Partner Branding

On the occasions that I’m fortunate enough to be asked to speak before an association or a CPA firm, one of the concepts I continually stress and review with attendees is defining the difference between “brand loyal” clients and “partner loyal” clients.

Clients who are brand loyal, usually are, more often than not, clients of the larger firms – those with a widespread regional presence or even a member of the Big Four. Those clients rarely have a personal relationship with the people performing their audits or 1040s, as opposed to the partners at smaller firms who form an almost intimate bond with clients over the years and whose retention rates hinge on the strength of those relationships.

That’s why it’s often more difficult to facilitate a merger between two smaller firms with partner loyal clients, because one of the first questions that a client will invariably raise when learning of a pending merger, is asking whether the partner they have come to know and trust will still be there? 

For smaller firms, entering into a merger is a frequently a far more emotional decision than it is financial. Obviously the fear of rising fees or a change in office location also help fuel the uncertainty quotient. But it’s all about the client comfort level.

While CPAs by nature are overly cautious in just about everything, I have found that the majority of partner-loyal clients aren’t exactly Evel Knievel either.

For that very reason, we help with the often difficult pre-and post-merger techniques of assisting with client transition. We’ll look at the client list of the seller firm and help them determine which ones receive a personal visit, which get a telephone call and which ones get an announcement letter. (And for those clients slated for a letter, ALWAYS use the seller’s envelope and letterhead, or else it will likely find its way into the circular file – discarded as a potential solicitation. And it’s critical that the seller never position the merger as the loss of their firm, but rather the gain of the acquirer.

For those getting a personal visit, it’s critical that partners of both the buyer and seller attend, so the client can place a face with a name. Should a tax or audit question arise during the transition period, a client at the seller firm will no doubt call his long-time accountant. The CPA should, in turn, have a partner of the acquiring firm call them back, introduce themselves and provide them with the answer.

Again, it’s all about the comfort level.

But it’s also about perception.