Build your business with marketing strategy.

• Author: Scher, Kimberly

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It's no secret that business growth for individual CPAs as well as large firms often stems primarily from current client referrals. Increasing the volume and quality of those referrals will increase business. So what does marketing have to do with growing a firm's business? Isn't growth simply a matter of retaining great clients and leveraging those relationships for all they are worth?

Yes and no.

Catalyst interviewed several Ohio Society members in small and large firms throughout Ohio to determine their unique approaches to marketing and developing new business--what works and what doesn't.

THE REFERRAL-BASED APPROACH

The two primary objectives of most firm marketing programs are to increase revenues and position the firm for future growth. Referrals are always going to be a primary sales pipeline whether for an individual CPA or one of the Big 4 firms.

Lee Wunschel, CPA, partner at Lublin Sussman Group, LLP (LSG) in Toledo, estimates that up to 80% of the four-partner firm's business is generated by a low-key, referral-based approach that includes extensive relationship building through board and community service. The firm does not have a formal marketing program or a dedicated marketing staff position.

"Our firm has been around a long time. We follow the example set by our founders who focused on high-quality client service and client referrals to build a solid base of business," he said. This approach has netted the firm steady growth over the years and maintained a strong core base of business, Wunschel reports.

"The best advice I can give anyone starting a firm is to build strong relationships with universities, banks, law firms and other professional referral sources," he said. "Also, commit to serving your community through hard work and active service on boards. This allows you to become known and respected and begin building a reputation. Business just flows naturally from that you never know where a referral will come from or when."

THE COMPREHENSIVE APPROACH

Existing client referrals, however, may not support growth in new directions--most referrals are made by trusted individuals to others who share a similar financial position and have similar financial needs. Marketing can help bridge current clients to other firm services. It can also raise the profile of an individual CPA or firm among external professional referral sources such as law firms, banks, brokerage firms, professional associations and chambers of commerce. Beyond referrals, marketing directly to potential clients using computer technology and the Internet can effectively differentiate a firm in an increasingly competitive...