The accounting industry is going through a period of profound change. While relationships remain important from a business development perspective, data is now the real currency for firms seeking to fuel sustained growth.
The more sophisticated an accounting firm becomes in its ability to collect, analyze, and leverage data, the faster it will unlock key insights that can supercharge practice growth. But becoming truly data-driven in your growth strategy takes far more than just installing an analytics tool on your website. The evolution to a data-driven growth strategy requires a cultural change.
This cultural shift begins from the very top. Leadership must embrace strategic growth frameworks fuelled by data and leverage analytics to determine priorities and goals for the firm. Having this cultural buy-in is imperative: you can have all the data analytics tools in the world, but they can’t manage your growth strategy for you––they only point you in the right direction.
So, what does it take for an accounting firm to embrace the digital revolution and leverage a data-driven growth strategy? In this article, we’ll share an overview of the various ways accounting firms can incorporate data into their business development strategy, from adopting sophisticated Customer Relationship Management (CRM) platforms to commanding profitable niche markets.
What Does Being Data-Driven Mean?
The concept of becoming data-driven has become a major focus in the business world in recent years. Many businesses are experiencing transformative effects from adopting a data-driven approach to marketing and growth strategy.
But as with any popular business term, there’s a risk of using “data-driven” as a buzzword. Effectively harnessing the power that data affords businesses requires a precise understanding of exactly what it means to be data-driven.
A data-driven growth philosophy means that an accounting firm makes strategic decisions based on the analysis and interpretation of a wide variety of data. This demands a systematic, holistic approach that uses a range of different technologies to collect and process data from a rich network of sources throughout the organization.
Data-driven decision-making is a practice that’s increasingly being adopted by leading accounting firms. Let’s explore some examples of the various ways accounting firms can adopt data-driven decision-making.
Reinventing Firm Growth Strategies with Data-Driven Decisions
The advent of data-driven sales and marketing processes has seen many firms invest in new technologies and processes that improve the output of their business development teams. Leveraging data allows firms to make resource allocation decisions based on facts, rather than intuition. Over time, the effects of this compound, enabling leaders to prioritize practice areas, industries, and marketing channels that deliver outsized results.
Today, the fastest-growing firms are using data to track and assess every interaction they have with both prospects and clients. This offers unparalleled insight into the business development process and has the potential to be a game changer for firms looking for new strategies to fuel practice growth.
Identifying Profitable Niches
The riches are in the niches.
It’s a saying that holds true for all kinds of businesses––not just accounting firms. Identifying and marketing to a particular niche is a strategy that only amplifies the power of data. When firms narrow their focus around a particular industry, vertical, or market, their ability to use data becomes more powerful.
With a more defined focus, firms can target prospects that represent their ideal client portfolio. But how do firms know which niche is the best for them to target?
Often, their data holds the answer. Certain types of clients are more profitable and represent a better match for the services your firm offers. By identifying which niche defines these clients, you can narrow the focus of your firm’s strategy and concentrate on serving one group better than any of your competitors. Casting your firm as the domain expert in a particular niche creates a lasting moat that’s difficult for any competitor to breach.
Embracing SEO with Content Marketing
A winning content marketing and SEO strategy can turbocharge growth for accounting firms. Done right, these strategies attract a constant stream of high-quality inbound leads that translate into significant business development opportunities––all at an extremely high ROI.
A content marketing strategy has a lot of moving parts, but familiarity with your firm’s SEO data is perhaps one of the most important. Learning how to analyze SEO data helps you identify niches to target, optimize the performance of your firm’s website, and discover new opportunities to drive more traffic (and business) to your site.
Leveraging CRM Platforms to Nurture Relationships
In recent years, CRM platforms have revolutionized the way that many firms approach business development opportunities. Adopting a CRM platform enables firms to obtain a holistic view of every prospect, with access to a universe of data that covers everything from prospects’ areas of interest to the number of times they’ve interacted with your firm.
Armed with this advanced level of customer intelligence, business development teams can better tailor their approach to each individual prospect. That helps your firm deliver highly relevant, differentiated messages that can make a real difference in converting initial interest into booked revenue.
While there are some tried and tested marketing channels that drive long-term growth for accounting firms, no two firms will see exactly the same performance from their marketing channels. Monitoring and analyzing every marketing channel enables firms to unlock insights that help them to engineer higher levels of performance across their digital channels.
Leveraging this data not only allows firms to identify which channels drive the highest ROI, but it also helps unlock more granular improvements in the channels themselves. By becoming data-driven, firms can move toward achieving higher levels of engagement on digital content, increased attendances at webinars and in-person events, and ultimately, higher-performing marketing campaigns.
The Fundamental Shift to Becoming Data-Driven
The journey to becoming a truly data-driven accounting firm isn’t one that can be completed overnight. Instead, this transition requires a major cultural shift that places data at the heart of every marketing and business development decision throughout the firm.
Success demands a deliberate, well-thought-out approach driven by advice from experienced practitioners with a track record of helping firms evolve to become more data-driven.
At Winding River Consulting, our expertise lies in supporting accounting firms to evolve to face the competitive challenges of an ever-changing industry. With proven talent in a wide range of disciplines, our team has all the skills firms need to move the needle on their strategic growth strategy.
To learn more about working with Winding River Consulting, contact us today.