I’m back with the next installment in this series on how marketing can help professional services achieve their goals. I started this series because it can often be challenging for firms to determine which marketing activities “work,” are “right for them” or “worth it.” I hope that by now you know by now I start most conversations by asking, “What are your goals?” And I’ve had A LOT of conversations with firms about their most pressing goals. In this piece, I’ll share my insight on a goal many businesses are after--Increasing profit margins. By now you won’t be surprised to hear, marketing can help!

Leverage Commodity Buyers

Commodity buyers put price at the top of their list of priorities when making a decision rather than brand differentiation or perception of value. I can sometimes see their point - it’s  hard to determine if your tax return,or insurance coverage will be better or more valuable than what the firm across town can do. When you meet this buyer, avoid spending a lot of time trying to convince them of your superior value and service.  Instead, the trick is to create service packages or tiers that allow them to decide what they want, with the understanding that to get more, they have to pay more. Whether commodity buyers make up a small, medium or large portion of your business, you can provide great service and make money on these clients without burning out your team - or spending excess time developing a custom proposal they’ll reject based on price. 

There are two parts to serving commodity buyers. The first is on the marketing side, which includes creating the packages, pricing them right (remember, you need to make money here), and communicating them effectively. If you share your options online and make it possible for prospects to select what they want and purchase online, you will have spent minimal time pitching for that work. In the meantime, the second part is about training your team. In order to truly improve your margins after you sell your out-of-the-box service, you have to make sure you are in fact staying in the box. Team members must learn not to  provide services outside of the agreement. They can always offer additional services (the next box up, no box at all etc.), but you only make money if everyone sticks to what the client opted into, which is fair since it was all clearly communicated up front.

Cross-selling

If your current clients are not prioritized in your current marketing plan, you’re missing a really valuable segment of potential work. Assuming your clients are happy with your services, engaging you to fulfill additional needs is a natural extension of your relationship. It will take less effort to build on an existing client than to bring on a new one, so there is some bang-for-your-buck to be gained there. If you’re thinking, well, our clients know what we do, and they know where to find us, you may be surprised to learn that your clients likely do not know that you also offer other services they may need. Recently, one of our clients was on the phone with one of their longtime clients (I’m talking decades). During that engagement, the client had only ever worked with the firm once a year for tax preparation. In conversation, it came up that the firm also provided extensive business advisory services, and  that was in fact, a significant focus for the firm. The client couldn’t believe it! Even though they had this long standing relationship, no one had ever thought to let this client know that the firm could be providing them additional support. That spurred an initiative within the firm to ensure those missed opportunities were a thing of the past.

I share that story to say that your clients want to hear from you! And sometimes, they don’t know what you can do for them, or even what they need. Cross-selling is intrinsically tied to providing excellent service. Suggesting new ways you can provide value, streamline services or otherwise meet a clients needs, is what people expect from their trusted advisors. You have already demonstrated you have value in one area, continue to nurture that relationship by furthering the ways you can work together.

Niches

A niche is an industry or service specialization. A niche is not just something you do, it’s something you do a LOT of and you do it better than your competitors do it. People care if you are really really good at what you do. And they’re willing to pay more for that superior guidance which means that you can price for value, not hours.  You may even decide to go national with your niche if you can profitably serve companies at a distance. I can’t tell you what your niches should be, but marketing can help you leverage them. Your marketing activities need to help you distinguish yourself in your chosen area of specialization. And it needs to be an all-hands-on-deck effort. Marketing, public relations, sales, business development and firm leadership all have roles to play in helping you rise above the crowd. 

Prospective clients need to see your experience reflected at every touch point. Your website, email marketing, social media feeds, speaking engagements, guest blog posts and trade show participation needs to articulate that you understand their business, and differentiate you from your competitors (or eliminate competition all together if you are that highly specialized). Your salespeople need to be able to have substantive conversations with prospects, and you need third party verification from trusted sources in their industry. Once you establish yourself as the go-to in your niche, you can command higher prices based on the value you can provide, and be selective in the clients who you choose to bring on. As geography becomes less of a factor in the decision making process, with proper messaging, you can serve clients nationally. Keep in mind, because you are specialized, clients expect you to be a full service advisor.

Conclusion

Hear me when I say this--Increasing profits will not come from saying yes to everything that walks in the door, discounting your services, burning out your team or scattering your marketing efforts in a million different directions. Your marketing strategy can help you work smarter, not harder. Adjusting your current efforts to leverage commodity buyers, cross-sell to clients and drill down into niches can make a significant impact on your bottom line. Would you like your firm to increase profit margins? Let’s talk!