Referral marketing works incredibly well for CPAs, and here’s why.
Most people enjoy being helpful. Most of us get a kick out of being able to share useful information with someone we know – especially when it’s connected to something that’s worked out well for us. (Keep in mind, however, we’re just as quick to spread the word when a service provider has disappointed us!)
Your clients will want to help you because they see themselves as being in partnership with you. Because they interact with your firm, they also see themselves as experts on your practice and what you have to offer.
So, one of the reasons referral marketing works so well is because your clients receive something from the giving process. They’re sharing what’s worked for them and being helpful to others. For many, that’s a powerful motivator.
Referrals are attractive to you, the CPA, because clients who are referred to you are your most cost-effective prospects. Once you calculate the lifetime value of a new client, you’ll see that you’re spending pennies on the dollar to attract referrals from your current client base.
In addition, clients who are referred to you will often turn out to be your best clients. They will already have an idea of what you do and the benefits of retaining your services.
Another benefit of getting referred clients is that they tend to be more loyal. If someone has taken a friend’s advice through a referral, they are less likely to switch to a new provider, because they wouldn’t want to embarrass the friend. Referral marketing is therefore the ultimate win-win solution for you and your clients.
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