Becoming a Trusted Advisor to your Clients DZH Phillips July 2015 Presented by Art Kuesel.

Becoming a Trusted Advisor to your Clients

DZH PhillipsJuly 2015

Presented by Art Kuesel

Art Kuesel, President

EXPERIENCE

Sales Executive3 years inside $60M CPA firm5 years inside $25M CPA firm6 years at PDI/Koltin Consulting2.5 years at Kuesel Consulting

EXPERTISELeadership and Sales CoachingSales/Marketing Training

EXPERTISE (Cont.)Keynotes, Presentations, Workshops on GrowthGrowth Plan Development/ImplementationManaging Partner CoachingSales & Marketing Recruiting

STREET CRED→Top 100 Most Influential Person in Public Accounting: 2014→In-house and external experience→Clients include scores of T250 Firms including a third of the T100→Frequent writer and blogger for Accounting Today→Accomplished speaker and presenter on growth trends

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Today’s Workshop

1. What’s a Trusted Advisor?2. Top Client Relationship Killers and

Thrillers3. Building Trust with Clients4. Developing More and Deeper

Relationships with your Clients (and their COI)

5. Recognizing Clues & Triggers6. Cross-Selling

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What’s a Trusted Advisor?

Define it!

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Characteristics Include

First person who is asked for help Respected for knowledge/opinion Reliable Responsive Likable! ____________________ ____________________ ____________________

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How can we get there?

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Top Client Killers

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DZH Phillips Client2012 – 2015R.I.P.

Top Ways to Kill Client Relationships

1. Ignoring your gut when it tells you that something isn’t right with the relationship or client(ask the tough questions and have open and honest discussions when necessary.)

2. Telling a client what you think they want to hear vs. what they really need to know

3. Not working well or being responsive to internal accounting staff, owners, or any other party

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4. Not understanding billing needs, fee tolerance of client & doing too much too soon and ignoring client budget

5. Not having a relationship with multiple owners when applicable and appropriate

6. Being perceived as taking sides between owners/parties or multiple generations

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7. Blaming others: “can’t get this job out of QC”; mail room sent return to wrong address, having staffing challenges, deadline compression, etc.

8. Being satisfied with a compliance relationship

9. Not being proactive with ideas that can help save the client money, create greater efficiency, reduce risk, reduce liability, etc.(the client comes to you with more ideas than you bring to them)

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10.Making repetitive mistakes, being late with deliverables, last minute deliverables, being late for meetings, using electronics during client meetings, bad body language such as poor posture and a weak handshake

11.Poor internal communication among team

12.Fail to acknowledge a question or inquiry

13.Not knowing and having a relationship with the client circle of influence

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The Number one Way to Kill a Client Relationship?

Not knowing or understanding the expectations of the client!

Top Client Thrillers

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DZH Phillips is AMAZING!

Top Ways to Thrill your Clients

1. Taking client to lunch, coffee, drink, etc.

2. Seize opportunities that arise from client life situation (marriage, divorce, anniversary, birthday, birth of child)

3. Do things without charge that add value and “claim” credit

4. Meet on nights, early am, weekends, whatever is necessary to accommodate their schedule

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5. Remind them about due dates

6. Be proactive with ideas that can help save the client money, create greater efficiency, reduce risk, reduce liability, etc. and quantify the value of those ideas

7. Know what is important to them professionally (know their strategic objectives, plans, goals, etc.)

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8. Know what is important to them personally!

9. Know and have relationships with their circle of influence (banker/financer, attorney, professional advisors)

10.Be hyper responsive, acknowledge questions and inquiries quickly

11.Deliver on-time every time

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12.Send them notes/emails with articles, newsletters, and other items that show that you are invested

13.Make the client feel important in front of his/her family (tickets to special events)

14.ID future problems, help save them from themselves

15.Take responsibility for what goes wrong 21

The Number One Way to Thrill a Client?

Under Promise and Over Deliver!

Can you thrill one client a week this summer?

Who is it and what will you do over the next several weeks?

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Action Plan Development [A]

Building Trust with Clients

Trust is Scarce!

• We are taught NOT to trust (if it sounds too good to be true, it probably is)

• Mother taught us to be AFRAID of strangers

• We are bombarded with communication and our personal filter CANNOT discern what’s accurate and what is not

• Look at the rise of Yelp, TripAdvisor, and other “independent” ratings sites!

• Trust takes a long time to build but can be shredded in one interaction

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The Speed of Trust – Stephen Covey

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Three Basic Building Blocks of Trust

1.Clients need to like you

2.Clients need to respect you

3.Clients need to have repetitive positive experiences with you

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Building Blocks of Trust

1: Clients need to like you!• Find commonalities, exhibit care and concern, demonstrate active engagement in the relationship

• Show loyalty – acknowledge contributions of others

• Demonstrate respect – be genuine (it’s easy to tell)

• Right wrongs – “service recoveries”

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2: Clients need to respect you!• Having broad or deep knowledge in

subject matter

• Introduce others of value to them – be a connector

• Talk straight – be honest and call things what they are

• Create transparency – be open and authentic and err on the side of disclosure

• Be a great communicator29


3: Clients need to have repetitive positive experiences with you!

