In the big pond where accounting firm opportunities swim, far too many prize catches get away from us. If you're experiencing this and haven't figured out why that one got away (or settled for the excuse that it was price), I'm here with answers. It may surprise you to learn that 80% of lost opportunities can be tied to the blunders below. Let's dive in.
The current state of disruption in the market has put many current clients into play. Some accounting firms are pruning their client base from the bottom, while others are growing through consolidation. Layer onto this persistent staffing shortages, rising prices and client dissatisfaction with service levels, and you've got a recipe for defection. The good news is that client churn presents an opening for growth-minded firms to land larger and more attractive fish.
Though limited space here precludes a comprehensive how-to, I will share two big blunders that are certain to keep you from the fish — both large and small — that you deserve to catch.
Blunder No 1: Bringing along a plus-one
The first mistake is bringing an associate along on your first visit to a prospective client. The approach needs to be one on one, not two on one, or one on two. That's because individuals are much more likely to reveal critical information in a private setting. Don't be afraid to ask probing, focused questions when the only eyes the prospect can lock onto are yours!
Opportunity pursuit is all about gathering the most information within a designated time frame. You often don't have months or years to figure it out, so focus on optimizing intel and impact within the limited sales cycle timeframe to optimize your strategy and increase your odds to win.
During an initial phone call, advise the prospect (i.e., the CFO) that you recommend the first visit be just you two, and that you can both plan to bring others to potential future meetings if appropriate.
Blunder No. 2: Failing to thoroughly qualify your lead
This is where most mistakes ending in losses are made. The objective in your first one-on-one meeting is always to qualify the lead. In order to confirm that it is worthy of pursuit, you need to qualify it early (the first thing you do), often (individually with each person in the decision-making/influencing process), and hard (robustly, by asking all the tough questions). It's a straightforward calculation: The more information you get, the better your strategy and the better your odds of landing the opportunity.
Lead qualification hinges on asking five essential questions and getting the prospect to significantly elaborate the details. I use this process to vet my own consulting opportunities. While it's a pretty simple approach, don't confuse that with easy. CPAs often shy away from appropriate boldness. I'm giving you permission to use standard business protocol in qualifying a lead! It will take some drilling and digging to uncover answers to the following prospective client questions:
No. 1: Why buy/change? What are your reasons for seeking a new accounting services provider? Is it fees? Communication? Service line requirements? A poor experience? Encouraging the prospect to elaborate will tap into their unhappiness with the current situation (an unconscious reminder of their increasing dissatisfaction), as well as provide the first clues to crafting a winning strategy.
No. 2: Why now? What makes this the right time, rather than last month or next year? What are the circumstances that caused pain, prompting you to look around? You are gauging their level of pain — is it sufficient to motivate a change? This insight also provides an early indication of the length of the sales cycle, essential insight for assessing timing and rhythm of the pursuit.
No. 3: Why us? What do you know about our firm? Have you had experiences, positive or negative, with us? With this line of questioning, you are looking for two things — first, how much do they know and is it accurate, and second, is there any baggage from the past. This is your chance to succinctly reposition the firm if the prospect is misinformed. As well, it provides a chance to drill down and discuss the nature of the baggage and appropriately clear the air.
No. 4: Who else are you considering? It's critical to establish a comfort level talking about the alternatives. The more you know, the better your strategy and the higher your odds to win. Include questions about the incumbent: Will you even tell the current provider you are in the market? If the incumbent learns that you're shopping and tries to retain you with a sizable price break, will you reconsider them?
Intel like this repositions you from service provider to trusted consultant by communicating that you care that the client finds the best possible firm, even if it's not yours. There are techniques that enable you to establish this consultative relationship, increasing your odds to win, or alternatively, getting them in the right hands if they aren't a match for your firm. The trust you build is a strong potential future asset.
No. 5: Who cares? Look for names and reporting relationships among decision-makers, recommenders and influencers both inside and outside their organization. This lets you know who you should be talking to throughout the sales cycle.
Politics and power are a significant part of sales strategy. Who is aligned with whom? What's the chain of command? Who has a vested interest in the choice of a firm? Once you know who cares about the decision, you can launch an effective pursuit. It's not uncommon for a key power player to emerge near the end of the sales cycle as a surprise to the sales team. This is where you decrease the likelihood of a surprise influencer, while eliminating wasting time with someone who pulls no weight.
Crafting a winning strategy is like chess: The individual who wins is the one who anticipates moves based on information and experience. While you might feel uncomfortable digging around for this level of intel, I officially give you the go-ahead!
While there are many reasons for lost opportunities, the wrong meeting dynamics and failure to properly qualify a lead present the biggest pitfalls.
Now, go forth and reel 'em in!
