Bundling services: a critical piece in the marketing puzzle.

• Author: Waugh, Troy

Proactive accounting firms are finding competitive advantages in today's volatile market by providing an ever-widening array of client-focused services. Millions of dollars are being invested each year in training CPAs to deliver new services. Organizations such as the AICPA, Practice Development Institute, Quantum Alliance, Results Accountants Boot Camp, and state societies are busy training CPAs to offer and deliver a plethora of new services.

Within the last decade, CPAs have developed expertise in investment and insurance services, tax-sheltered products and services, business valuation, expert testimony, corporate reorganization, and dozens of other services. But, according to Art Bowman, editor and publisher of Bowman's Accounting Report, "More than 75% of accounting firm revenues are still derived from traditional services [such as] audit, accounting, bookkeeping, and tax compliance services."

Overcoming Reluctance

Although accounting firms, both large and small, have invested in new-services training, CPAs are reluctant to offer these new services to clients. One of my clients invested more than $30,000 and nearly three years in getting a partner trained and qualified to provide business valuation services, only to learn that she wouldn't mention her skills to her clients and business referrals. Others have invested similar amounts and time, only to learn that partners wouldn't refer the newly trained and qualified partner's services. Many partners today find it challenging to work beyond their own service silos to provide clients with much-needed value-added services.

"The most important issue facing the accounting profession is to continue to expand our service offerings from traditional compliance services to high-impact growth and profitability services," said Allan Koltin, president of Practice Development Institute. Deena Katz, chair of Evensky Group said, "Accountants will be challenged to add services to their practices that will ultimately allow them to provide a one-stop shopping experience to their clients. The consumer needs have shifted. Consumers want to work with a trusted adviser who will quarterback all their needs."

Why is it that when clients demand more services, CPAs train to deliver those services, but the delivery of expanded services progresses at a snail's pace? What is the missing piece in the puzzle? Our work has discovered that marketing is the missing piece in most firms, and that bundling of services is...