Word of mouth remains one of the most significant drivers of client acquisition in the B2B sector. According to the American Institute of Certified Public Accountants (AICPA), referrals consistently rank as the top source of new business for professional services. When accounting firms seek growth strategies, implementing a systematic referral program is often the first recommendation they receive.

This article provides nine actionable strategies for Accounting firms to increase client referrals. It discusses three overarching categories: identifying client segments, timing and scheduling touchpoints, and structured approaches to requests.

The Proven ROI of CPA Referrals: Key Industry Insights

Referrals are the lifeblood of client acquisition for many professional services firms. Reports indicate that up to a staggering 89% of firms attribute the majority of their new business to referrals. This reliance on word-of-mouth is further underscored by FA Magazine's findings that nearly half (48%) of wealth managers identify client referrals as the most effective way to find ideal clients. Other methods, including seminars, events, and social media pale in comparison.

The 2022 Client Advisory Services (CAS) Benchmark Survey by the AICPA reinforces this trend within the accounting industry, revealing that existing clients are the primary source of new business leads for CPA firms. Existing tax clients contribute the most referrals (79% for top performers, 67% for all respondents), followed by "external referrals" from contacts outside the existing client base (60% and 64%, respectively). In ClearlyRated’s own accounting industry benchmarks study, 77% of CPA firms would consider switching providers based on a recommendation.

Soliciting Feedback and Asking for Referrals

These data points highlight the importance of nurturing existing client relationships and tapping into external networks. For the former, a robust feedback system can enrich ongoing relationships. For the latter, strategic referral programs can exploit extended networks for substantial client base growth.

Modern accounting firms employ various methods for gathering client feedback, including:

• Targeted surveys like the Net Promoter Score (NPS) or Customer Satisfaction (CSAT) survey
• Feedback forms and other digital channels
• Direct client interactions during account management check-ins, project reviews, or even informal touchpoints

These same channels for garnering insights into client satisfaction and identifying areas for improvement can also pave the way for more organic referral opportunities if you can integrate them into your strategic referral program.

Maximizing the efficacy of referrals, of course, requires a clear understanding of who to target, when to ask, and how to approach potential referrers.

9 Ways to Increase Client Referrals for Your Accounting Firm

The bottom line is straightforward: ask for them. But that begs a few key questions:

• Who do you ask?
• When do you time your request?
• How should you approach them?

Who to Ask to Get More CPA Referrals

Focus referral requests on these client segments:

1. Ask High-Value Clients

Focus referral requests on clients who offer the greatest potential return. Categorize high-value clients using these segments:

• Flagship Clients (top 20% annual revenue contribution) - These clients generate the most revenue and their referrals are likely to yield similarly high-value acquisitions.
• Complex Services Clients - Clients with complex service needs often belong to extensive industry networks. Their referrals can connect you with other businesses requiring similar specialized services.
• Key Opinion Leaders (KOL) - These clients hold significant sway within their industry, perhaps through speaking engagements, publications, or leadership roles in professional organizations. Referrals from KOLs carry significant weight and can open doors to broader industry recognition.
• High-Growth Trajectory Clients (demonstrating consistent YoY revenue growth of X% or belonging to a rapidly expanding industry) - Prioritizing clients on a high-growth trajectory maximizes the long-term value of their referrals as their businesses—and networks—expand.

2. Ask Long-Term Clients

Long-term clients, with their deep understanding of your firm's value, are prime referral sources. Maximize their referral potential by:

• Documenting success stories - Showcase their positive experiences.
• Developing case studies - Highlight the long-term value they've gained.
• Creating video testimonials - Capture their authentic endorsements.
• Exploring co-created content - Partner with them on thought leadership pieces.

These strategies transform satisfied clients into powerful advocates. At the same time, they also take advantage of a diverse content mix and deepen relationships via expanded campaign partnerships.

3. Interact with Evangelists or Key Influencers

Connect with and build professional relationships with individuals within key client accounts who influence purchasing decisions or shape brand perception. These "evangelists" can amplify your message and reach a wider audience.

Cisco's Champions program exemplifies this. They engage influential IT professionals by providing exclusive access to resources and encouraging content creation (e.g., podcasts, webinars). This builds a feedback loop, strengthens relationships, and generates valuable brand advocacy.

You can emulate and customize your own version of this strategy by identifying key individuals within your KOL clients and offering similar opportunities for collaboration and engagement.

When to Ask to Get More CPA Referrals

Perfect timing is a skill, particularly when asking for CPA referrals:

4. Ask Regularly but Respectfully

Consistently ask for referrals, but avoid overwhelming clients. Streamline referral programs by implementing a routine, such as quarterly or biannually.

