1. Welcome to winning clients the Nexia way Audit forum - 15 October 2008 Barbara Hamilton, Smith & Williamson

2. The programme “No matter how large or small the member firm, winning and maintaining clients is one of the keys to a successful practice. This session, presented by a marketing professional, follows on from the optional session at the 2007 forum and will provide members with practical advice on how they can win and retain clients the Nexia way.”

3. What we discussed in Dublin Why people buy audit services What clients are looking for Decision making in large organisations Best practice bid management How to sell Nexia International What will win and lose a tender Coordinating pitches internationally Frameworks we can use to win

4. What we’re going to discuss today Why buy Nexia Different approaches to winning new clients What Nexia is and isn't What do we want to say about Nexia Who we are competing against What a client wants and what Nexia delivers The questions clients might ask What we believe the Nexia way is

5. Why buy Nexia? What do you think?

6. Why buy Nexia? - What we think We all know each other Mutual obligation to deliver outstanding service Personal style Because it is a membership we have chosen/elected to help each other Flexible model that can be tailored to the client (all depends on what is important to the client)

7. The sales process PromotingProspecting Winning the work Developing & retaining clients Targeting the right client. Finding the influencers Building your profile and raising awareness Building relationships and winning the work Developing and retaining clients

8. The different approaches Concern for making the sale Concern for the client 9 1 91 1/1 The order taker Focussed on meeting immediate need. Does not seek to challenge or add any additional value. Low level support, clients will become dissatisfied as there is no demonstration of learning and understanding their needs.

9. Concern for making the sale Concern for the client 9 1 91 9/1 The pressure salesman Too interested in pushing products or services to really listen to the client The stereotypical sales man - can appear dishonest If very persuasive, can be dangerous if the service is unnecessary or inappropriate What some people fear they will be perceived as if they try and introduce other services

10. Concern for making the sale Concern for the client 9 1 91 1/9 The client’s friend Too interested in a good relationship to develop the client Uncomfortable and compromised having to introduce other services If not monitored, can create unprofitable clients Clients can use the client’s friend to get free advice which they are well aware they should pay for

11. Concern for making the sale Concern for the client 9 1 91 5/5 The compromiser The more client relationships a person manages the less able they are to look for opportunities Inevitably, as a firm or client base grows, clients will fall in to this area. Aware of duty to client and organisation, so will sell when necessary, but will not be able to actively seek opportunities to help the client and the firm

12. Concern for making the sale Concern for the client 9 1 91 9/9 The problem solver Seen as a trusted adviser Must understand: the client, the wider issues that trigger new work and your own expertise Actively seeks opportunities to introduce other appropriate services Client is comfortable they are well informed, and receiving the best advice Firm is making the most of opportunities to develop the relationship Most profitable and effective role

13. The different approaches Concern for making the sale Concern for the client 9 1 91 5/5 The compromiser 9/1 The pressure salesman 9/9 The problem solver 1/9 The client’s friend 1/1 The order taker

14. If we want to influence others we need to demonstrate Trust CredibilityIntegrity Rapport Being interested in the client Finding something in common Knowledge and expertise Confidence and conviction Honest and open Self-effacing and vulnerable

15. The sales process in terms of Nexia is Helping a client to buy Finding out what they need Discovering how Nexia can help Helping them to choose Nexia Be honest if Nexia is not the right choice.

16. What is it that you are selling?

17. What Nexia is and is not Nexia is A membership organisation of accountancy firms of similar quality around the world An educational resource for its members A commercial network enabling referrals, relationship-building and introductions between its members Nexia is not An accountancy firm A regulatory or legislative body Liable for the behaviour of its members A charity or not-for-profit organisation

18. What members are saying about Nexia How do you talk about the network to others? What do you say?

19. What do we want to say about Nexia Work with us and you’ll get consistently high quality service across the network You will be treated well regardless of which firm you work with most We will talk to each other and discuss your objectives so that you don’t waste time explaining yourself Each firm will use its local knowledge to help you

20. What would that mean to clients Confidence that they can rely on us wherever they work with us and they will be treated well across the network Knowledge that information the client provides will be shared within Nexia so that the client won’t need to brief each Nexia firm unnecessarily The client can benefit from local knowledge and a personal relationship

21. Who are you competing against? Anyone else who can meet the same need –Big four –Other networks – BDO, GTI –Other ‘global’ firms – BDO, GTI –Local firms –A combination Perception is reality?

