Why is it so
hard to effectively SELL additional financial & Accounting
services to business owners?
You probably
have some great ideas for additional Accounting services that
would much enhance the success of business owners.
There are also
some magnificent additional services created by marketing organisations
that sell these packages widely to Accounting Professionals in
public practice.
Today, there
are many added-value Accounting services available.
Unfortunately,
there are very few EFFECTIVE ways to get these SOLD to
business owners.
The gaping hole
in added-value Accounting service marketing
I've personally
talked to quite a few clients of mine who have bought such advanced
added-value Accounting services from other organisations offering
marketing services to Accounting Professionals in public practice.
The emphasis
today appears to be on developing new services for Accounting
firms to sell to their existing clientele and / or target audience
in their region.
Many of these
services are changing the traditional role of the Accounting
Professional more toward that of a management consultant.
Admittedly,
it is an area that is adjacent to finances and financial consulting.
And it may well be that the future role of Accounting Professionals
will incorporate management consulting.
It is an interesting,
challenging and definitely profitable area to expand into - and
something that an Accounting Professional has a natural knack
for due to his or her experience.
But I'm afraid
there is a gaping hole in this otherwise perfect future plan.
Let me explain.
For the first,
I have been amazed at how many clients contact ME to get an
effective way to MARKET AND SELL these added-value products
they've purchased from other organisations.
It appears
that very few of those that sell these products to Accounting
firms have created an effective way an Accounting firm could
use to sell those services to THEIR clientele and target audiences.
Of course,
there are brochures, web sites, CD-ROMs and whatnots offered
- usually at an extra cost - for the selling of these services.
There's only
one little problem.
These tools
don't SELL the services!
After having
spent perhaps £20,000 on such service systems and then
failing to SELL these great services, Accounting Professionals
can understandably feel a bit miffed. After printing glossy brochures
and paying £50-100 a month for a web site with NO results...
well, one can feel a bit disheartened.
But WHY
don't these excellent products and services SELL?
What's
wrong with these high-class presentation tools - why won't they
convince business owners to sign on?
Pertinent questions, wouldn't you say?
Research of
some considerable length brought forth the reasons for this lack
of results.
It all comes
back to the basic principles of traditional marketing of Accounting
services.
The business
owner has to learn to crawl before he can walk
The traditional
marketing strategy is what these creators of fine Accounting
services USE in making of the marketing materials with which
you are supposed to sell those added-value services.
Traditional
marketing works on the principle of "today is the last day
of your life - only what happens now matters." I know there'll
be many who disagree with this.
Ostensibly,
traditional marketing aims at future - but in reality, it doesn't.
It's NOW, it's impatience, it's "go for straigt to business"
... and I don't care how much they claim otherwise.
The ideology
is to get it NOW or yesterday! Who cares about tomorrow,
next month, next year or decade - I'm not interested in anything
but getting sales NOW.
And what I
say next may shock you. But here is an observation one can make
in the hall of fame of marketing:
ARROGANCE is the hallmark of
traditional marketing.
These boys
and girls are DEAD-CERTAIN that they know exactly what your
target audience wants... simply because they are so darned
intelligent and clever - so it HAS to be that way.
They're intellegent,
all right - and they're also very wrong in their assumption.
Clever people make mistakes also and once can sometimes be too
smart for one's own good.
For what about
the TARGET AUDIENCE's own opinion on what they want?
Shouldn't
we ask THEM
what they want, like, desire, despise, hate, love, need, and
so on?
Wouldn't
it be better to find out from THEM what they DON'T understand
or know before we OFFER IT TO THEM?
The forgotten
senior fact is that you have to listen before you talk.
In other words, you must find out what your target group wants
and needs in THEIR WORDS before you offer them something. And
you should offer them what they WANT.
Offer them
what THEY want.
You START with
that - and develop it from there onto what YOU know they need.
But not
before THEY have agreed to it.
And that's
exactly the mistake that traditional marketing makes.
