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The lifeblood of any accounting firm's growth strategy is the generation of new leads. But, what exactly does lead generation mean in the context of accounting? Is it equivalent to new clients? More importantly, how can accounting firms pivot their approach to lead generation to adapt to a rapidly digitizing business environment? These are some of the questions we will explore as we delve into the mechanics of lead generation for accountants.
What is Lead Generation for Accountants?
Before we dig into the specifics, it is crucial to understand the basic concept of a lead in lead generation. In short, a lead is any individual or organization that has expressed an interest in the products or services a business offers. In the context of accounting, a lead could be a small business owner looking for bookkeeping assistance, a startup seeking advice on tax planning, or even a large corporation searching for auditing services.
Lead generation, then, is the process of attracting and converting these prospects into someone who has indicated interest in your firm's services. This involves capturing their attention, engaging them, and then nurturing them to the point where they become paying clients.
According to a 2020 survey by the Hinge Research Institute, over 59% of accounting firms indicate generating leads as their most significant marketing challenge. It's clear that developing an effective, sustainable strategy for lead generation for accounting firms is no small feat.
Lead Generation for Accountants: The New vs. Old Way
Traditionally, accounting firms have relied heavily on networking, referrals, cold-calling, and advertising to generate leads. These methods, while still relevant, are increasingly giving way to more contemporary approaches. The advent of digital marketing has revolutionized the way leads are generated, even in industries like accounting, traditionally seen as more conservative.
As much as 60% of the global GDP now relies on digital communication technologies. This has resulted in an increased number of businesses searching for accounting services online. Hence, a lead generation strategy that incorporates digital techniques is no longer optional but vital for an accounting firm looking to thrive in today's business climate.
4 Low-Cost Ways to Generate Leads in Accounting Firms
As competition within the accounting industry intensifies, firms are continually seeking innovative, yet affordable ways to generate leads. Here are four effective, low-cost strategies you can leverage to increase your client base.
1. Give Something Away
People love free things, and giving something away can be a potent lead-generation tool. Consider developing a useful resource related to accounting – a tax planning guide, a whitepaper on financial management, or even a webinar on common bookkeeping mistakes.
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Ensure these resources provide genuine value, helping potential leads solve a problem or answer a question related to their finances. By offering such resources in exchange for contact information, you not only establish your firm as an authority in accounting but also capture leads to nurture into clients.
According to Demand Metric, content marketing, like giving away a valuable resource, costs 62% less than traditional marketing and generates about three times as many leads. It is not just cost-effective; it's a strategic move to position your firm as a knowledgeable industry leader.
2. Network on LinkedIn
LinkedIn is a powerful networking tool, especially for B2B lead generation. According to a 2020 survey by HubSpot, LinkedIn is 277% more effective at lead generation than Facebook and Twitter.
As an accounting firm, you can use LinkedIn to connect with potential clients, participate in relevant groups, and share content that demonstrates your expertise. You can also utilize LinkedIn's advanced search feature to target specific industries, company sizes, or job roles, making your lead generation efforts more focused and efficient.
This section concludes the first half of our blog post. We have discussed what lead generation for accountants is, how it has changed, and explored two low-cost ways to generate leads. In the next half, we will discuss building a targeted mailing list and scanning job boards as additional strategies to bolster your lead generation efforts.
3. Build a Targeted Mailing List
One of the most effective ways to nurture leads is through email marketing. However, the success of your email campaigns largely depends on the quality of your mailing list. Building a targeted mailing list, therefore, is a crucial step in lead generation for accounting firms.
Start by offering a signup form on your website. Encourage visitors to subscribe by offering them something valuable in return, such as a monthly newsletter with accounting tips or access to exclusive webinars. Remember, it's important to segment your list based on the lead's interests and needs. This way, you can send personalized emails that resonate better with your audience, increasing your chances of conversion.
According to a 2019 study by the Direct Marketing Association (DMA), for every $1 you spend on email marketing, you can expect an average return of $42. This high ROI makes building a targeted mailing list a cost-effective strategy for generating leads.
4. Scan Job Boards
Job boards can be a goldmine for leads if used correctly. Businesses that post job listings for finance or accounting positions might be growing and could need the services of an accounting firm. Monitor job boards regularly and reach out to these potential clients, offering your services.
Introduce your firm and explain how you can help them manage their financial growth or alleviate the burden of additional accounting tasks. This proactive approach shows potential clients that you are keen to support their growth, fostering a relationship right from the start.
Kevin Mitchell, CPA
Senior Manager and CPA with over 20 years of experience in accounting and financial services, specializing in risk management and regulatory compliance. Skilled in managing audits and leading teams to deliver exceptional services. Proud father of two.
References
2020 High Growth Study Executive Summary - Hinge Marketing. (n.d.). Hinge Marketing. https://hingemarketing.com/library/article/2020-high-growth-study-executive-summary
Demand Metric. (2020). The State of Content Marketing Survey. https://www.demandmetric.com/content/the-state-of-content-marketing-survey
