Death Care Seminars might not sound like the most appealing activity that a CPA could engage in. But, for Mickey Scheffki and Clifton Gunderson, the seminars are part of an important niche marketing effort.

Scheffki, a CPA and CITP, targets cheese processors-seven in Wisconsin over two years-and funeral homes-about 12 engagements-for Sage Software's MAS accounting software line. When working with funeral homes, the firm conducts the educational seminars, which it also provides to companies such as cemeteries, and suppliers that provide services to the funeral home market.

"We just happened to do one and then another," says Scheffki, the firm's director of technology consulting. "Then, we met up with some other providers that work with funeral home directors across the country and decided to do some half-day educational seminars with them." One of the accounting firm's offices also exhibits at the annual conference of the funeral directors association. It was easy to identify the target market. States have funeral directors associations with Web sites that list members.

The link to MAS 90 is not because it does a great job of tracking caskets. It has more to do with the fact CG has partnered with a firm whose software handles the CRM angles, including government reporting, funeral pre-planning, cemetery mapping, and keeping information on the survivors. But it does not do the financials.

"That's where the MAS 90 comes in. They have the interface to MAS 90 done so there's no need for re-entering information," she says.

Word of mouth still represents an important part of business development and so is location, although having the firm headquarters in Peoria, Ill., doesn't offer one of the best geographies. However, the firm's sales and marketing efforts are producing a steady increase in business.

And she expects that business to increase. The Downstate Illinois Technology Consulting practice, for which she is responsible, currently has 400 active clients and expects to add approximately 40 more by year-end.

Scheffki's group is broken into four categories: software services, infrastructure and network services, security services and application development. The software side sells Sage's MAS 90/200, and Microsoft's Great Plains and Navision.

Another source of business is cross-selling technology products and services to its traditional clients. It is a tactic that has not always worked well in CPA firms, but it is one that CG emphasizes and says has consistently produced results.

"We work hard at being consistent and offering education to both our customers and internally to the more traditional side of the firm that focuses on tax and audit services" says Scheffki. Her group hosts lunch-and-learns for the tax and audit side with sessions covering topics such as products and identifying good leads. Each month, the technology department receives approximately ten leads from other departments within the firm.

The technology group also has three staff members dedicated to business development. These employees work with the marketing staff to develop marketing plans and ongoing campaigns, identify potential lead sources, and generate leads by developing centers of influence and contacts in the local business community.

"Each business development person has sales goals and is compensated based on an incentive plan, and must also keep management and software vendors apprised of the status of opportunities. In addition to knowing the products and services they sell directly, they must learn about the other service offerings of the firm, and actively seek opportunities to cross sell those services," adds Scheffki.

Whatever the business, in tough times or good times, business development is crucial. The main job is still finding new customers. With the economic climate far improved over two years ago, firms are setting higher goals. But it is one thing to have ambitious goals. It is another to achieve them.

Focusing on niches is only a part of the firm's business development. And business development is something that firms need to work on, no matter whether the pickings are slim, or whether business is picking up, as it has this year for many accounting and consulting organizations.

Different views  
Sometimes it is how you look at things. Baytek, a Las Vegas-based Sage reseller, finds that segmenting its customer base helps the firm serve clients better.

"When we look at segmenting, we are studying our 'customer group' and analyzing those groups with similar buying needs and desires so that we can serve them with the same or similar value propositions," says CEO Judy Thornell.

The process has helped Baytek move past the half-point in reaching its goal of acquiring 800 new customers this year in July. The company, which employs twenty-three, handles Sage Software's applications, including the MAS, Peachtree, and BusinessWorks accounting lines.

"We add approximately 40 new customers per month. This year, we have more team members involved in networking within their respective communities. We ask for referrals from our customers, build outbound telemarketing programs, leverage business intelligence, and participate in programs for various events or organizations such as the Ronald McDonald House," says Thornell.

Within each segment, the firm studies three customer groups: existing customers, new customers, and customers who may be seriously considering a competitor's product, which might have a chance of being a lost customer. The firm identifies sales strategies, products, and services that are appropriate for each.

"These groups are important to Baytek as we use them to review and analyze the customer focused trends within our organization, which further helps us identify whether we are winning the deals we have targeted and whether our current customers are responding to our value programs," adds Thornell. "We also use this data for cross-selling and up-selling."  

Segmentation is important to not only gaining new customers which result in increased sales profits, but allows us to win many of those customers with common marketing and value proposition which can reduce costs and further increase profit. Segmenting allows us to find our sweet spot," says Thornell.  

Niche Marketing  
Many firms are finding marketing to specific industries is bringing in a solid amount of new customers.  

Clifton Gunderson is making marketing to niches a firm-wide goal. Each service center has specific target markets. Firm-wide niches include manufacturing, construction, home health care, professional services and grain elevators. Home health care services, based on Navision, is particularly important.  

Factors that are considered in picking a niche include what is driving the need for technology services, the changes the industry is undergoing, and what technology that businesses in that segment need to be competitive.

The firm isn't always looking for large number of prospects. Sometimes, as with the cheese processors and funeral home directors, the target is what Scheffki calls a mini-niche.  

"We target groups of 100 and aim to get 10 clients," adds Scheffki. "We consider how many organizations are located in our targeted geographic regions, look at who our competition is in these areas, and consider how we can differentiate ourselves from the competition and give added value to these potential clients."

Clifton Gunderson isn't the only firm that has seen an increase in customers from targeting a niche market.  

