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ADP LUNCH & LEARN CPE PROGRAM

Value-Added Products and Services: Consultative Selling and Cross-Selling

Adapted for CPE accreditation by SmartPros Ltd. (www.smartpros.com) with content development and review by the Selbst Group (www.selbstgroup.com).

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Today’s Agenda

CPE PresentationGroup Discussion on Review QuestionsReview of Program Reference MaterialReview Instructions to Complete Course on ADP’s

Accountant Web site


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Today’s Objectives

After today’s presentation, you should be able to:Understand industry trends in providing value-added

products and servicesEstablish and retain clients through consultative selling

techniques Implement the cross-selling process as part of your

standard client communicationsGrow your practice through cross-selling value-added

products and services


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Overview of Today’s Presentation

The difference between products vs. servicesTrends: The Multiple Disciplinary PracticeGrowing your firm through value-added servicesBuilding value-added services through outsourcing “Consultative selling” for the professional services

industryCross-selling techniques for growing your firm


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Products vs. Services

Statement Provided by Author for Group Discussion:

Professional service businesses are generally built around the billable hour. TIME is your product. TIME, however, is a physical constraint. Imagine this…If you could personally bill $1,000 an hour for 40 hours over 52 weeks, you’d generate roughly $2 million in revenue a year. How many of us can do that? Products, on the other hand are more conducive to scale, driven by demand and availability. You build a widget once and then duplicate it. Every widget you sell has a profit margin. The more widgets you sell, the more revenue you generate.

Group Discussion Question:

Do you fee you are bound by the “physical constraint” of the billable hour, and if so, why?


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Basic Economics…

Basic Economics of Revenue and Profit Growth

1. Cut expense to provide existing services

2. Raise prices to existing clients

3. Cross-selling additional service to existing clients

4. Acquire more clients

KEY POINT: Cross-selling to existing clients is easier and less costly than acquiring new ones.


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The Multiple Disciplinary Practice…

Looking at the Big Four The Big Four utilize a wide array of value-added servicesSome offerings may be emulated on a smaller scale

KEY POINT: Even though you may service a much smaller market or client base, you still may see some areas you can emulate on your own scale that might be valuable in growing your small- to medium-sized practice.


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PricewaterhouseCoopers


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Deloitte & Touche


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Ernst & Young


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KPMG


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The Multiple Disciplinary Practice

The Multiple Disciplinary Practice is considered the pinnacle of value-added services

Professional services are inherently relatedThe Multiple Disciplinary Practice offers instead of refersValue-added services can be arranged to fit your needs

Co-engagementReferringOutsourcing

KEY POINT: Your role as THE Trusted Advisor puts you at the center of this circle in servicing your clients. Of course, you choose the extent of your service offerings, and the manner in which you deliver such offerings.


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Value-added Services…

Value-added Services for the Small- to Mid-Sized CPA FirmFinancial planning and asset managementPayroll, retirement, and benefit solutionsHR servicesLegal services Insurance servicesFraud consultingValuationTechnology consulting and implementation

KEY POINT: These are all areas where you can find either a CPA-branded solution, a co-engagement partner, a referral partner, or an outsource partner that will enable you to offer such solutions to your clients.


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Potential Benefits…

Outsourcing or Referring…Allows you to focus on OTHER revenue opportunitiesCan broaden and increase the number of clients you can

service because most outsourcing is SCALABLE.Gives you access to the latest, greatest and most

expensive technologies Can provide complete, turnkey solutionsUsually involves a controlled upfront investmentOften comes with less riskCan provide growth with a predictable ROI


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Examples…

Examples of Outsourced SolutionsRetirement servicesBenefits administration servicesPayroll/payroll tax administration Time and attendance solutionsState unemployment insurance managementWorker’s compensation insurance


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Selling Value-added Services

Value-added services alone won’t provide growthConsultative selling techniques are key to the

professional services industryUsing consultative selling techniques to cross-sell

products/services


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Attributes of Traditional Selling

Pushy – “I’m going to tell you what you need.”

Aggressive – “You are making a mistake if you don’t do this.”

Close the deal – “What is it going to take to get you to buy this right now?”

Transaction focused – “Thanks for your money. Don’t call me unless you want another

one.” Take it as-is –

“Sorry if it’s not right for you, it’s all we have.”


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Attributes of Consultative Selling

Mutually beneficial relationship – “We both benefit from give and take.”

Built on trust – “You’ve taken care of me in the past. I trust your judgment.”

Client advocacy – “I’m on your side. I’ll fight my own company for you.”

