For decades, referrals have driven a large share of the growth for accounting firms. But with your buyer behavior changing, the Internet eliminating geographic barriers, and competition heating up, a passive approach to growth is fraught with risk. 

If you lead a growth-minded accounting firm, it’s important to understand why you can no longer count on word-of-mouth…and how strategic marketing can generate a more predictable pipeline of leads that turn into clients. 

Six Reasons Your Firm Can’t Rely Only on Referrals 

CPA firms have leaned on referrals partly out of habit and partly because it’s perceived as an easy approach that yields quick wins. Even as private equity firms form massive roll-ups that heighten the competition, many firms still cling to the referral model. 

Depending solely on referrals to grow your accounting firm is problematic for six reasons. 

1. You leave revenue on the table. When you limit your growth only to referrals, you ignore untapped markets and other segments you could be serving profitably. That’s especially true if your referrals are primarily local, yet you’re equipped to serve a broader radius.  

2. You can’t plan for it. There’s simply no way to know if and when a referral will come in. Even if you actively encourage referrals, it’s an unpredictable pipeline that’s extremely difficult to plan for. 

3. You’re dependent on employees who might leave. A robust referral pipeline requires a diverse base of strong relationships. When a partner retires or a key employee moves to a different firm, your sourcing network takes a hit. 

4. You don’t always attract the right clients. Your referral sources might not know what your ideal client profile is; in fact, they probably give little thought to whether the prospect they’re passing along is a good fit for your firm.  

5. You’re still competing. A buyer looking for accounting services might receive recommendations from multiple sources. They’ll vet your firm by reviewing your website, content, social media presence, online reviews, and more, often comparing them to competitors with larger budgets. 

6. Your buyers are savvy. The younger generation of buyers tend to be less inclined to seek a recommendation and more likely to trust their own research. They’re comfortable using AI-enabled search tools to find an accounting firm that fits their criteria.  

Referrals still have a large place in an accounting growth plan, especially since they come with a degree of built-in trust. The key is to diversify your revenue opportunities by supplementing word-of-mouth with proactive marketing that targets your ideal buyer, eliminates the invisible revenue leaks that plague professional services firms, and drives consistent growth. 

What Revenue-Generating Marketing Looks Like for Accounting Firms 

Though every firm has unique needs, several marketing approaches are proven to generate revenue across the accounting space. In Marketri’s experience, the following foundational elements are effective at driving a predictable pipeline of accounting services buyers, nurturing them through the revenue funnel, and converting them to clients. 

Sector-Based Approach 

Accounting firm leaders are often reticent to narrow their reach to certain sectors where their staff has deep knowledge and expertise. But as the old saying goes, “You can’t be all things to all people,” especially in accounting. Buyers will realize tremendous value from working with a firm that understands the nuances of their sector—including industry-specific accounting rules and regulations—and has helped similar businesses overcome common challenges.  

Sector-based marketing starts with thoughtful analysis of the best industries to focus on. It’s critical to first choose sectors where you have true expertise. Then an experienced Fractional Chief Marketing Officer (CMO) can assess the market and determine which of those sectors offers strong potential, based on whether they’re growing vs contracting, fragmented vs consolidated, emerging vs mature. Once you’ve identified the best-fit sectors, your marketing partner will develop a comprehensive plan to target them. 

Thought Leadership Focus 

For accounting firms (and other professional services businesses), your people are essentially your product. Clients pay for your team’s expertise, experience, and knowledge, so they need confidence that your firm employs industry leaders who offer valuable insights. That’s why thought leadership is a key component of an accounting marketing strategy.  

Prospective clients will relate to your content if it’s compelling, imparts useful information, and provides a unique point of view. They want to know that you understand their business challenges and how to solve them. And they crave authenticity—not a generic, AI-generated piece that does nothing to differentiate your firm from the rest.   

Proactive Cross-Selling and Upselling 

Many accounting firms see the value of encouraging current clients to purchase more services, but few do it strategically and proactively. A marketing partner with experience in accounting knows how to optimize this overlooked channel and turn it into a growth driver.  

A strategic marketing partner will set the foundation to cross-sell and upsell effectively. They’ll establish the infrastructure to obtain accurate data about each client’s tenure with the firm and the services they currently use or have in the past. Then your partner will develop marketing campaigns that offer the right services to each current client at the right time.  

Case Study: How One Accounting Firm Grew Beyond Referrals 

A nine-year-old accounting firm had expanded mostly through word of mouth, but was ready to diversify its revenue base to compete in a crowded market. Marketri developed a data-driven go-to-market strategy and plan, created positioning and messaging that set the firm apart, and revamped the website to showcase the firm’s talent and breadth of services.  

With the stage set, the Marketri CMO analyzed the market and guided the firm in choosing sectors to focus on. Then we implemented a comprehensive sector-based marketing program that included industry-specific webpages, blogs, case studies, video testimonials, webinars, conference participation, speaking engagements, sponsored content, email campaigns, and thought leadership via social media. To complement the sector-based program, we created short videos cross-selling finance services to clients that only used the firm for accounting. 

Now, 60% of leads are marketing-generated and the average contract has grown by 70% as the firm attracts buyers that represent its ideal profile. 

Along with metrics like these, most accounting firms track other key performance indicators (KPIs) such as number of qualified leads, lead conversion rate, cost per lead, revenue generated by new engagements, and client retention rate. Having the right customer relationship management (CRM) system in place allows your marketing partner to monitor, track, and optimize campaigns for the best results. A CRM also provides visibility into all the touchpoints and channels involved in moving a buyer to act, so you know what’s working.  

How Fractional Marketing Drives Accounting Revenue  

Growth-minded accounting firms recognize that strategic marketing drives more predictable revenue than passive referrals. Yet only the largest firms have the resources to staff all the specialists needed to engage in modern marketing. 

That’s why small and mid-sized accounting firms are adopting the fractional marketing model.  

Fractional marketing gives you the flexibility to obtain the exact slice of marketing skillsets and expertise you need to drive measurable growth. Rather than tie up finite budget on in-house positions you don’t likely need on a full-time basis, fractional marketing allows you to access the appropriate resources at every stage of your marketing journey. You’ll allocate more of your budget to marketing execution and achieve a higher ROI. 

Marketri is the fractional marketing partner of choice for accounting firms that want to achieve sustainable, predictable growth. We develop a strategic marketing plan grounded in data and research, then execute it flawlessly and optimize it continually for the best results. Our comprehensive marketing programs complement your referral sources, bringing in new clients that fit your ideal profile and generate profitable revenue. 

Schedule an introductory call to learn how our fractional marketing model can drive revenue growth for your accounting firm. 

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Meet the Authors

Jane Woodling is a digital marketing professional from Chapel Hill, NC, with a B.S. degree in Consumer and Retail Marketing from the University of North Carolina at Greensboro. With 12 years of marketing experience in industries such as manufacturing, B2B SaaS, and consulting & professional services, Jane’s specialties include marketing automation, digital asset creation, content planning and strategy, reporting and analytics, product positioning & product marketing and GTM strategies.

Trisha Gallagher is a marketing strategist and mentor with 15 years of experience in planning and executing successful marketing programs. Having held various roles in marketing both in-house and agency-side, Trisha brings a unique perspective to her role as Vice President of Marketing at Marketri. In addition to her dedication to her clients, Trisha is passionate about mentoring young marketers and helping them achieve their goals.