Establishing a Client Advisory Board

[author: Mark Ferris ]*

Accounting business leaders need an excellent understanding of the MARKET to make good decisions on new services, marketing, communications, branding, Client service, pricing and even hiring. One of the best sources of knowledge is Clients.

A $5 million Accounting business in Sydney, Australia recently established a Client Advisory Board (CAB) to help them make important decisions. In addition to gathering market intelligence, the CAB has realised a lot of other benefits.

Let’s look into this further, since market understanding is critical in all Accounting businesses.

What is a CAB?

• A Client Advisory Board (CAB) is a group of Clients (sometimes prospects) who provide feedback, perceptions, insights, and guidance to an Accounting business.

• The most effective CABs meet periodically, but some will meet once for a specific purpose.

• Before or after a major change or decision is a good time to establish a CAB.

What’s the purpose of a CAB?
A CAB is an objective source of information, perceptions, recommendations and ideas regarding:

• Products and Services: Accountants launching new (advisory) services or modifying existing services (or their pricing) should ensure these align with Client needs and preferences.

• Service Quality: Clients appreciate good service… but may not always volunteer feedback.

• Market Trends: Accountants should understand the rapidly changing landscape in which they operate, e.g., technology innovation, the competition, regulatory change, economic conditions, etc.

• Marketing Strategy: Accountants can validate their business strategies, value proposition, branding, communication and market positioning to ensure these resonate with their target audience.

• The Business Direction: Accountants will enjoy more success when their vision and values are attractive to Clients.

Who participates in a CAB?
Ideally the participants include:

• A diverse group of Clients representing different segments, industries, or Client profiles.

• Loyal and new Clients with a genuine interest in helping strengthen the business.

• There is no optimal number but for effective meetings, the group should not be too large.

Why would Clients / prospects participate?

• The Client Experience: Some Clients have a genuine interest in helping your business (knowing this will also improve their experience as a Client).

• Knowledge Sharing: Many Client leaders are looking for ways to share their experience and wisdom.

• Networking: CAB meetings foster collaboration, insights and learning among the Clients.

• Accountant-Client Relationship Building: CABs enable stronger relationships, increased Client loyalty and even new sales because Clients appreciate that their opinions are valued.

What are some obstacles?

• Anxiety: Some business owners fear what a Client might say and prefer not to be exposed to criticism

• Time: There will NEVER be a perfect time… but strategic owners will find the time

• “Already Know the Answers”: Sophisticated businesses invest heavily in market research because of the valuable insights. Claiming to have all the answers is often an excuse for inaction

Examples of lessons from CABs

Panalitix facilitated a CAB

• To identify ADDITIONAL SERVICES Clients might buy

• Feedback included that Client Managers should invest time to understand their unique situations and offer tax minimisation and wealth management strategies

• Action: The Accountant strengthened processes related to tax planning, especially for “A” Class Clients

Panalitix facilitated a CAB

• To test Clients’ responses to UPFRONT PRICING

• Feedback included that Clients accept upfront pricing but were concerned about fee increases in a challenging business environment

• Action: The Accountant offered payment options suited to Clients concerned about cash flow

Panalitix facilitated a CAB

• To test how Clients will react to migrating to a NEW ACCOUNTING SOFTWARE

• Feedback included that the advantages of the new system did not outweigh the associated challenges

• Action: The Accountant decided not to mandate a software change but to revisit the idea in 12 months

Any Final Advice on CABs?

• Other Methods: CABs don’t replace Net Promoter Score, formal surveys and informal surveys which also yield valuable information

• Clear Objectives: Use a CAB to test a specific hypothesis rather than for general discussions

• Define Responsibilities: CAB members offer much more if they are clear on what is expected of them

• A Structured Process: Set rules for conducting meetings, gathering feedback, communication, transparency, and recognition of board members

• Facilitation: An experienced third-party facilitator will help all parties get more out of a CAB

• Build a Track Record: Credibility grows when a CAB inspires action… with a positive impact

*Panalitix