It ASSUMES
it knows
and, in its arrogance, doesn't bother verifying. And even
after getting thousands of indicators of "not working"
it continues to assert its own rightness.
I want to make
one thing very clear: I'm definitely not saying business owners
wouldn't need or want these services.
They NEED them,
that's obvious. But to get them to WANT those services, something
has to change.
Currently,
business owners are offered these service WAY BEFORE they're
ready for them!
These are ADVANCED
services requiring an relatively good basic understanding of
financial planning. A person cannot run before he has learned
to walk.
You didn't
buy an encyclopaedia before you could read, did you? You wouldn't
buy your son or daughter a bicycle before her or she could walk,
would you now?
You would recognise
the fact that SOME DAY it would become current to obtain that
thing. But by the same token, you'd be very certain it isn't
NOW.
You wouldn't
have to consider it very long - you would immediately come up
with the answer of "sure, I'm interested... but not yet."
See - it's
just the same thing with these added-value services. "Very
interesting... but not yet!"
Imagine the
unimaginable. If YOU had hardly ANY UNDERSTANDING of the simplest
tasks of financial planning and comprehended NAUGHT of Accounting...
would you buy management consulting service?
Right you are.
Of course
you wouldn't.
Nobody in their right mind would!
And therein
we see the root of our problems in attempting to sell these advanced
added-value services to business owners.
The assumption
that the vendors of these added-value Accounting services make
is that business owners at large UNDERSTAND the need for these
services.
They don't. They're WAY BELOW
that level.
But YOU
understand them very well and thus, YOU can buy the service
from THEM, see?
They make very
much sense to YOU - but that's because YOUR knowledge is astronomically
more advanced in this subject matter... light-years
ahead of the comprehension of an average business owner!
That's the
trick - that's why YOU can be led to believe they WILL sell
and that's why YOU buy those service concepts.
It's a known
sales closing situation. An exeptionally able and intelligent
person is quick to realise the great potential in an idea - and
often too generous in his or her assumption on how "normal"
people will be able to follow that same train of thought.
This is the
reason why you then have such difficulty in SELLING these services
to their intended end users.
It's that
HUGE GAP in understanding on matters of finance, Accounting and management
between you and the average business owner.
What you've
forgotten about your subject is probably more than the average
person will ever LEARN about Accounting and finance!
Thus, what
you think is good for the business owner is very much different
from what HE considers to be true in the matter.
These two views
are not contradictory. They're definitely ALIGNED and pointing
to a common goal.
It's simply
a case of very different level of aptitude, familiarity, experience,
knowledge and expertise on the subject at hand - Accounting &
finance.
The STARTING
POINT is MUCH LOWER than generally realised by traditional marketing
experts.
You need to
start at a level where you're ABSOLUTELY CERTAIN he will be able
and willing to FOLLOW.
To do otherwise
would be like trying to drive home a doctorate's worth of education
to a layman in an hour.
Mission impossible.
Only - he will PRETEND to understand simply because nobody bears
to reveal his own incomprehension and ignorance continuously!
Thus, to attempt
selling these advanced services the way traditional marketing
advocates is, inevitably, an exercise in futility.
To start with
this added-value service, the awareness level of the average
business owner should be MUCH higher than what it currently is.
Regardless
of how acutely YOU know he needs this service, irrespective of
how well YOU understand that he would greatly benefit from it
- HE is completely unaware of it.
He doesn't
know it. It isn't TRUE for him!
And a business
owner can only make decisions based on what HE understands to
be true.
Thus, before
you can SELL an advanced service, you have to make the business
owner SEE the need for it.
For decades,
the masters of traditional marketing churned out campaigns without
bothering to research what the target group WANTS and THINKS.
Well, to be
fair, they DO research. They find out what YOU want - and then
sell it to you. But YOU aren't the end user of these added-value
Accounting services, are you?
Thus, what
an Accounting Professional in public practice wants has little
bearing on what his TARGET AUDIENCE wants.
