If we don’t trust experts anymore what do you need to do to STAND OUT?

During 2016 politicians in both the UK (Michael Gove) and in the US (Donald Trump) repeatedly asserted that people have “had enough” of experts. Voting patterns seemed to confirm this as expert political and economic views were largely ignored. And yet, we also know it’s patently not true. If you have a health problem do you prefer to take the advice of an amateur or of an expert? What about if you were arrested?

So the real question is why do people trust some experts but reject others? Why do many people on the one hand seek medical experts for medical issues, but distrust climate experts for climate issues, and economic experts for economic issues?

It transpires there is an answer to this question – although it’s in a scientific paper so relies on the views of experts!

In a study published in 2015, psychological scientist Friederike Hendriks and her colleagues at the University of Muenster in Germany coined the term “epistemic trustworthiness”. This refers to our willingness or otherwise to place trust in, and listen to, an expert when we need to solve a problem that is beyond our understanding. The paper focused on our willingness to believe scientific facts but I suggest that the conclusions are more widely applicable.

The authors argue that for an expert to be high on epistemic trustworthiness they need three characteristics: expertise, integrity and benevolence. In other words, knowing stuff isn’t enough. This is key. For us to rate a person as a trustworthy expert they need to know their information, to be honest and to be good-hearted.  There are also echoes here of the work on the power of Influence by Dr Robert Cialdini.

Being an expert is just not enough any more. Experts are more likely to be believed if they are likeable and evidently honest. I have addressed this previously on my blog. One way to evidence your honesty is to admit what you don’t know. In so doing you add credibility to what you do know about. You evidence your expertise partly by accepting its limitations.

The research paper “Measuring Laypeople’s Trust in Experts in a Digital Age: The Muenster Epistemic Trustworthiness Inventory (METI)”  is actually a contradiction in terms. I am quoting it as justification for this blog post. But the very title of the paper works against it. In particular the very idea of something using a fancy term such as “Epistemic Trustworthiness” makes it less likely that many people will accept the premise of the paper.

Many experts make the same mistake. Clients are often alienated when they feel that we are using unfamiliar words and unintelligible acronyms. When we do this we are making the mistake of seemingly pushing our clients to rise to our level of sophistication and knowledge. We are much more likely to be trusted if we use words and phrases that are commonly understood and if we explain any necessary or helpful acronyms.

As experts we need to demonstrate that we are good, honest people who have our clients’ and prospective clients’ best interests at heart. We increase the likelihood that we will stand out from our competitors if we:

  • communicate more clearly and hold back on the jargon;
  • admit what we don’t know; and
  • develop a genuine interest in helping other people.

In a continuing effort to practice what I preach, I would encourage you to look around this website. Access any materials and blog posts that you find of interest and do get in touch if you feel I might be able to help you. If I can’t I’ll admit it and hopefully will know someone who can!

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How much personality should sole practitioners put into their practice?

I was asked two related questions during a recent interview. This post is drawn from the notes I made before giving my answers on air.

1. With so many businesses competing with each other online, has it become more important to put more personality into your practice?

The smaller your practice the more important it is to allow people to know that it is you who runs it. I am assuming here that you want more clients and that you’re not simply looking to take on those people who want the cheapest possible job.

Your clients know who you are, don’t they? Why hide this from prospects? That’s what you do when you fail to include your name, a photo and something about you (as a person) on your website. It’s really easy to STAND OUT positively from all of your competitors who fail to do this. Let them be the ones who hide behind a business name and brand – with a website that only allows people to contact an unnamed info@ email address.

I’d encourage you to adopt the same logic when you are crafting or updating your Linkedin Profile. (See my free Linkedin Profile Tips here>>>)

And finally on this point, if you’re going to use twitter then ensure you use it in your own name with a photo of YOU. This will be far more effective than tweeting in your firm’s name. Personal twitter accounts always have more engagement and followers than those that operate in the name of small accountancy firms.

The more of your professional personality you show the more you will STAND OUT positively from your competitors who fail to do so.

2. Is there such a thing as too much personality?

I’m sure we’ve all seen people who confuse the idea of evidencing their personality with shouting about their achievements and activities online celebrex cost. This sort of behaviour is a turn-off and rarely helps build a positive reputation or new business leads.

