants in your town/city without calling them - you might be surprised to see many accountants don’t include much advice on their website. Yes you’ll be able to find it nationally - but look for it locally and you’ll probably struggle.

Plus if you’ve got accounting queries - as many of us do at some stage throughout the year and the offer is there - you might well have a look.

Regarding the fax part - yes in answer. In my experience faxes - (unlike much cold email) generally get at least glanced at.

Further the fax and landing page will be personalised with the prospects name, city/town and other info about their business, so it obviously won’t be a mass fax that has gone out blindly.

And you're right - every business WILL already have an accountant. However some accountants are proactive and provide A LOT more value than others - same as most services.

So if you are not particularly fussed on your accountant and another firm that wants your business and seems to provide more value contacts you, I think many business owners would at least take a look at them.

 

[fisicx]

...but look for it locally and you’ll probably struggle.

BUt you aren't offereing anything local, all you are giving me is the top tips for 2014. And I can get this from loads of places.

...you might well have a look.
...generally get at least glanced at.
...I think many business owners would at least take a look at them.

And that's the rub. They may well glance but then chuck it in the bin and move on.

If I wanted a new accountant I'd use a search engine. If I wanted advice I'd search for it. Two different sets of results. I wouldn't need to have a local accountant publishing their hints and tips.

As David suggested the ROI just isn't there.

 

[andav]

BUt you aren't offereing anything local, all you are giving me is the top tips for 2014. And I can get this from loads of places.


And that's the rub. They may well glance but then chuck it in the bin and move on.

If I wanted a new accountant I'd use a search engine. If I wanted advice I'd search for it. Two different sets of results. I wouldn't need to have a local accountant publishing their hints and tips.

As David suggested the ROI just isn't there.

Regarding the top tips - thats just an idea. Accountants know better than me what information clients are interested in. I was only using the top tips as an example.

And do people only find accountants using search engines these days?

If people want advice yes most will search. However if they are looking for advice and a local firm has raised their hand and sent them information in the past weeks / months - its certainly possible they will look there.

Anyway finding the answer to accounting queries is difficult for small business owners - like me. Just look at all the accounting queries posted on this forum everyday.

I've been in business 5 years odd - not even one accountant has ever even contacted me via the phone/email/ mail. Instead business development to many of them is hanging out at small business networking events hoping they'll find some clients.

Fiscix with so many forum posts - you aren't exactly the typical small business owner. I don't mean that in a bad way - you sound savvy. Obviously this kind of systematic targeted marketing might not influence you. But break even is only about 1.5 new clients per 100 marketed to per year.

I would be surprised if this approach didnt attract at least 3-4 clients per 100. You would be part of the 96% that it wouldnt work on - which is fine.

 

[fisicx]

If people want advice yes most will search. However if they are looking for advice and a local firm has raised their hand and sent them information in the past weeks / months - its certainly possible they will look there.

It is possible but unlikly. People want answers, they will search or (like me) will pick up the phone to their existing accountant. I'm not going to try to find the fax I got two weeks ago and call some random accountant to ask a question.

Anyway finding the answer to accounting queries is difficult for small business owners - like me. Just look at all the accounting queries posted on this forum everyday.

And that's exactly what people do. By asking on a forum or accounting blog or wherever that get access to a range of experts who collectively may know far more than the local accountant.

Do you call your accountant for answers or do you post here?

 

[directmarketingadvice]

4) The client emails the prospect useful into 1-2 times a month - e.g. simple tax advice, what typically goes into an accountants newsletter etc. This would include suggestions to telephone the accountant if they are not happy with their current account etc.

That's a pretty weak offer, IMO.

I did some consulting for an accountant about 8 years ago and they told me there are two primary reasons people change accountant:

#1: They fall out with the accountant

#2: They get audited my HMRC and blame the accountant for the fact they were chosen for an audit.

The accountants told me that the first group of people are generally over-demanding and make poor clients (so are rarely missed if they leave). The second is just a crapshoot.

So, if you're asking for people solely on the basis they're not happy, you might end up with clients you wish you never had.

I think it would make more sense to come up with USPs for accountants.

For example, another accountant I was talked to at that time was the local accounting specialist for fast food businesses. He had a lot of chip shops, burger vans etc as clients.

