Seeking out the right accountant is a smart step for any business, but it isn’t always an easy process. An ill-informed choice can be a costly mistake, which is why organic endorsements (genuine, unpaid recommendations) are all-important. People trust people. They lean on their peers for social proof when making buying decisions; they want to know what the people they respect think.
In a 2022 survey, Chorus Insight, a specialist in client research for professional services, asked 159 buyers in the sector how they first came to instruct their current adviser. Almost half (48%) cited word of mouth – streets ahead of search engines (20%) and online advertising (8%) in second and third place.
‘Referrals are a cost-effective and reliable growth strategy’
As much as 80% of Birmingham-based firm Severn Accounting’s new business has come from organic recommendations through long-standing client relationships, family and friends, networking and participating in business groups and forums. The firm’s associate director Ali Jaw FCCA says: ‘Referrals carry more weight than traditional advertising, as they come from known, credible sources and reflect real client satisfaction. This makes them a cost-effective and reliable growth strategy for us and many other firms.’
Leads to die for
Compared with the investment needed for other channels – such as advertising, marketing, PR and hospitality – spend on word of mouth can be very low. And there’s another huge incentive: potential clients who find you this way are almost always ready to buy.
‘Clients go looking for others’ opinions when they are in buying mode’
Jason Ball, founder of B2B marketing agency Considered Content, says that word of mouth lies in very close proximity to a sale. ‘Clients go looking for others’ opinions on their accountants right at the point they are considering a change – when they are in buying mode,’ he explains.
These leads don’t require the same level of nurturing as those that come through your website or a search engine. There’s a much higher chance of closing a sale, and in the near future, too.
And when you consider a business might switch accountancy firms only every 10 years or so, finding those that are in the market for a new firm is needle-and-haystack territory. That makes referrals a gift for anyone whose role involves winning new clients. But you don’t just have to wait around for your existing clients to talk you up – there are several ways to proactively boost word of mouth.
Only the best
Success hinges on stellar service. Delivering excellence is the price of entry for firms looking to secure new clients this way. In short, people need a good reason to recommend you.
‘Trust is paramount in professional services,’ says Chorus Insight founder Graham Archbold. ‘When an individual makes a recommendation, they put their own reputation on the line. This means it’s hard to earn recommendations, but they are highly valuable because they are trusted above all else.’
Chorus Insight has found a strong correlation between willingness to recommend and practice profitability. Firms that fail to deliver a service that warrants recommendations (or retention) will struggle to grow.
‘If you can’t recommend your accountant, you shouldn’t be working with them’
Alex Falcon Huerta FCCA, founder of consultancy Soaring Falcon, has won ‘most’ of her 45 technology clients through word of mouth. ‘If you can’t recommend your accountant, then you shouldn’t be working with them,’ she says. When she meets with her clients in person, she simply asks them to think of her when their peers are looking for recommendations.
Nasheeda CC, founder of Dubai-based consultancy Nishe, suggests trying to maintain good relationships with clients who move on, for whatever reason. ‘This helps in the long run, as we have clients who have come back to us or referred others to us.’
Be proactive
Archbold says the best firms verify the source of new business as part of their onboarding process so that attributing recommendations is easy. Once they identify these ‘promoters’, they invest more in those relationships.
‘An added benefit is that promoter clients are also less price-sensitive than passive or detractor clients. They are also easier to service, accounting for fewer complaints and incidents of rework,’ he says.
Some firms devise referral programmes. Severn Accounting plans to introduce a refer-and-earn scheme, although Jaw points out that not all referrers are comfortable with incentives.
‘Don’t fall into the trap of thinking endorsements will either happen or not’
It is, however, better to try and fail than to leave recommendations to chance and serendipity. Ball warns firms not to fall into the trap of thinking word of mouth is ‘passive’, and that endorsements will either happen or not. ‘In reality, accountants can boost word of mouth by giving their clients something to talk to their contacts and colleagues about – something that makes them look smart and informed,’ he says. That something could be high-quality content – the latest research, an intriguing thought leadership piece, or the output of an exclusive roundtable.
If you’ve struggled with cold approaches in the past, it’s because so few will switch firms without a strong personal endorsement from someone whose opinion they trust. But don’t sit back and wait for it to happen. Put in the work so that when someone in your client’s network is looking to make a change, they’ll think of you first.