David Thikoll, owner of Phoenix-based Cardamel Consulting, hired three people in the last six months to handle the increased interest in software geared at the construction industry. Thikoll, whose firm sells Microsoft's Solomon software, prefers to work with homebuilders who are ready for a change.

Although the company is averaging one new customer per month, he does not want a high-volume of new sales.

"We prefer to work with fewer customers for a longer time," he says. "Homebuilders need a lot of hand holding and education and we don't want more customers than we have people to handle them."  

Success has come from referrals from existing clients and participating in industry-specific events, including the Builder 20 Clubs put together by the National Association of Homebuilders.  

"We have been asked by a couple clients to make presentations at their bi-annual club meetings. It is not typical that vendors are invited," Thikoll says. "These have been effective as our philosophy and approach are built around enabling the best practices reported and the participants love to follow the lead and successes of industry peers."  

The vendors are supporting the push into vertical markets. Don Nelson, general manager of the Worldwide Partner Team for Microsoft Business Solutions, notes that the company is helping the resellers reach 14 vertical markets through its Velocity Partner Program and ProjectsTV.com, both of which focus on the professional services and construction verticals. The Velocity Program is a venue for Microsoft, VARs and ISVs in North America to share resources and collaborate to market, build and support professional services and construction-focused business management applications for small- to mid-sized businesses based on Solomon software.

While ProjectsTV.com is a portal for project-based companies to get additional information on how software can help them to improve their business. The site includes video from project management and software experts, live chats, and reference materials about Solomon.

Warm and Hot
Business Computer Technologies has classified its more than 200 leads, into categories such as warm inquiries and hot inquires.

"Customers are seeking integrated ERP solutions with more effort being placed on providing more individuals within a company access to information.

We are trying to provide that with Exact's e-Synergy. It also provides workflow, e-document management and CRM," says Tod Replogle, COO of the Bloomington, Ill.-based reseller. Most inquiries come from the manufacturing industry while another 35 percent come from distributors.

To reach prospects, BCT develops monthly Web events that attract an average of 12 prospects each. He is very happy with his close rate.

"Depending on the sales cycle, we generally close one sale. Some might say one sale is not too many. I disagree. The purpose of the Webinars are sales, and knowledge transfer, which turns into sales and branding," adds Replogle.

A recent Webinar conducted in conjunction with Andover, Mass.-based Exact Software was "CRM with a Twist." The 45-minute Webinar explains the importance of CRM, not only for the sales process, but also for organizations to capture its interactions with customers. "We demonstrate how e-Synergy along with Macola ES and Exact Event Manager can provide our clients with a centralized, detailed view of each of its customers, including workflow, sales forecasts, financial transactions, and support issues," says Replogle.

Meanwhile, Dallas-based Tamlin Software finds education is the key to attracting new customers.

"Customers often think they want one thing, but they really need another. We don't approach our job as selling software. We want to learn what the customer needs. We're only successful when we provide something that works for the customer and creates a long-term relationship," says Joe Manci.

The firm has begun hosting quarterly seminars aimed at manufacturers with fewer than 500 employees, recently hosting a Bioterrorism Compliance Seminar in association with the Texas Manufacturing Assistance Center. The one-day seminar covered the impact of the Bioterrorism Act of 2002 on manufacturers.

"The new regulation requires companies that manufacture, process, pack, transport, distribute, receive, hold, or import food to establish and maintain records needed to identify the immediate previous sources and immediate subsequent recipients of food, including all raw materials and the processes applied. Our clients need to know how to keep better records and comply with this act," says Manci. The seminar drew 150 attendees.

Sales Aid
Of course, firms cannot always find the resources needed by customers prospecting business on their own. Vendors recognize the need to help.

Irvine, Calif.-based Sage Software offers several programs including the Marketing Alliance Program, the 100/100 program, and the Sage Software Accountants Network.

Getting resellers and accountants together is one of the avenues for generating business for both. The Sage Software Accountants Network matches accountants with local resellers. Currently, the program has 9,000 active accountants and 750 business partners. Resellers can join for free, while fees for accountants start at $400.

Thornell has worked with 300 accountants under SSAN.

"We help them if they need training in their company or sometimes they refer business to us if they don't sell products," says Thornell. For example, the firm is currently working with a CPA firm that had a client who needed assistance the CPA firm couldn't provide. Baytek has provided data conversion services, Web sessions and multiple on-site client training sessions. "It is always important to keep the CPA in the loop and reinforce the CPA's close relationship with their client," adds Thornell.

Of course, it's a lot easier to get new customers if a business has the workers to reach them.

Eric Rogers, managing partner of New York-based Rogers & Co., says that Sage's 100/100 program has been a major factor in getting new customers because he now has an employee dedicated to following up leads.

Under the 100/100 program, Sage provides a pool of $1 million, which is awarded to help 100 resellers hire sales reps. The VARs that are selected each receive $10,000 to recruit, hire and train the new sales people. The program is now in its second year.

Before qualifying for the program in November, Rogers did not have the time to follow up leads. Now, with the addition of a new sales person, the firm has picked up 10 new customers. "It took a few months to get off the ground but in July alone we'll close six deals," says Rogers.

Rogers is also using Sage's Marketing Alliance Program to send out a three-tiered, direct mail campaign to announce the next version of Sage's Abra HRMS software

"Sage emails the postcards. This brings us the bandwidth of a gigantic firm to our firm," he adds. The firm sent out 1,000 postcards in New York, Louisiana, and Florida to large employers. "I budget that every lead costs about $50 to $75, and we'll be happy with 20 leads," says Rogers.

Carly Lombardo is Associate Editor of Accounting Technology and can be reached at carly.bohach@sourcemedia.com.