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The first step is to measure your firm’s size.
A hundred person firm needs a marketing director. No exceptions.
They may need to outsource projects to supplement efforts, but a firm
this size needs a dedicated managerial resource. Firms with 50 to 100
employees should have at least a marketing coordinator to help with
mailings, database management, and communications. Firms with
fewer than 50 employees probably do not need a marketing director, could
use a coordinator, but often have no marketing resource. Firms
with fewer than 25 employees should outsource marketing activities.
Except in rare circumstances, they will not find a cost-effective
qualified business development resource.
What is
your firm doing? Are you communicating with targeted audiences or
occasionally sending messages to the same group? Does the firm have
direction? Are you too busy to coordinate marketing activities or do not
need assistance because of a strong referral network? Most firms rely on
referrals to grow, but developing and maintaining a referral network
should be a planned strategy. Over time, lack of formal marketing takes
its toll. Partners with established referral networks retire or leave,
referral partners move on, and networks slowly contract. All firms
need to conduct active marketing efforts to maintain their practice and
develop successors.
Why is
marketing difficult for many firms? Perception and entrepreneurial
thinking are two reasons. Many firms perceive marketing as sales.
Selling is something many CPAs do not like to do and think that it is
for sales reps, not professionals. This perception can cause firms to
avoid sales or marketing activities, or worse, compromise and hire a
sales-oriented person with no marketing savvy. Entrepreneurial thinking
is the other blocker. Partners often set the direction by telling the
sales or marketing person what to do. Often, partners find it difficult
to accept direction from an employee or outside consultant. It is hard
for senior management to let go and learn to manage the process, not
dictate it.
If you
need marketing, do you hire an employee or outsource it? Create a
list of objectives. What steps need to be done to achieve these goals?
If you are unsure, how will an employee take the leadership role unless
they have significant experience marketing for CPA firms? Hiring a
marketing resource new to the CPA profession is a poor beginning to a
business development effort. Look at your existing efforts. What
is being accomplished? If you have an in-house person, and it is not
working, perhaps the problem is direction. Lack of success does
not mean it is the person’s fault. It could be a planning issue. Whether
you hire an employee or outsource, a plan is vital.
What is
Outsourcing? Instead of hiring an employee, you hire a
marketing company that becomes your marketing department. The marketing
firm’s location is irrelevant. A marketing company with CPA firm
experience will cut through years of learning curves. What works for a
firm in Cleveland can be applied in Boston, Miami or San Francisco. Good
ideas are good regardless of the geographic location of the firm. Only
the targets and messages may change.
How Does
Outsourcing Work. Ninety-five percent of marketing is done via
phone, direct mail, or e-mail. If you think you need a sales
person to attend chamber luncheons, rethink your strategy. A CPA firm
sale is relationship driven. The prospect buys the professional, not the
salesperson. The goal of CPA marketing should be to stimulate interest
to the point where a prospect is interested in talking to the firm. The
prospect wants to bond with a partner or manager, not the marketing
person. Physical presence of the marketing person is not needed.
Instead, hire a resource that knows how to conduct e-mail marketing,
Internet research, and can write a good letter.
Consider these factors:
1. Costs.
An employee ranges from $35,000 to $80,000 a year including benefits,
employer-related taxes, computers, office space, and other costs. A
part-time solution will cost at least $20,000 to $30,000. Any less means
you have an inexperienced candidate. An outsourced firm can be
retained at a budget set with costs dependent on the goals and how
quickly you want them done. Outsourcing costs more per hour but less
than a dedicated employee. To get a cost-effective solution, don’t look
at the hourly costs. Look at the value potential of bringing in someone
with marketing skills, sales experience, and ideas from other CPA firms.
2. Depth
of Skills. Marketing is going electronic. Web sites, e-mail,
database management, literature and direct mail design are critical
skills. Can one employee have knowledge in all of these areas?
Hire a resource with the ability to expand the use of technology in
marketing.
3. Comfort
Zones. Carefully monitor activities. Many marketing people get too
involved in working the mechanics of what is already in place, i.e.,
mailing newsletters or sending out tax organizers instead of developing a steady stream of
new ideas. A good in-house marketing person does not do billing or
scheduling and then marketing.
4. Set Expectations. Clearly
identify goals and ask for a plan to achieve them. If there is
disagreement with direction and expected effort, you need to know that
before hiring someone. A bad start leaves a lasting impression.
The firm will retract to old ways and when attempting marketing again it
will be met with the
“we tried
that once and it didn’t work”
phrase.
The most effective method is a solution
that fits your budget and produces progress. Determine a
realistic goal before committing to hiring or outsourcing. If you are
unsure, read a few articles and talk to the columnists to gather ideas.
This should provide insight in evaluating an employee or marketing
company.
| Bob
Lewis is the founder of Visionary Marketing, a firm that
helps CPA firms develop marketing strategies to target new
clients, increase existing client revenues, and build referral
partner networks. Visionary works with marketing directors, or
becomes the marketing director for small to mid-size firms. Mr.
Lewis can be reached at (800) 995-9186, at
www.ThinkVisionary.com,
or
click here to send Bob an e-mail. |
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