Specializing and Innovating

Our yard was inundated with bird food-eating squirrels and we were desperate. So we did what desperate people do. We fell for a shiny advertisement promoting a highly specialized (read “expensive”) squirrel-defying bird feeder.

The Supreme Court’s 1977 decision Bates v. State Bar of Arizona allowed lawyers to advertise their services, opening the gate for CPAs to enter the world of marketing. In Bates, the justices held that advertising was a type of free speech and as such, was protected by the First Amendment. Many CPAs believed that marketing would enhance their firms’ visibility.

Not so long ago, the business of an accounting firm was as predictable as men’s business attire. Tax preparation and audits were about as far as it went. Unfortunately, as firms have attempted to branch out into an array of related services, their experiences have been hit or miss. More often than not, the reason is that they are unfamiliar with some of the fundamentals in bringing a new service to market, and often incorrectly pattern their efforts after bringing products to market.

Mistakes can teach us a great deal. The lessons can be difficult, even costly, but there’s no better teacher. When the goal is establishing a technology niche, or any new service, I’ve seen a pattern of errors worth identifying and avoiding.

In today’s sophisticated marketplace, professionally marketed and managed services stand the best chance of gaining notice and winning market share. What’s true for consumer goods, health care and telecommunications, also applies to professional services such as those offered by CPAs and lawyers. Many firms that have acknowledged the need have been richly rewarded. Those that have embraced the need and acted on it have seen even more impressive results.

I can’t tell you how many times I’ve heard this statement: “You know, Gale, once I get in front of a prospect I have no trouble selling them!” “Well, gee,” I want to respond but restrain myself, “that’s a real surprise!”

After several years of searching, I’ve finally found a top-notch book that discusses how to innovate services – Tuned In, by Stull, Myers & Scott. It encourages the reader to listen closely to their markets for signals about what’s really on the minds of the people they serve.

It’s fair to say that CPAs have ‘gotten the memo’ when it comes to the importance and value of marketing. Telling their story to those who need to hear it – and are in a position to respond – is a concept many now understand and even embrace. But in today’s demanding marketplace, it’s not enough to market an offering; you’ve got to manage it – from incubation through birth, innovation and beyond. Sharply designed brochures, hard-hitting direct mail and interactive websites simply won’t get you where you want to go.

The more things change, the more we need to change with them. Massive shifts in market conditions are profoundly affecting our profession. But it’s not just the market that’s recalibrating. We’re also in the midst of a revolution in information gathering, which influences how our buyers think and how they make decisions.

Anybody who knows how to eat knows how to generate a lead, right? You call a banker or a lawyer, make lunch reservations at the local chop house and before you’ve digested the creamed spinach you’ve landed a hot prospect.

Ever wish you could turbo-charge your referral efforts? The need for speed has never been greater for CPAs. If your referral program is plodding along when it should be setting the pace, there’s good news: a network-building strategy that is innovative, focused and proven.Caution! This is not your father’s Oldsmobile!