In any such
indirect campaign, the primary concern SHOULD be given to
developing an effective marketing system to sell to YOUR target
audience.
This is so
obvious it seems almost silly even to say it out loud, doesn't
it?
Silly or not,
it doesn't get done.
And the end
result is - you're stranded with a large investment that gives
NO return!
We actually
deliver several theme seminars in and around this particular
subject... click
here to view the presentation of HDK Theme Seminars for accounting
professionals
if this subject interests you.
Too little,
too early - the fatal mistake of traditional marketing
See, if it
is too EARLY to offer it, it isn't going to get sold. The marketing
devised for this great added-value Accounting service of yours
won't get any positive and expected results to speak of.
But I'm afraid
that's not the worst of it. For ANY marketing, ANY attempt to
offer services ALWAYS produces results - but they're not the
kind you want.
The way people
form information is by experience. This information is created
in form of opinions and viewpoints. An opinion is almost always
DEFINITE - in other words, it's FOR or AGAINST.
Unfortunately,
it is the CONTACT with the information that brings on the decision.
For the decision-maker, it doesn't matter whether or not the
information is COMPLETE, ADEQUATE or ACCURATE.
In fact, most
people don't bother doing the rather hard work it takes to VERIFY
the information or check that they have ALL the data needed for
a definite decision.
A NEGATIVE
decision is BY FAR the more predominant one.
In other words,
people make a negative decision (form a disapproving opinion)
10-100 times more often than a positive one.
It is, of course,
much easier to withdraw from something than to go for it.
Very few people
can resist forming a DEFINITE stand on a subject which they're
being offered. It is natural human behaviour.
It is, for
instance, what you quite automatically do when flicking through
your mail. Any sales letter gets max three seconds and then a
decision is made... and predominantly it's a negative one...
and into the dust bin it goes.
All right.
Now, you know what the true results of approaching business owners
with dysfunctional, non-productive marketing are.
They form
a definite NEGATIVE opinion about this great service you're offering!
If the marketing
approach doesn't create a POSITIVE understanding - which means
the client signs on - it will provoke a NEGATIVE opinion being
formed.
The business
owner decides that this service is NOT FOR HIM.
Unfortunately,
that will then REMAIN his stable datum on this!
Offer it later
and he will "check his memory" for information on this
- and come back with a ready decision.
"Oh,
now I remember... well, actually, I'm already familiar with this
concept... and it's not really suited for our company..."
See - he just
goes back to the archives and fetches the same old decision without
even THINKING about it.
Now, there
are ways to get him to reevaluate his previous decision in light
of new developments. But it is definitely more work to get someone
to rethink an opinion ONCE IT IS FORMED - you're asking him to
reverse his own decision which would mean his earlier conclusion
was WRONG.
It can be done
and, if an unsuccessful presentation has been already given,
it MUST be done.
Of course,
the easy way is to replace the marketing strategy and get it
sold the first time. Otherwise, you'll just double your work
and expenses - at the very least.
The approach
of traditional marketing is to offer these added-value services
directly.
It's the
wrong approach.
It is a wrong
estimation of what it takes to SELL such services.
For most business
owners, it is a far too advanced service for their CURRENT awareness
of what they need. Consequently, the information ON the service
cannot but be lost - and, in essence, be "too little"
to get the job done.
What business
owners expect from Accounting service
Before you
can sell ANY additional service (beyond monthly and yearly accounts
and other basic services such as payroll, tax filing, etc.) the
business owner must UNDERSTAND the need for it.
To understand
the need for advanced services, he must first understand the
BASIC services.
In essence,
he must understand the INFORMATION that you provide in the monthly
accounts and start utilising it to his benefit.
At best, the
average business owner has a vague understanding of financial
planning. A comprehension as hazy as this leads to NO affirmative
action - he doesn't really do any financial planning at all.
Financial planning
is impossible (or meaningless) without accurate, timely information
about the key financial figures of the business activity.
But - he
GETS those facts from you, right?
