What is the true value of a client referral?
Today someone asked me how much I spent on online advertising, SEO and website upkeep. Because they said whatever I am spending must be working. My response….Nothing
Now the look on the persons face was priceless (sorry if you are reading this Simon….but I did have to hold in a chuckle). So I thought I would explain myself.
Now, as an Accountant running a business in what is generally deemed to be a boring and cringe worthy industry, I am competing against thousands of others (with much bigger budgets), not to mention overseas competitors (with much smaller rates). So one would assume I would be handing over dollars left right and centre to increase my online presence, improve my ranking and make sure every man and their dog know about me.
Now whilst this may genuinely work, what I have discovered in my business is that I pride myself on forging relationships with my clients. The type of clients I choose to work with. Not just anybody. I care about their business, I understand their business and I understand what their pain points are. I try to relieve those pain points and deliver a service to reduce their stress around all things financial – so incorporating financial coaching, management accounting, training and bookkeeping.
“In turn, those happy and satisfied (and now stress free) clients are in fact my biggest marketing tool”
Without me requesting, begging or paying – they are spreading the word about Healthy Business Finances and the fact it is quite possible to have a streamlined financial process in their business, and that Stacey just loves doing the stuff they hate. Problems are solved, headaches are gone and everyone is happy.
So whilst I don’t currently spend money on SEO and online advertising (I know this will change at some point), what I do spend money on is ensuring my clients know I care about them.
As a geeky numbers nerd, I give small gifts to my clients at end of financial year (as to us accountants this is a happy time so why not spread the love). I also give gifts at Christmas time as this is when most of my clients have a well deserved break.
People think gift giving is an expensive process – but let’s put it into perspective. I buy gifts that are relevant and practical (no point giving a gift nobody wants or is useless).
I support Australian or local business owners to keep the costs down and I always write a personal note (you know – with a pen, customised to my clients….not some generic unpersonalised mass produced note). Each year I spend less than $1500 in total for all of this. Spread across up to 40 clients. So the cost per client per year is less than $40. Yet each month on average I am receiving one new client from a referral.
“You don’t need to be a nerdy accountant to do the math and understand the return on investment for having satisfied clients is well and truly working in my favour”
So the moral of my story, before handing over your hard earned cash to spend on online advertising, make sure that is where your ideal client is hanging out. It just so happens that my clients want to work with a trusted advisor, so at the moment referrals are my lifeline, so this is where I am investing.