• Understand where your relationship is and work to deepen it – go from a B- to an A-

• Look long-term in your scope (trust is not generated overnight)

• Clients need to feel that you have their best interest in mind at all times

• Clients need several consecutive experiences with positive results

• Clients need to see you add value to the relationship without expecting

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Do you need to build or establish more trust with one or more clients?

Who is it and what will you do?

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Action Plan Development [B]

Relationship Breadth and Depth

Relationship Breadth: Firm A

Partner

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Firm A Client

Generation 1 Owner

Relationship Breadth: Firm B

Partner

Manager

IT Consultant

Accounting Services

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Firm A Client

Generation 1 Owner

CFO

Generation 2 Owner

Office Manager

Relationship Breadth: Firm A

Partner

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Firm A Client

Generation

Relationship Breadth: Firm B

Partner

Manager

IT Consultant

Accounting Services

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Firm A Client

Generation 1 Owner

CFO

Generation 2 Owner

Office Manager

Benefits of Relationship Breadth

Relationship Breadth:

Insulates against unfortunate accidents

Creates a stronger web between us and our clients

Increases cross-selling opportunities

Fuels more referrals

Drives greater long-term retention

What else?

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Common types of relationships we should seek connections with

Banker/Financier

VCs

Attorney – Corporate, Trust/Estate, Employment

Boards of Directors

Committees – Tax, audit, internal audit

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Consultants/Professional Advisors

P&C Insurance

Real Estate Broker

Bonding Agency

Key Vendors, Top Clients

Who else?

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Asking for introductions to these people

1. Can you help me?

2. I’d like to serve you better… In order to do this, I need to have stronger relationships with your <insert types of contact here>. This could enable <insert advantage here>. Plus, if you know and trust them, I am sure they would be someone that I could benefit from a relationship with.

3. How have you done this?

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Relationship DEPTH: Would you fire your friend?

Q: In general, the stronger the relationships we have with our clients, the (easier/harder) it is to leave us.

It’s much easier to fire your accountant, than it is to fire your friend!

Benefits of Client Friendships:

Fuels more referrals

Drives greater long-term retention

Increases trust

Insulates you against mistakes

Accelerates your trusted advisor status

What else?

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Do you have relationships (breadth or depth) you need to target and build?

Who and where? When will you get it done by?

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Action Plan Development [C]

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Recognizing Clues and Triggers

What are your clients telling you without telling you?

Defining Clues and Triggers

If you’ve done a good job developing your client relationships, you will be in an excellent position to hear and observe clues and triggers

Clue: Something a client says that indicates there is a need for an additional service

Trigger: An event that happens with a client that triggers the need for an additional service

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Which firm Drives more Cross-Selling Growth?

FIRM A / 30 People

3 people who recognize and understand how to capitalize on clues and triggers

27 remaining people not really engaged in the marketing and sales process

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Which firm Drives more Cross-Selling Growth?

FIRM B / 30 People

30 people who recognize and understand how to capitalize on clues and triggers

0 people unaware of how they can help

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Recognizing Clues/Triggers

Four Steps:1.KNOW OUR SERVICES

2.Be Actively Engaged in the Relationship. Have your Antenna Up!

3.Engage

4.ACT

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Common Clues You May Hear

Clues… I wish… I’m having trouble with… I can’t seem to… Our competition is… I’m concerned about… This trend is scaring me…

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Triggers You May Encounter

Triggers Recent sale, merger, or divestiture New facility, building, land, physical expansion, etc. New division, product or service line, niche, focus Owner retiring, succession to another generation, ESOP Physical expansion into new markets Rapid growth in number of employees Significant changes in cash flow, payables, receivables,

financing, profitability Addition or subtraction of a key competitor

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What to do when you hear a clue or recognize a trigger

EngageHow is that affecting you?How does that make you feel?What are the biggest challenges that come along with

that?What do you see as the opportunities that surround

that situation?What are you doing about it?

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What to do when you hear a clue or recognize a trigger

ACT1) I believe we’ve helped other clients with similar challenges, can I introduce you to XYZ?

-or-2) I believe we can help you, but I’m not the expert on it. Can I get back to you later today or tomorrow with more information?

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Detour Approach

1. KNOW OUR SERVICES2. Be Actively Engaged in the Relationship. Have your

Antenna Up!3. Engage

4. Bring the information back to the office and talk with the relationship partner about what you heard.

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…HAVE a strong relationship!

…KNOW the services we offer!

…KNOW what’s important to your clients!

…ENGAGE when appropriate!

…DO something with the information!

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PS. This Only Works if you…

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Let’s go through some common clues and triggers and their corresponding services…

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Uncovering Opportunities

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Clues & Triggers

Clue/Trigger Potential Opportunity

1. CFO is looking to hire a controller2. Controller quit3. CFO quit

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Clues & Triggers


1. Controller complains about reporting capabilities from current financial software and that current systems don’t talk to each other

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Clues & Triggers


1. Acquisition or divestiture

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Clues & Triggers


1. New facility/building2. New international venture3. New funding or investors4. Retirement or succession

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Did you recently hear a clue, or observe a trigger that would indicate an opportunity?

