This Marketing 360® accounting client discovered that making a really competitive initial offer was a powerful tactic for bringing in new clients. Here’s the breakdown.
In competitive markets, sometimes you don’t have a choice: you’ve got to come out swinging.
That means you have to make an offer that states – with clarity – that you beat your competition. It’s not just enticing – it’s so good that prospects almost feels foolish passing it up. It may even be a loss leader where you don’t profit from the initial offer but win a new customer that has high potential lifetime value.
This accounting firm came to Marketing 360® feeling the competitive squeeze. The previous tax season had been slow as the combination of local competition, national chains, and DIY tax software cut into their business.
They needed to do more than state that they were professional and cared about their clients. They needed to hit the competition with an uppercut. So we helped them come up with this offer:
Save half over what you paid last year? That’s a mighty good reason to consider giving this firm a shot.
And it worked. They had their most successful lead-generation campaign of all time, nearly doubling their conversion rates from the previous tax season:
At 9.51%, the TPA conversion rate is impressive for accounting services.
This strategy was not technically a loss leader for this business; they still made money on clients who took advantage of this deal. However, those narrow profit margins were not the goal.
The goal was to get more new people in the door so they’d become lifetime clients, which happens the majority of the time because this is a strong, customer-centric business with top-notch CPAs.
This case study shows that when the competition is tough, you have to take it head-on. It’s a long-term strategy that pays-off when you have a smart marketing team guiding it.