Future Trends in Accounting Marketing.

The marketing of public accounting services is changing. The results of a recent survey by the Association for Accounting Marketing (AAM), Creating the Future Agenda for the Profession, revealed four key trends that are dramatically affecting how marketing operates at local, regional, national,

Methodology of survey

The AAM surveyed both accounting firm marketing directors and managing partners nationwide to identify the key roles and responsibilities of sales and marketing professionals, the competencies and skills required, and the significant issues affecting the industry and the accounting marketing profession. The survey asked respondents to consider all issues, looking at their firms today and three years in the future, and to rate them on a scale from 1 to 5, with 5 being of the highest importance.

Each trend identified in the survey has significant implications for partners as well as marketing and sales professionals. The trends also speak very clearly to the continued development and success--and possibly even survival--of accounting and consulting firms.

Movement from tactical to strategic marketing

"As in many professional service organizations, accounting marketers typically begin by performing tactical marketing activities," explains Lisa Daniels, AAM executive director. "As the people and the function gain credibility and become better understood by the firm, the roles and responsibilities tend to become more strategic in nature."

Strategic responsibilities. As an example, of the top five roles and responsibilities identified by marketing directors in their current positions, only one, change agent, is a strategic responsibility. In contrast, of the top five roles marketing directors anticipated being of importance three years from now, three are strategic: change agent, strategic planner, and practice development coach.

Strategic activities. The differences between marketing directors' responses about today and three years from now also indicate a movement to more strategic activities. The two areas of greatest change in the survey were serving as a strategic planner, or "providing vision and assisting with firm strategic plan formulation and implementation," and client account manager, which includes "ensuring that relationships with the firm's top clients run smoothly and proposing expanded services to those clients."

The managing partners who completed the survey identified tactical activities as most important in the current environment; they listed project manager, change agent, and author/editor as among the top three most important roles today. Of these three, only change agent is a strategic activity. But, two of the three are strategic activities when managing partners predicted that three years from now change agent, project manager, and Web strategist would be three of the most important roles for marketing professionals.

"I think the divergence between marketing directors and managing partners over this issue may point to a critical difference in the expectations between the two groups," explains Sally Glick, director of marketing services for Polaris International, an association of CPA firms. "Marketers typically view strategic planning as one of their most important contributions to their firms. Managing partners, however, have indicated that on average they prefer to have their sales and marketing professionals focus on activities, such as sales training and lead generation, which can immediately affect firm results."

Increasing importance of sales function

A second major trend indicated by the survey is the growing role and increasing importance of the sales function within accounting firms. On this point, managing partners and marketing directors agree.

Sales responsibilities. With regard to roles and responsibilities, managing partners and marketing directors alike identified "sales executive" as one of the top three that have undergone change. The sales executive was described in the survey as responsible for "setting up, conducting, and closing sales calls." Historically, the role of the sales executive was to set up the sales call and then bring in the partners to close the call.

The survey demonstrated the growing importance of revenue results that marketers and sales professionals are being asked to deliver in their firms. For example, managing partners identified the increased focus on revenue results for a marketing director as one of the top three significant issues undergoing the greatest change--in importance between today and three years from now. Related to this issue, managing partners identified the following as the top three competencies and skills of marketing directors undergoing the greatest change assessing client needs and expectations, lead generation, and sales strategy.

Sales activities. The traditional marketing roles are evolving to more revenue-driven activities such as direct sales, serving as account manager for key clients, and serving as sales and marketing coach for individuals and teams within their firms. There are two key issues for accounting firms to address in managing this transition or transformation:

1. The decision to hire sales professionals-at specified levels, with specific experience, for targeted purposes, and with designated support and infrastructure, including compensation packages to attract and retain topnotch sales professionals.

2. Integrating marketing and sales activities into a cohesive, complementary team.

Growing impact of technology

The third key trend identified in the AAM survey is the growing impact of technology on accounting firms and on the accounting marketing profession. Both marketing directors and managing partners identified the impact of information technology as the top issue the profession will face in the future.

In fact, three of the five most significant issues and influences predicted by both groups to be of the most importance three years from now were the impact of information technology, the impact of the Internet on existing products and services, and the impact of the Internet on new products and services.

Progressive accounting and consulting firms are beginning to look at ways to package and sell products and services to both individuals and businesses over the Internet. Firms need to examine and understand the ways technology impacts how they sell to and serve clients--from providing cyber process certification to delivering accounting, tax, and consulting solutions online. In addition, they need to understand that from service delivery and client communication standpoints technology involves significant investments, as well as continuous learning.

Different applications of skill sets

A fourth and final trend apparent in the survey is the similarities--and differences--between the responses from marketing directors and managing partners. Both groups see a movement from tactical to strategic marketing, the growing importance of sales, and the impact of technology. Yet while both groups see the same picture, each group emphasizes different implications and applications based on their roles and perspectives.

Marketing directors asked to anticipate the competencies and skills that will undergo the greatest change in the future selected sales and marketing coaching, market research, results tracking and performance measurement, and lead generation. Managing partners, however, selected assessing client needs and expectations, sales strategy, customer relationship management, and consulting capabilities.

"The themes seem to tie together, with managing partners and marketing directors seeing the same competencies and skill sets required for the future, but often with a different point of view on how those skills can and should be best utilized," says Jean Marie Caragher, president of Capstone Marketing, Inc., a consulting firm specializing in accounting and law firms. "Marketers tend to want to be involved in strategic marketing decisions and activities, including image and brand management, strategic planning, and serving as a Web strategist and change agent for the firm. Most managing partners in the survey indicated that while strategic planning was somewhat important, their interest was on sales growth and revenue results. However, many managing partners still put strong emphasis on the more tactical activities in the future, such as project management, information manager, and marketing planner."

This points out the increasing need for marketing directors and managing partners to reach a common understanding regarding roles. Definitions of marketing and sales are often blurry, and the objectives of the marketing function--and how they tie in with the overall firm goals and strategies--are poorly or loosely defined. These issues can provide a discussion framework for the key people involved in the marketing and sales functions within accounting firms, to help them decide the best course of action for their firms.

Russ Molinar, Assurance & Advisory Business Services, Ernst & Young, LLP, Cleveland, Ohio. Molinar is the immediate past president of the Association for Accounting Marketing (AAM). E-mail: russ.molinar@ey.com.