Using the same processes, the wealth management practice will be able to source new clients, often through client referrals and referrals from other professionals (for instance, lawyers). And a percentage of these new wealth management clients will also become clients for the accounting services.
To achieve these or better revenues, accounting firms need to adopt four main guidelines.
Master discovery and framing: Discovery is the process in which professionals develop a deep understanding of prospects and clients. Here, advisors must be intensely attentive and skillfully ask questions to learn about the people they are working with.
Being empathetic is also a critical component here. Not only must you understand your client, but your clients need to know you understand.
Discovery allows you to find ways to add value, and it’s usually the case that you’ll find new opportunities for both wealth management and accounting services.
If you not only know how to add value but also know how to position services and products in ways that resonate with the clients, you’ll see more business. This is known as framing. The aim is to show that a client’s interests are being best served by the wealth management and accounting services. It’s not selling. On the contrary, it means meeting client needs both because you know the clients and because you have the technical expertise to help them. It’s the process of discovery that gives you insights to make framing so effective.
Focus on client relationships, not services or products: Everything in the wealth management universe at this point is commoditized or fairly close to being so. The same can be said about accounting: Some services and products are better than others, and some professionals are better. But it’s very likely that any high-quality wealth management practice can provide the same services and products (or comparable ones) that other firms do. The most successful wealth managers, then, are not focusing on their investment strategy or platform. The most successful ones (the most successful accountants, too) recognize that it’s the quality of the relationships they have that drive their success.
If an accounting firm can build these strong relationships with clients, prospects and other professionals, they will make their wealth management practices extremely valuable and profitable—regardless of market changes. That will also translate into client referrals, even for accounting services.
Reward accountants referring their clients to the wealth management practice: Many times, accountants don’t want to refer their clients to the wealth managers at their firms. It’s easier not to. They often fear that they’ll hurt the relationships they’ve built if the wealth managers don’t deliver. What’s more, a number of firms lack incentives for their accountants to make the introductions. It’s easier for the accountant to sit back and let peers at the firm take the referral risks while he or she benefits. It’s the free rider principle in action.
If firms want their accountants to make the referrals, it’s useful to have concrete rewards attached. One good way is to offer the accountant a percentage of the additional revenue generated. Other worthwhile approaches reward accountants for the potential risks they are taking with their prized client relationships.