Many firms now incorporate regular feedback mechanisms like the NPS, which gauges client likelihood to recommend services on a 0 to 10 scale. Around two-thirds of the Fortune 1000 use this system, though accounting firms are a bit lagging in adoption. Integrate your referral program with the NPS, or automatically schedule follow-ups after identifying clients you want to engage based on NPS results.

The NPS has proven useful for accounting firms across many different dimensions, so it should be a welcome addition to your client interaction arsenal.

5. Capitalize on Positive Interactions

Time referral requests strategically. Use tools like NPS surveys to identify positive feedback and rely on a documented process, not just ad hoc conversations.

Capitalize on opportune moments like:

• Project completions - During the celebration (e.g., a call, email, or small gift), express gratitude and directly request referrals, linking the request to the successful outcome.
• Positive feedback submissions - Document the specific positive feedback received. Trigger an automated follow-up process to thank the client and request referrals, referencing the positive comments they provided.
• Service expansion discussions - Ask clients who in their professional network can benefit from the same value they will receive from the expanded services.
• Achievement of client goals - Acknowledge the client's milestone and the role your firm played, creating a shared accomplishment that can be steered towards requesting referrals.

6. Make the Most Out of Networking Events

In-person events provide invaluable face-to-face opportunities to touch base with existing clients and secure referrals on the spot.

Maximize these opportunities by being prepared before the event:

• Identify attending target clients
• Prepare personalized talking points
• Create event-specific referral materials

If the referral is attending the same event, try to make it your first touchpoint. During the actual event:

• Facilitate immediate introductions if possible
• Schedule one-on-one meetings with key clients and referrals
• Document verbal referral commitments and politely follow-up

How to Ask for More CPA Referrals

After identifying key segments and timing, let’s systemize your approach to approach asking for CPA referrals:

7. Develop a Multi-Channel Communication Strategy

Reach clients where they are. Implement a diversified approach across multiple channels, but guarantee that all communications adhere to professional communication protocols and compliance requirements:

• Email - Personalized templates with clear call-to-actions, respecting clients' time.
• LinkedIn - Encourage connections and referrals within professional networks.
• Client portal - Integrate referral tools directly into existing platforms for seamless access.
• Mobile app (if applicable) - Maximize push notifications for timely reminders and updates.

8. Design an Attractive Incentive Program for CPA Referrals

For B2B service companies like CPA firms, incentives such as direct cash rewards and discounts on future services are most effective.

This is because of a congruence effect, according to a study that looked at the effectiveness of different referral reward types. The study found that while referral rewards are generally effective for incentivizing referrals, you should align the reward type with your product type: utilitarian rewards focus on practical benefits (e.g., discounts for future services), while hedonistic rewards offer experiences (e.g., travel vouchers).

You can further diversify utilitarian incentives through tiered structures:

• Referral quantity: Reward scales with number of successful referrals.
• Client size: Reward value scales with referred client's business size (e.g., revenue, employee count).
• Service type: Higher rewards for referrals leading to higher-value services (e.g., audits vs. tax preparation).
• Service or plan type: Rewards can be aligned with specific products or subscription plans that are more profitable or desirable for the business.

Curious about how industry-leading firms are leveraging CX to drive more referrals? Watch our webinar: CX for Accounting - How Best of Accounting™ Firms Outpace the Industry to learn actionable strategies for enhancing your customer experience and setting your firm apart.

9. Make Referrals Easy

Simplify the referral process to increase participation. Your program can provide pre-written email templates, online referral forms, or social media sharing options. The easier it is for clients to refer you, the more likely they are to do so, especially after incentivization.

Also consider integrating referral options into existing communication channels or client portals for seamless on-demand access.

How NPS Platforms like ClearlyRated Help Build a Thriving Referral Network

Cultivating a thriving referral network is not a passive activity but a strategic imperative for CPA firm growth. Research conclusively demonstrates that strategic referral programs can generate over two-thirds of new business for accounting firms.

However, success requires more than simply asking for recommendations — it demands a systematic approach to building and nurturing your referral network.

‍ClearlyRated makes client feedback actionable, affording accounting firms a systemized way to drive growth. The ClearlyRated platform streamlines feedback and referral processes, allowing accounting firms to cultivate client relationships more effectively by:

• Automating survey distribution
• Centralizing feedback data
• Providing real-time reporting

ClearlyRated simplifies data analysis and facilitates proactive client communication into an integrated approach that enhances client satisfaction while also creating a natural flow for referral generation. Furthermore, ClearlyRated offers expert guidance and consultation so firms maximize the platform's potential and develop referral programs tailored to their specific needs.

Referrals are earned, not demanded. An NPS platform like ClearlyRated can enable your organization with a proactive, client-centric approach focused on delivering exceptional value and nurturing strong relationships forms the bedrock of a successful referral program, ultimately driving sustainable growth and long-term success.

Take a look at what ClearlyRated can do for accounting firms.

‍