Hope this helps,

Steve

 

[Tellerman]

I think the number of calls and follow ups is excessive and would be annoying. I don't think faxing is a bad idea, lots of businesses still rely on them and they do stand out over email.

Not everyone uses or trusts the internet, particularly for tax and financial advice. I think most people want advice from an official source - someone who can be held accountable and who's credentials can be checked. This is particularly true if you are targeting a company and the advice needs to be presented to a board or management group.

I have found accountants can get lazy and are not generally proactive with advice for businesses so you might be able to poach some customers if you can provide some relevant and timely pointers. However you might be better calling a few businesses and seeing what worries them or confuses them and then arranging a local seminar or a drinks night or a simple one to one teleconference with an accountant from your client.

 

[Philip Hoyle]

The best and most sought after clients are new businesses who are just setting up or growing businesses/self employed who've previously done their own and are now out of their depth. If you could find a way to target those, then you may have the seeds of a plan.

It's been said that accountants are like banks in that the client is more likely to divorce their spouse than change accountants/banks. As said above, for people looking to change accountants, it's just as likely that they've got unrealistic expectations as it is that their accountant is poor. Many accountants won't want to take on "risky" or troublesome clients, so they will be choosy about who they take on and so even if your plan is successful in generating a lead, the accountant may not be impressed and won't be willing to pay for poor quality clients, so you have to have some kind of quality control rather than just generating leads.

 

[Karimbo]

Find and carve out a specialist area which most conventional accountants do not want to deal with or are not very efficiennt at.

Or go for startups. Once someone has an accountant seldom do they ever change. It's like a barber (if you're a bloke). You have one hairstyle that works for you and a barber that can do it perfectly the way you like it and you never ever change barbers.

Cold calling companies and trying to get them to change their accountant who is familiar to them and have a working relationship with to someone whose a complete stranger is a no-no. The business will have to be so p****d off with their current accountant to do that.

Also, changing accountant isn't one persons responsibility, it has to be a group decision. The directors, sales team, managers all have to agree to change accountant because they will all have a stake in the working relationship.

Go for startups. Company formations companies do this very well, they partner up with adwords, accountants, banks, web hosting firms etc. Marketing on their behalf or selling your information to them and making a pretty penny off them.

 

[Fred_the_frog]

But if you fax them some tax tips they will print them off then hand them to their current accountant, or worse will try to implement them themselves.

 

[kevin.doran]

If I wanted to spend £250-400 a month I'd probably just engage someone like http://www.thejastpartnership.co.uk and be done with it.

And who on earth uses a fax in this day and age???

 

[andav]

Much appreciation folks for all the posts above, very helpful!

That's a pretty weak offer, IMO.

I did some consulting for an accountant about 8 years ago and they told me there are two primary reasons people change accountant:

#1: They fall out with the accountant

#2: They get audited my HMRC and blame the accountant for the fact they were chosen for an audit.

The accountants told me that the first group of people are generally over-demanding and make poor clients (so are rarely missed if they leave). The second is just a crapshoot.

So, if you're asking for people solely on the basis they're not happy, you might end up with clients you wish you never had.

I think it would make more sense to come up with USPs for accountants.

For example, another accountant I was talked to at that time was the local accounting specialist for fast food businesses. He had a lot of chip shops, burger vans etc as clients.

Hope this helps,

Steve

Thanks Steve, very helpful. I’ve been looking online about why businesses might switch accountant, and hadnt found much.

Thats an interesting idea on the USP side for the accountants. It would help with creating a target list for the accountant, and would make the marketing etc more relevant to the business.

I think the number of calls and follow ups is excessive and would be annoying. I don't think faxing is a bad idea, lots of businesses still rely on them and they do stand out over email.

Not everyone uses or trusts the internet, particularly for tax and financial advice. I think most people want advice from an official source - someone who can be held accountable and who's credentials can be checked. This is particularly true if you are targeting a company and the advice needs to be presented to a board or management group.

I have found accountants can get lazy and are not generally proactive with advice for businesses so you might be able to poach some customers if you can provide some relevant and timely pointers. However you might be better calling a few businesses and seeing what worries them or confuses them and then arranging a local seminar or a drinks night or a simple one to one teleconference with an accountant from your client.

Yes the number of follow ups in the OP is excessive in hindsight. Apologies - bad example.

