Client Development Mastery HK Alliance November 2015 Presented by Art Kuesel

Art Kuesel, President Keynotes, Presentations, Workshops on Growth EXPERTISE (Cont.) Keynotes, Presentations, Workshops on Growth Growth Plan Development/Implementation Managing Partner Coaching Sales & 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 EXPERIENCE Sales Executive 3 years inside $60M CPA firm 5 years inside $25M CPA firm 6 years at PDI/Koltin Consulting 2.5 years at Kuesel Consulting EXPERTISE Leadership and Sales Coaching Sales/Marketing Training

Today’s Workshop Top Killers and Thrillers Building Trust Developing Breadth and Depth Recognizing Clues & Triggers Cross-Selling Table Activity & Group Discussion 4

Top Killers & Thrillers

My Client 2012 – 2015 R.I.P

Top Ways to Kill Client Relationships Not being proactive with ideas that can help save the client money, create greater efficiency, reduce risk, reduce liability, etc. Telling a client what you think they want to hear vs. what they really need to know Being satisfied with a compliance relationship Surprising the client.

Top Ways to Kill Client Relationships Not having a relationship with multiple owners when applicable and appropriate Blaming others Repetitive mistakes Poor internal communication among team Not knowing the COI Not understanding expectations

My CPA is AMAZING!

Top Ways to Thrill your Clients 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 Connect often take client to lunch, coffee, drink, dinner Add value to the relationship often Know what is important to them professionally (know their strategic objectives, plans, goals)

Top Ways to Thrill your Clients Know what is important to them personally! (family, friends, vacations, passions) Seize opportunities that arise from this knowledge Accommodate their schedule Know and have relationships with their circle of influence Be hyper responsive, acknowledge questions and inquiries quickly UNDER promise and OVER deliver

Trust Building

Building Blocks of Trust in our World Clients need to like you Clients need to respect you Clients need to have repetitive and positive experiences with you

Building Blocks of Trust in our World 1. Clients need to like you Find commonalities Demonstrate active engagement in the relationship Show loyalty – acknowledge contributions of others Right wrongs – “service recoveries”

Building Blocks of Trust in our World 2. Clients need to respect you Having broad or deep knowledge in subject matter Be truthful – even when its hard Be transparent – err on the side of disclosure Introduce others of value to them – be a connector Be a great communicator

Building Blocks of Trust in our World 3. Clients need to have repetitive and positive experiences with you! The “Amazon” Concept Clients need several consecutive experiences with positive results Under promise and over deliver again and again

Trust Scale

Developing MORE and DEEPER Relationships

Firm A Firm A Partner Company Owner

Firm B Firm B Client Partner Manager HR Director ASG Lead Owner Owner’s Daughter Operations Leader Office Manager

Firm A Firm A Partner Company Owner

Firm B Firm B Client Partner Manager HR Director ASG Lead Owner Owner’s Daughter Operations Leader Office Manager

Some Benefits of Relationship Breadth Insulates against unfortunate accidents Creates a stronger bond/greater stability in the relationship Increases cross-selling opportunities Fuels more referrals not only in present state but also in the future when someone leaves the client Drives greater long-term retention Can increase profitability SO MAKE MORE FRIENDS!

Breadth: The Client Circle of Influence

Firm B Firm B Client Partner Manager HR Director ASG Lead Owner Owner’s Daughter Operations Leader Office Manager

Common COI relationships we should seek connections with include: Banker Attorneys Corporate Trust/Estate Employment P&C Insurance TPA Industry Consultants Financial Advisor Key Vendors Key Clients Boards of Directors Committees – Tax, audit, internal audit Real Estate Broker Bonding Agency (Const) VCs 26

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: Trust is usually higher Fuels more referrals Drives greater long-term retention Insulates you against mistakes SO MAKE MORE FRIENDS!

Clues and Triggers

Defining Clues and Triggers Creating greater breadth and depth will expose 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 30

Recognizing Clues/Triggers Four Steps: KNOW YOUR SERVICES Be Actively Engaged in the Relationship. (Have your Antenna Up!) Engage in Conversation ACT & Suggest Next Steps

Common Clues You May Hear I wish I could… I’m having trouble… This is a top challenge… Our competition is… I’m concerned about… Are you seeing this with your other clients?

Triggers You May Encounter Recent sale, merger, or divestiture New facility, building, land, physical expansion, etc. New division, product or service line, niche, focus Owner retiring, succession to new generation Expansion into new markets Rapid growth/decline in number of employees Significant changes in cash flow, payables, receivables, profit Addition or subtraction of a key competitor

What to do when you hear a clue or recognize a trigger Engage in the Conversation How is that affecting you? 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?

What to do when you hear a clue or recognize a trigger ACT 1) 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?

Clues/Triggers Clue/Trigger CPA Service Business Valuation

SALT & International Tax Clues/Triggers Clue/Trigger CPA Service SALT & International Tax

Succession & Exit Planning Clues/Triggers Clue/Trigger CPA Service Succession & Exit Planning

Clues/Triggers Clue/Trigger CPA Service Cost Segregation

Clues & Triggers Clue/Trigger CPA Service Offering 1. CFO is looking to hire a controller 2. Controller quit 3. CFO quit 40

Cross-Selling

If you are bringing new ideas to your clients you are being… Proactive Not proactive

If you have a compliance relationship, you are likely being proactive with… Higher value services Lower value services

The more opportunities you have to delight your clients with high value services… The more likely you are to receive referrals The less likely you are to receive referrals

When clients switch CPA firms a common complaint is… My firm was just too proactive My firm wasn’t proactive

Being proactive and cross-selling creates.. Stronger client relationships Weaker client relationships

Who is generally easier to sell to? Client or Non-Client

What percentage of your annual growth can come from cross-selling? 5% 15% 25% 33% 50% or more

Art, do my clients really want me to approach them with new services? 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) 68, 36 49

Art, do my clients really want me to approach them with new services? 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) 50

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

The Cross-Selling Matrix SAMPLE CPA FIRM   Client Service Matrix Client Name: Client Number: Engagement Partner: Engagement Team Members: Service Areas Yes In discussion Not 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 54

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 55

The Cross-Selling Process 1. ID a “top” relationship with general opportunity for growth 2. Review service offerings 3. Complete the notes section, focusing on opportunities 4. Build your action plan for each opportunity identified 5. Plan your approach with each client 56

Table and Group Discussion

Table Discussion [A] Share your most effective client development techniques amongst your table: What works well? Why does it work? Is it individually driven or institutional in nature? Why don’t we do more of it? 58

Client Development Plan [B] Create a development plan right now for your top five clients! 59

Thank you! For tools, resources, and a monthly blog subscription on marketing, sales, and growth topics go here: www.kueselconsulting.com/HKA Or contact Art: art@kueselconsulting.com 312.208.8774