What do you want people to say about you when you’re not there? You want to leave a positive impression whether online or face to face. If you have a larger than life personality that’s fine. It’s not for everyone, but if that’s your style then don’t hold back. Just try to ensure you are aware that some people may find you overpowering and so struggle to build rapport with you. Then  again, maybe you want to attract the sort of people who can relate to and enjoy the company of a larger than life accountant with a big personality. You can’t please all the people all of the time.

Be yourself – be authentic – be consistent. And let people take you for who you are.

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What can you do if your fees are too low?

Let’s start with a truism. No accountants complain that their clients are paying them too much. Conversely there are five main reasons why accountants think their clients are paying too little:

1. They haven’t put the basic fee up to a commercial level;
2. They don’t charge more during their busiest period;
3. They haven’t asked their clients to pay for ‘extras’;
4. They think their clients would struggle to find the money;
5. Their clients won’t pay higher fees or for ‘extras’ even when asked

If your basic fees are too low, don’t put off raising this with your clients. All you really need to do is plan your approach and remember that this could be different for different clients.

One accountant I mentor uses me as a sounding board to test his approach to having these difficult conversations with clients. He reports that his confidence is always higher afterwards and he doesn’t lose that many clients when he advises them of his new fee rates.

If your clients are struggling with cashflow you have a choice as to whether you increase your fees or continue to act as a charity or credit agency. With very few exceptions I would rather stop working for people who cannot afford to pay my fees – and to ensure I don’t end up having worked for free (eg: if they go into liquidation).

Much better to ensure all clients are paying fair fees and that those who cannot afford to do so move to another supplier who can provide the level of help they need at a lower fee. What you want to avoid is hanging onto such clients and then suffering bad debts (which includes building up work in progress that cannot be billed because the client has gone out of business).

You’ll need to think this through before you start approaching clients to start work on this year’s tax returns.

I suggest you book a chunk of time in your diary to plan how you will do this and maybe to brainstorm some ideas that will work for your practice and your client base. In my experience whilst there are plenty of issues that are common to many firms, everyone is different so what works well in one firm is not automatically right for another.

I normally suggest that accountants start by focusing on how much they want to earn from their practice. Then you can determine what they will need to do to achieve that ambition. Only you can decide what you want and how you’re going to get it.

When your fees go up you will invariably lose some clients but even if you do, overall you are likely to end up with more fees and more time – a win-win situation. And if you also make a reciprocal fee arrangement with a smaller accountant to whom you refer your ‘lower value’ clients you can ensure that everyone is happy.

 

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Do you offer a service guarantee? I bet you do.

Let’s be realistic. If you did some work for a client but they weren’t happy because you made a big mess of it, would you insist on charging them extra to correct your mistake?

I hope you wouldn’t even consider trying to charge extra to resolve a mistake of your own making.  To my mind this is the start of a service guarantee. And it’s the sort of thing, which, if promised up front, can help generate confidence from prospective clients.

Over the years I’ve often seen references to service guarantees on an increasing number of professional service provider’s websites. I came across one last week and established that it wasn’t unique to the firm in question; Just put yourself in the shoes of a prospective client and consider how effective is the message below. It’s listed on some accountancy firms’ websites as one of the answers to the question ‘Why us?’

Our 100% Risk Free Guarantee…Use our services to help you pay less tax and increase wealth, completely at our risk. Our services are so outstanding there’s a 100% Risk Free Guarantee.

Here it is…

If at any time you are not completely happy withglobal-unlock-guarantee our work please discuss it with us. If we really can’t sort the issue for you then don’t pay for the part you’re not happy with. Ask for it at any time within 30 days of the work and we won’t expect payment. That means…

No small print;

No quibbles;

No questions asked;

No exceptions;

No strings

I think this is very cleverly worded and does put some (but not a lot) of responsibility on the accountant to achieve absolute clarity as regards the services to be provided up front.

How would you feel if a prospective client asked if you were as confident as this in your work? Or why should they choose you over another accountant that offers such a guarantee?

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