I’m with you on the accounting advice part above. Finding accounting advice without speaking with an accountant is time consuming and difficult - unsurprisingly. Accounting and tax issues are complex. Its like going online for legal advice. You might get an idea of an answer - but peoples circumstances are unique, and without speaking with a professional you won’t be sure.

When it comes to making financial and legal decisions, people want to be confident they are doing the right thing. The typical UK small business owner does not go online and start posting questions in forums. Of course many do here on UKBF - but I do not believe this is typical of the market as a whole.

The best and most sought after clients are new businesses who are just setting up or growing businesses/self employed who've previously done their own and are now out of their depth. If you could find a way to target those, then you may have the seeds of a plan.

It's been said that accountants are like banks in that the client is more likely to divorce their spouse than change accountants/banks. As said above, for people looking to change accountants, it's just as likely that they've got unrealistic expectations as it is that their accountant is poor. Many accountants won't want to take on "risky" or troublesome clients, so they will be choosy about who they take on and so even if your plan is successful in generating a lead, the accountant may not be impressed and won't be willing to pay for poor quality clients, so you have to have some kind of quality control rather than just generating leads.

Thanks Philip haha an insightful post from an accountant, just what I was looking for!

I’m interested in what you said about new businesses. So many new businesses don’t make it past 2 years, and for those that do many don’t make it past 5. We’ve all probably heard that statistics.

In your experience have found when you have new business clients this happens - ie they often don’t stay for long because they go out of business?

Thats why I thought targeting established businesses would be better - at least they have a track record of staying in business - so if you obtain them as a client, they are more likely to be around in 5 years as a client.

Regarding growing businesses/self employed who've previously done their own and are now out of their depth - yes I definitely see how they would be good to target - but as you pointed out, finding a way to target them is the difficult part.

You can buy data on new businesses, but I assume an issue would be many simply don’t need an accountant yet. But you stated above new businesses can be ideal clients - so maybe I’m wrong.

I hadn’t heard that similarity with banks / divorce before, and as Steve pointed out above, if someone is looking to change accountant you might have to question why/ if you really want them as a client!

Do you think it would be worthwhile considering the new business angle?

I’m puzzled though - I’ve registered a number of companies before, but don’t recall ever being sent direct mail from an accountant.

Find and carve out a specialist area which most conventional accountants do not want to deal with or are not very efficiennt at.

Or go for startups. Once someone has an accountant seldom do they ever change. It's like a barber (if you're a bloke). You have one hairstyle that works for you and a barber that can do it perfectly the way you like it and you never ever change barbers.

Cold calling companies and trying to get them to change their accountant who is familiar to them and have a working relationship with to someone whose a complete stranger is a no-no. The business will have to be so p****d off with their current accountant to do that.

Also, changing accountant isn't one persons responsibility, it has to be a group decision. The directors, sales team, managers all have to agree to change accountant because they will all have a stake in the working relationship.

Go for startups. Company formations companies do this very well, they partner up with adwords, accountants, banks, web hosting firms etc. Marketing on their behalf or selling your information to them and making a pretty penny off them.

Thanks Karimbo - as Steve mentioned above the niche idea might be worth exploring.

Regarding the cold calling - the purpose of the call/ fax is to get the prospect to subscribe to the accountants newsletter. Its not about trying to sign them up as a client immediately.

On the responsibility of changing accountants being down to multiple people. I don’t envisage targeting businesses where this is the case. Businesses with a turnover of a few hundred thousand pounds do not make such decisions around a table - not in my experience anyway. Its the owners call.

And has I said to Philip above - do accountants really partner with company formations businesses? I’ve got adwords / bank accounts etc contacting me before for after registering a company - but not accountants.

If I wanted to spend £250-400 a month I'd probably just engage someone like http://www.thejastpartnership.co.uk and be done with it.

And who on earth uses a fax in this day and age???

Im not proposing to setup a telemarketing agency. I’ve work in seo / lead generation online and am considering a multi touch system using a number of software and marketing applications I’ve used before. Telemarketing is one aspect of the product - but its not the product.

 

[Bob]

When I was in practice, we hated unsolicited faxes and were registered with the Fax Preference Service

 

[andav]

I know from experience being registered with the FPS or CPS doesnt really matter. You'll still receive calls or faxes

 

[Bob]

I know from experience being registered with the FPS or CPS doesnt really matter. You'll still receive calls or faxes

Absolutely but doesn't it then annoy you when you get them