Boomer's Blueprint: Experimentation for growth and relevance

For accounting firms today, staying relevant and competitive requires proactive innovation. Experimentation, a structured approach to testing ideas and hypotheses, is a powerful tool for driving growth, improving client satisfaction, and solidifying their position as trusted advisors.

Experimentation is the foundation of exponential learning. It lets firms test assumptions, validate ideas, and gather actionable insights with minimal risk and investment. Client expectations are shifting toward value-driven and technology-enhanced services, so experimenting with new service models, pricing structures, or technologies helps firms unlock sustainable growth.

To put experimentation into practice, here's a workflow that moves ideas from concept to validation in a structured, repeatable way.

1. Start with the client. Before diving into any new initiative, identify your target clients and understand their needs, pains and aspirations. Ask, "Who has the problem we are trying to solve?" and "What must be true for our solution to be a success?"
2. Formulate a hypothesis. A well-formed hypothesis guides the experimentation process. For example, "We believe that implementing subscription-based pricing will improve client retention by 20%." The hypothesis should focus on a single variable and be testable, with clear pass-fail criteria.
3. Design the experiment. Good experiments prioritize learning over perfection. Start small with low-cost, quick-to-implement tests such as client interviews, surveys or A/B testing. Ensure the experiment aligns with your biggest assumption, the one that could make or break your idea.
4. Execute and observe. Conduct the test and collect data. The goal is to gather evidence that validates or invalidates the hypothesis. For example, a pilot program offering bundled advisory services at a fixed monthly rate could reveal how clients perceive value and whether they prefer this model over traditional hourly billing.
5. Analyze and adapt. After the experiment, analyze the results. Did the data support the hypothesis? If so, scale the idea. If not, refine your approach or pivot to a new solution. Each iteration brings you closer to a business model that resonates with your clients.

Applying experimentation in your firm

Once you understand the basic workflow, the next step is to see how you can apply experimentation in practical, real-world scenarios. Here are a few to consider:

1. Redesigning service offerings. Experiment with bund-ling services into packages that align with client priorities. For example, a "Tax Planning and Wealth Advisory" bundle could cater to high-net-worth clients looking for comprehensive financial guidance. Test client interest through a focus group or by offering the bundle to a select group of clients for a trial period. Don't let internal silos stop you from delivering increased client value.
2. Exploring subscription pricing models. Transitioning from hourly billing to subscription pricing has gained traction in our profession. If you're not there yet, test the model by offering a fixed monthly fee for unlimited consultations or specific services. Monitor client feedback and revenue stability to assess the effectiveness of this approach.
3. Adopting new technology. Technological innovations like artificial intelligence-driven tax preparation and client management tools can increase efficiency and service quality. Pilot these tools in a controlled environment before rolling them out firmwide. Measure key metrics, such as time savings, error reduction, and client satisfaction to validate the investment.
4. Enhancing client communication. Experiment with different communication strategies to improve client engagement. For example, you can test whether personalized video updates on tax law changes result in better client understanding and engagement compared to traditional newsletters. Analyze open rates and client feedback to determine effectiveness.
5. Improving team collaboration. Experiment with agile team structures or collaborative platforms internally to improve productivity and drive innovation. For example, trial a cross-functional team approach for complex client projects and gather feedback from team members on the workflow's efficiency and outcomes.

Overcoming barriers to experimentation

Experimentation can feel intimidating, especially when it's seen as risky or too time-consuming. But when you start small and keep experiments focused, those risks shrink and the benefits become easier to see.

One of the biggest hurdles is cultural resistance. Teams may hesitate to try something new for fear of failure, but reframing failure as a learning opportunity shifts the mindset from "win or lose" to "win or learn." Celebrating both successes and lessons learned creates a culture where people feel safe to test new ideas.

Another challenge is resources. Not every experiment requires a big budget or fancy technology. Often, the most effective tests are the simplest. Online surveys, free analytics tools, and direct client feedback generate meaningful insights without stretching the firm's resources.

Finally, there's the worry about how clients will react. The key is clear communication. When clients understand that the goal of an experiment is to enhance their experience and deliver better outcomes, they're far more likely to embrace the change.

Experimentation in action

We worked with a midsized firm that wanted to improve its cumbersome client onboarding process. The firm hypothesized that implementing a digital onboarding portal would streamline the process and improve client satisfaction.

Here's how they approached it:

1. Hypothesis. "We believe a digital onboarding portal will reduce onboarding time by 50% and improve client satisfaction scores by 30%."
2. Experiment. They onboarded a pilot group of 20 clients using the portal, while another group followed the traditional process.
3. Metrics. The firm measured the time to complete onboarding and client satisfaction scores.
4. Results. The portal reduced onboarding time by 60% and improved satisfaction scores by 40%.
5. Action. Based on these results, the firm rolled out the portal firmwide and incorporated client feedback for further refinement.

We're at a crossroads. Traditional approaches aren't enough to meet the demands of a competitive and rapidly changing marketplace. Embedding experimentation into your firm's culture unlocks new opportunities, enhances your value proposition, and fosters long-term client loyalty.

Experimentation is not about taking blind risks; it's about making informed decisions based on evidence. Start small, focus on your clients, and iterate until you find what works. Firms embracing this mindset will survive and thrive in an era of exponential change. Think — plan — grow!