Well, in theory,
yes.
But in practice,
unfortunately, NOT AT ALL to the degree we generally believe!
Now, don't
misunderstand me. I'm definitely NOT suggesting you wouldn't
deliver what you've promised.
I'm simply
saying that there's overwhelming proof that the average business
owner doesn't UNDERSTAND the information he gets from his
Accounting firm.
But if that's
the case - why doesn't he ASK for clarifications?
Bear with me
and let's have a look at this.
I think we
can safely agree on that the average CLIENT is FAR LESS knowledgeable
or familiar with the purpose of Accounting than the Accounting
Professional servicing him.
The Accounting
Professional's expertise is MUCH greater on matters of Accounting
and finance, the concepts and terminology, the utilization of
information... all that it embodies... than his or her client.
I mean - if
it wasn't like that, why would he USE these services, right?
Working along
that line, let me ask you this:
How MUCH bigger
would you estimate that your own understanding and command
of this subject are as compared to that of an average business
owner?
Now, maybe
you've educated your own clients but remember, we're talking
about the AVERAGE potential client - the owner of a small-to-medium
sized company in your area.
Obviously,
it isn't YOUR responsibility to educate clients. Each and every
business owner is personally responsible for obtaining the knowledge
NEEDED to run his or her business.
But we're not
talking about responsibility here. We aren't looking for any
culprits - it's not "somebody's fault" that the world
is as it is today.
All right. So - HOW many times bigger would YOUR knowledge
on Accounting & Finance be compared to an average business
owner?
Five times?
Ten times? A hundred times? Or... even more than
that?
Whichever figure
you arrived at, it would illustrate how many times MORE DIFFICULT
it is for an average business owner to UNDERSTAND those advanced
services.
It gets worse.
That same difference
would also give you an estimation of how much the average client
TRULY understands even the BASICS of Accounting.
Understanding
simply builds on earlier information.
If the basics
of Accounting aren't understood, the business owner will find
Accounting and finance very confusing subjects.
Let's play
with an idea.
Let's imagine
a newborn businessman. He has just started his business, all
fresh and enthusiastic. Let's say he is going to manufacture
chairs to sell.
He is a carpenter
and has extensive experience in building furniture - and lots
of great ideas for new designs.
So, he starts
his business. He finds a place to work in and gets the machinery.
Next, he starts to create his fist batch of chairs for his first
design.
After a few
months he has some chairs and works hard at getting these sold.
He finds retailers or buyers... and so on. He designs a few new
models and puts them under production. Finds more retailers.
Gets money, pays his bills... and so on.
Somewhere along
this route, someone is going to point out to him that it is mandatory
to keep records. He finds out it is easiest to get an Accounting
firm to handle it. So, he picks a firm, signs on and - it's
handled.
He continues
his business life. The Accountant offers to handle his payroll
and he agrees. After his first fiscal ends, the Accountant informs
him about the mandatory filing of taxes, yearly accounts and
all that. So he says "OK, handle it," and that's
that.
Several years
pass like this and the business owner gets more income, hires
personnel, gets more machinery, more space for manufacturing
and storage... and so on.
Now, here's
the question:
Where in
all that did he get ANY idea of how to analyse his finances?
What would
have taught him to understand the reports on monthly accounts
that he receives?
In fact - does
he even REALISE that there's something to be UNDERSTOOD in those
spread sheets?
Does he perceive
that there is some vital information coming from the Accounting
firm every month?
Hmm... makes
one think, doesn't it?
This is a practical
man with practical skills - not your natural choice
for a financial analyst. It's not his forte, really.
For someone
with your knowledge, expertise and understanding of finances,
it can be difficult to accept that there may be people who have
absolutely no clue of the purpose and benefits of Accounting
services.
Could there
really be business owners that don't even KNOW that spreadsheets
contain vital, time-sensitive information vitally needed to have
ANY control on their finances or to make any INFORMED decision
about money?
I'm afraid
it IS so!