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Action Plan Development [D]

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Cross-Selling as a Retention Tool and Key Benefit to the Client

Cross-selling = greater client retention?Clients benefit from Cross-selling?

If you are bringing new ideas to your clients you are being…

a) Proactive

b) Not proactive

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With an existing compliance relationship you are likely to be cross-selling…

a) Higher value services

b) Lower value services

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When clients switch CPA firms a common complaint is…

a) My firm was just too proactive

b) My firm wasn’t proactive

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Cross-Selling creates..

a) Stronger client relationships

b) Weaker client relationships

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Who is generally easier to sell to?

a) Client or

b) Non-Client

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What percentage of annual growth can come from cross-selling?

a) 5%

b) 15%

c) 25%

d) 33%

e) 50% or more

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The more opportunities you have to delight your clients with high value services…

a) The more likely you are to receive referrals

b) The less likely you are to receive referrals

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Art, do my clients really want me to approach them with ideas?

When asked if buyers had an interest in one or more additional services from their current firm XX% responded YES…

…but when asked if buyers understood the full range of services offered by their current firm only XX% responded YES.

Implication: We are missing out on valuable opportunities to educate our clients about our services, and cross-sell additional business

(Source: Hinge Marketing)

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Art, do my clients really want me to approach them with ideas?

When asked HOW the client would prefer to learn about a new service that could benefit their business, XX% responded they would prefer a face-to-face meeting with senior leadership to discuss recommendations

Implication: Our clients want

us to make recommendations

that will help their business

(Source: Hinge Marketing)

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Why is Cross-Selling Absolutely Critical to Long-Term Client Relationships?

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Rewards/Risks: Compare for Yourself

RewardsWe build great relationships with clients to enable cross-sellingA significant component of your growth can come from cross-sellingIt’s easier to sell to current clients than to prospectsBringing ideas to the client shows you are proactive and interested in their successMost often we are INCREASING the value we can offer through selling high-value servicesMore high value services = more referrals due to outstanding resultsMore services = greater retention and profitability

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Rewards/Risks: Compare for Yourself

RisksNot cross-selling creates a perception of not being proactive

Clients expect us to offer suggestions that can help them – not cross-selling is a disservice

Most clients don’t know our full capabilities anyway

Not cross-selling reduces referrals

Not cross-selling means we may only have a compliance relationship

Not cross-selling reduces long-term retention and profitability

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Kuesel Consulting Inc.

Cross-Selling: Process and Tools

The Cross-Selling Matrix

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DZH Phillips Client Service Matrix

Client Name: Client Number:

Engagement Partner:

Engagement Team Members:

Service Areas Yes

In discussio

nNot

Applicable In-house Declined

Assurance Services

Audit

Review

Compilation

Internal Controls Review

Agreed-upon Procedures

Financial Projections

Tax Compliance

Tax Return Preparation (personal and business)

Integrated Tax and Investment Advisory Planning

IRS Issues

Sales and Use Tax Consultation

FASB 109

State Tax Issues (multi-tax)

Employee Benefit Plan Consultation

Tax Planning

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The Cross-Selling Matrix is…

An assessment of opportunities based upon the clients’ current and potential services that allows us to:

PLAN our relationships with our best clients

Be PROACTIVE with service offerings

Create greater stickiness and client retention

Deliver greater value to clients

Improve profitability

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Process1. ID a “top” relationship with general opportunity for growth

2. Review service offerings, select “yes=being delivered” or “In discussion” or “not applicable” or “in-house” or “declined”

3. Complete the notes section, focusing on opportunities

4. Build your action plan for each opportunity identified

5. Plan your approach with each client80

The Cross-Selling Process

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Cross-Selling: Starting the Conversation

Cross-Selling Convo Starters…

Clues/triggers:Any reverberation of a clue/trigger is a great entry point for cross-selling!

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Cross-selling convo starters…

Service/Trend based questionsHow are you managing internal controls?Are you moving any of your systems, programs, processes to the cloud?How are you planning to implement the ACA?Are you considering expanding cross-border?What else?

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About their business based questions“What’s in your annual business plan this year?”“What’s been keeping you up at night?”“What key goals are you seeking to accomplish this year?”What else?

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About them based questionsHow did the recession change your plans for retirement?What are the key drivers for you in succession planning?How are you planning for college savings for children/grandchildren?What else?

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Do you have a client you’d like to take through the cross-selling matrix? Do you have a client with a need you need to talk to them about?

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Action Plan Development [E]

Place client logo here

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We must WORK our Plan to Succeed!

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Thank you!

For tools, resources, and a monthly blog subscription on marketing, sales, and growth topics go here:

www.kueselconsulting.com/DZH

Or contact Art:

[email protected]

312.208.8774

Becoming a Trusted Advisor to your Clients DZH Phillips July 2015 Presented by Art Kuesel.

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Transcript of Becoming a Trusted Advisor to your Clients DZH Phillips July 2015 Presented by Art Kuesel.