22. Remember Clients will not know as much about Nexia as you do, they won’t necessarily understand –The network model –How international assignments work –The issues or problems that can occur It is your job to manage their expectations

23. What a client wants and what Nexia delivers

24. You need to find out from the client Their understanding of the situation Their expectations from an adviser Their objectives

25. We need to help them make the right choice Clients may not know what they want What they want can and will change We can help them explore their options We can keep in touch and check regularly what a client’s objectives and understanding are

26. Clients want a lot of different things Someone who understands them A solution to a problem People they can work with, a relationship To know what they are paying for Advice that is accurate and good quality Some consistency of approach A central point of contact that can commit resources worldwide (1)

27. Clients want a lot of different things The same quality service worldwide To know what to expect Direct commercial benefit from the appointment To be able to contact the people that can help them Not to be asked the same questions twice An adviser who will do what they say they will do To deal with the same people over time (2)

28. How do you find out what they need? Ask

29. Research shows: The client talks more than the adviser Adviser ‘asking’ is higher than ‘telling’ Ratio of 3:1 (asking to telling) Talk too much Don’t ask enough questions When seeking to win work: However, most people:

30. The conversational style TELL My ideas and suggestions I tell you facts and features about me and my firm It’s my voice you hear - and maybe you get a chance to talk ASK I ask questions and clarify your answers I ask for your ideas and maybe add to them I want to know about you You do the talking

31. The three most important client needs (we think) are People they can work with, a relationship To be able to contact the people that can help them The same quality service worldwide

32. Strengths & weaknesses What is it about who we are and how we might appear that might be strengths and weaknesses for Nexia against what clients want

33. Group exercise In groups, discuss: 1.Whether you believe that for Nexia this is a strength or a weakness 2.What do you think those less familiar than you with Nexia would believe are strengths or weaknesses? 3.If someone perceives these qualities as a weakness or something that we might not be able to deliver, what can you do, or say, to change that perception?

34. What do you think? Whether you believe that for Nexia this is a strength or a weakness Those less familiar with Nexia would believe are strengths or weaknesses What can you do, or say? People they can work with, a relationship To be able to contact the people that can help them The same quality service worldwide

35. How to manage perception gaps In order to alter a misperception of what Nexia can do: You need to discover what the client’s understanding is Whether they need what they think they need Help educate them on the pros and cons of what Nexia can and cannot do It is important that people know what they’re buying Some perceptions you will be unable to change e.g. Big 4

36. Big Four vs. Nexia Big Four Lots of subliminal messages that it’s one firm and a universal approach –Signage –Letterheads –Office layouts –Reporting templates Nexia Lots of subliminal messages that it is not one firm, and not a universal approach – Branding – Letterheads – Office layouts – Reporting templates

37. What clients expect A business model like their own One bill for all services Shared liability across borders Someone who will take responsibility and coordinate all the services Consistent quality in every country Each country to share information

38. The questions clients might ask Who do I sue if it all goes wrong? Can you produce bills in any currency? How do I know that I am getting the same quality? If I am your client, does that mean I can get the benefit of the value-added services offered by another Nexia member or do I have to be their client too? Do I have to use all Nexia firms or can I pick and choose a combination? How do you deal with conflicts of interest? Is there one engagement letter for Nexia or do I have to deal with one in each country? What if I do not like the client service partner in one office, who do I talk to about it?

39. How to answer difficult questions Break into small groups (no more than 5 people) Each write down the worst question you can imagine being asked by a client or potential client in a selling situation such as a pitch. Then swap with someone else and come up with the ideal answer and write that down separately. Practice asking and answering the questions.

40. What is the Nexia way? Great people delivering a consistently high quality service across the network Treating each other and clients well regardless of which firm you work with most Talking to each other and discussing our clients’ objectives so that they get a consistent experience and do not waste time explaining themselves A collection of unique firms who use their own local knowledge to help their clients

41. Welcome to winning clients the Nexia way Audit forum - 15 October 2008 Barbara Hamilton, Smith & Williamson