Ongoing contact with timely follow-up – Frequently touching bases, and always following up meetings

with a summary of tasks and deadlines.Focus on the client’s longer term goals –

“I’ll pass on the sale today for a better opportunity tomorrow.”Custom-tailored solutions to client needs –

“If it doesn’t meet your needs out of the box, I’ll customize it to meet your needs.”


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Benefits of Consultative Selling

View challenges from same viewpointBetter investigation of client’s business modelMore opportunities to cross-sell and cross-refer Less cold callingGet opportunities to “match best price”Loyalty makes it harder for clients to walk away


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Roadblocks to Consultative Selling

Slower sales cycleInvestigation process is time consuming Need to build a relationship before selling

Telling the client what they don’t want to hear

KEY POINT: Personal communication is a major factor. Personal communication is a requirement of consultative selling, and not everyone has a natural strength in this area. Taking communication skills classes is always a benefit to growing your practice


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Communication Skills…

Communication Skills in Consultative Selling ASK clients what they need. Don’t TELL them. LISTEN and TAKE NOTES.Match your capabilities to meet THEIR needs.ALWAYS follow up meetings.

Provide a summary of the discussionOutline the client’s stated needsList action items, deliverables, and a timeline


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Why Firms Lose Clients

Firm does not communicate well with clientFirm doesn’t listen to client’s needsPoor follow-upFirm is reactive, not proactive

Poor product/service qualityFlaws or errors in product/servicePoor customer service

Firm does not evolve as client needs changeFirm doesn’t offer full serviceFirm and client are not equally invested

Client doesn’t feel firm is “partnered” with client’s business

Client feels firm only wants client’s money


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Cross-selling is…

taking advantage of an existing relationship to introduce, offer or refer additional products and services in an effort to increase the revenue potential from that client.


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The Cross-selling Process

Six Steps to the Cross-selling Process:

1. Reach out to clients

2. Investigate

3. Match solutions to client needs

4. Gaining agreement

5. Managing objections

6. Gaining commitment

KEY POINT: Consider using these bullet points as a cheat sheet in your next client meeting. Think of it as a way to shape and guide the discussion.


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The Cross-selling Process, continued

1. Reach out to clientsGet on the phone or send a personal e-mailReview current programsDiscuss new capabilities


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2. InvestigateAlways use open-ended questionsDon’t make assumptions and jump to a solutionLISTEN and TAKE NOTESAsk them …

What’s new in their business What’s working wellWhat isn’t working wellWhat the company’s current goals areWhat methods will achieve those goalsWhat specific issues need the most attentionSummarize discussion back to client in their own words


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3. Match solutions to client’s needsFunnel clients from wide concepts to specific needsStand in their shoes. What is the “value proposition” to

THEM?Don’t try to close too soon


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4. Gaining agreementWhen the client appears ready, ask them to state:

How the product or service might benefit their companyIf they see any issues or concerns (barriers)

NOTE: Those barriers are commonly referred to in sales speak as “objections.”


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5. Managing objectionsTAKE NOTES and LISTENAcknowledge any concerns Re-state client problems in their own words Brainstorm flexible options and solutionsDiscuss issues until client appears comfortable moving

forward

KEY POINT: You will go through this cycle until the client is out of objections and you are in general agreement about your proposed solutions.


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6. Gaining commitmentWhen the client appears ready, you need to ask for the

business Immediately follow-up with action items and a timetableKeep in touch – start the process over

KEY POINT: The key is to stay in touch on a frequent basis to discuss business in general. Not only to service your existing products and services but to keep a pulse on cross-sell opportunities as your client’s business, and your business, evolve.


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Summary of Today’s Presentation

Services vs. productsTrends: The Multiple Disciplinary PracticeGrowing your firm through value-added servicesBuilding value-added services through outsourcing “Consultative selling” for the professional services

industryCross-selling techniques for growing your firm


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Discussion Questions

1. What are your thoughts on the concept of the “Multiple Disciplinary Practice?” Is the trend real, and if so, how does it effect your firm?


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Discussion Questions, continued

2. How active has your firm been in up-selling additional products and services? What are some of the strategies that seem to work well for you?


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3. Do you plan on adding any additional value-added services in the near term? If so, what are the most realistic for your firm?


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4. Have you noticed any trends in your clients asking you for advice in non-traditional CPA offerings? If so, what kinds of tangent products or services do they value your opinion on?


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5. Lastly, what is the single most important aspect to growing your business, and why?


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Next Steps

Review Handout Material for Additional Content Information

Review CPE Card

Access CPE Certificate by Completing Online Components Through www.accountant.adp.com

Thank you

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