It gets even
worse.
Survey shows
that almost 100 percent of the owners of small-to-medium sized
businesses considered it a NEW, EXCITING IDEA that Accounting
firms would provide them monthly information on key financial
figures!
Read that a
few times over. It's not a typo.
Almost no
one had even HEARD about this valuable service - an Accounting firm
giving a detailed, understandable report on the development of
the client's key figures month to month!
In other words,
most business owners don't SEE Accounting as something that
produces priceless information and insight to THEM - but
a mandatory service reporting their activities to the authorities!
So, what do
business owners at large EXPECT from Accounting services?
Well, looking
at it from THEIR viewpoint, they expect... er... well... NOTHING!
That's why
they want it at the lowest possible cost. And that's why they
won't buy MORE OF IT, see?
They do expect
you to keep the books, do the yearly accounts, file the taxes
and all those routine services you do to keep their legal requirements
to the government.
But other than
that - nothing.
Whether or
not it IS so, is easy to verify for anyone.
If it was so,
then the obvious starting point would be to create a very basic
CONSULTING service for business owners just to ensure they understand
the information you produce for them monthly.
Doing so and
offering this form of very BASIC added-value service as the one
you SIGN EVERYONE ON WHEN THEY BECOME YOUR CLIENT, you would
find out whether or not it is true (that business owners understand
and expect naught).
If it WERE
true, you could easily CHARGE MORE for this service - as it IS
an addition, viewed from the business owner's viewpoint, see?
Once you get
the service going, the business owner would THEN get genned in
on the TRUE priceless value of the information you provide for
him.
Looking into
his key figures monthly, discussing these with him, talking problems
and opportunities found... don't you think it would be DEAD-CERTAIN
that ALL those other needs (that the more advanced added-value
services provide solutions for) would just POP UP quite naturally?
If you do think
so, you're ABSOLUTELY RIGHT!
The effective
approach to selling your added-value Accounting services
The traditional
marketing strategy ASSUMES business owners know a lot
more than they actually do.
The effective
MODERN way is to assume NAUGHT about the prior knowledge-level
of potential clients and thus, avoid setting any unnecessary
prerequisites or disqualifying factors.
Instead, you
find out by researching the target audience carefully.
Based on that,
you plan the correct GRADIENT of educating business owners -
and then create THAT into a basic added-value service... a "starter
service," if you wish.
You then sign
new clients FIRST onto this BASIC service - always. The basic
consulting service is the first one you sell - it's the prerequisite
to everything.
(The good news
is you'll get paid for the basic service far beyond your normal
hourly rates!)
You enter a
monthly consultation with each new client. You explain in simple
layman terms the development of his KEY FIGURES and what problems
and / or opportunities the trends indicate.
You have to
try it to fully appreciate the quality of the trusting and
mutually enjoyable cooperation that ensues!
Now, I'm not
talking some clever idea here - it is a researched, piloted
and tested service/marketing concept that countless practices
USE already.
It is very
successful all on its own - and you can imagine that there'll
be PLENTY of opportunities to sell MANY of those more advanced
services!
NOW the
client UNDERSTANDS.
NOW,
he TRUSTS you.
NOW,
he sees VALUE in what you offer.
And that's
all you need to SELL those added-value services successfully!
A simple way
to get started might be to reserve your initial telephone
consultation
so we can start sorting out the challenges that currently hamper
the achievement of your goals.
And if you're
interested in acquiring a ready-to-use system for selling and
delivering this type of basic monthly consulting service to really
get those advanced services sold in abundance, CLICK here to
read the introduction of the Modern Accountancy Marketing &
Sales Course.
It has it all,
from finding prospects to signing on new clients constantly!
Best wishes
Harry Kafka
HDK
Consultants Ltd
32 Manning Close
Richmond Square
East Grinstead
West Sussex RH19 2DR
United Kingdom
Tel. (01342) 328 116
CONTACT
FORM
E-mail: info@accountancymarketing.co.uk |