Thursday, August 26, 2010

How to Manage CPA Relationships

Philadelphia: “I’ve been conducting CPA workshops for CE credits for a number of years,” Mark explained with a pained expression, “but have yet to have to develop any type of referral alliance relationship.”

Are you surprised? Probably not. This is a common challenge facing financial advisors. CPAs need ongoing continuing education credits, somehow – someway, financial advisors are allowed to present specific workshops that meet the CE requirements, and CPAs attend. Although this can get you face-to-face with CPAs, it can be light years removed from developing a healthy working relationship.

Developing a healthy CPA referral alliance requires much the same strategy and tactics as romancing an affluent prospect into becoming a client. Seminars don’t make the cut, and even though CE courses can get advisors like Mark in front of CPAs, left on their own they do little in terms of managing any type of relationship.

This might seem a bit daunting at first glance, but the following is the secret sauce for managing CPA relationships (actually it’s rather simple)…

• Step 1: Create a Profile for each CPA – Here is where you begin to compile both personal and professional information. Your objective is to gather as much intelligence about each CPA that will enable you to follow-up with each on both a personal and professional level – without coming across as a bore, or worse, a broker.

There are many ways to gather this information, but essentially you want to know their areas of expertise, colleges attended, types of clients, mutual clients, marital status, spouses interests, and so on.

We have a simple profile form that our clients use to compile this new-found intelligence – but you can easily create your own. The key is to have a system you will use.

• Step 2: Ask Around – Word-of-mouth influence is the #1 tool used by the affluent and potential referral alliance partners and you want to use it carefully in your quest to gather information about a CPA you’ve targeted. Contact your mutual client, a COI or whoever is associated with the CPA and ask a few subtle questions. Much like selling to the affluent, this is an art form that requires finesse. You don’t want to come across as mechanical or overly nosey, rather you want to leave the impression that you’re naturally curious.

Think of information along the lines of; how long they have worked with this CPA, what they might know about them on a personal level (hobbies and interests), what they like best working with them, and so on.

• Step 3: Conduct Online Reconnaissance - With so much personal information available online it is foolish not to take advantage of it as you work on gathering background intelligence on your targeted CPA. According to Kevin Nichols, our resident Social Media guru, LinkedIn is your most effective tool for getting started.

Kevin suggests start by running an advanced search for CPAs in your area. Your objective is to gather information based on their profile, and at the same time you can also look for mutual connections.

• Step 4: Use the Information – Gathering intelligence is one thing, using it intelligently is another. At this stage you had best be careful. The last thing you want is to spook the CPA you’ve been working so hard to manage the relationship. You never want a CPA thinking, “How did he know that?” Ugh!

Much like asking clients and COIs questions, finesse is the key. Once again, this is an art form that requires social skills as well as sales aptitude. In essence, you will effectively manage each CPA relationship by blending both into part of your natural style. Which of course, requires the first three steps to be completed.