june2021 - 32

FEATURE
Is a Niche Marketing Strategy
Possible for Small Firms?
By Jean Caragher
ADDING AND RETAINING new clients remains a top priority for
most CPAs and accountants. Niche marketing remains the most
effective strategy to do so. This has become even more apparent
since the pandemic. Clients in every industry have been impacted
and need solutions from CPAs and accountants with specialized
knowledge of their industries. As a leader of a small CPA firm,
you may ask yourself, " Will a niche marketing strategy work for
my firm? " The answer is " yes " if you start with these three steps.
FIRST:
CONDUCT A CLIENT ANALYSIS.
Segment your clients by SIC or NAICS
codes. Then, for each industry,
calculate the gross fees, net fees,
realization, average fees billed, average
hours billed, average billing rate, and
number of clients. Also, analyze your
client base by sales volume, geographic
location, and services provided.
Graph this information to give an
accurate picture of your client base.
This will show you in which industries
you are spending the most
time,
earning high fees, experiencing high
collection rates, offering a variety of
services - all opportunities for niche
market development. It will also show
unprofitable industries, those you
should avoid.
SECOND:
IDENTIFY YOUR CHAMPION.
Without a champion you do not have a
niche. The champion must be a person
with influence, but does not have to be
a partner. One possibility is a manager
who is interested in building his or her
future in the industry and becoming a
partner in the firm.
32 JUNE 2021 ■ www.CPAPracticeAdvisor.com
THIRD:
CREATE YOUR MARKETING PLAN.
The plan should start with your firm's
mission, vision, and core values. The
mission statement is your firm's basic
purpose, why you do what you do. The
vision for your firm is where you see your
firm in the future, including net revenue,
number of employees and offices, and
new products and services. Core values
are the essential and enduring beliefs of
your firm.
The situation analysis includes:
* Description of niche
* Description of target markets
* Growth trends
* SWOT (Strengths, Weaknesses, Opportunities,
Threats) analysis
* Client analysis
* Competitive analysis
* Current services
* New service development
Then, your goals need to be SMART
- Specific, Measurable, Attainable, Realistic,
and Time-Bound. The marketing plan
should include three-year goals for the
firm, revised annually. Each niche area
should have one-year goals, reviewed
quarterly. Specific strategies are then
identified to achieve your goals. Make
sure your goals and strategies state
the specific tasks, deadlines, and those
responsible for making it happen.
Organize your niche marketing
around:
* where you network,
* where you speak,
* where you exhibit,
* where you target your inbound marketing
campaigns,
* whom you invite to webinars,
* where you are an active member,
* where you advertise, and
* where you are published.
Finally, determine the budget necessary
to implement your marketing plan
and monitor it closely.
There is more involved with establishing
and executing a niche marketing
strategy, but these three steps will get
you started. ■
Jean Marie Caragher is president of Capstone
Marketing, providing marketing consulting
services to CPA firms. She is the author of The
90-Day Marketing Plan for CPA Firms: How
to Create the Roadmap for Your Firm's Growth
and Gear Up for Growth: The Marketing
Trends Manual for Accountants. For more
information contact her at 727.210.7306 or
jcaragher@capstonemarketing.com.
http://www.CPAPracticeAdvisor.com
june2021

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