Hitting the Sweet Spot: Marketing to Maintain an Even Keel Client Base
Bruce Chadwick, Prestige Tax Office
Marketing and advertising are among the most difficult responsibilities for any business owner or manager. After managing this area in my own businesses and in larger companies I managed but did not own, I gained extensive knowledge and a deeper understanding of this crucial skill. Advertising is a direct responsibility: you must attract new customers to grow your business and replace those you lose for any reason. Some customers may not respond to your approach, while others may move away, pass away, or leave because of other life events.
This is exceedingly difficult to manage because you must choose the method: print, TV, radio, etc., and the offer and timing. Where, when, how. This is even tougher if you do not have the training, education, or experience.
Currently, my entire advertising budget for my tax preparation business is devoted to Practice Panda: website management, mailing lists, newsletters, videos, and messages. I also maintain a Google Business Profile, which is free and helps me benefit from Google reviews. Google is critical because it puts Prestige Tax Office in front of local tax prospects and builds confidence as they read our many positive reviews. Each year, I remind every client—both verbally and by email after we complete their tax work—how important Google reviews are to my business. My typical follow-up email looks like this:
“I want to thank you again for your business. It was a pleasure to collaborate with you. You will no doubt remember that I spoke of how important Google reviews are to my business. So, I am now asking if you will do me the great favor of completing a Google review for me. To make this as easy and painless as possible, I have provided a link below. Just click on the link and you are transported to the page where you can write about your experience with Prestige Tax Office. I cannot thank you enough!”
Of course, every new client is placed on the mailing list. I make sure that they receive several contacts from us every month. Be it the newsletter, videos, tax tips and so forth.
People ask me why I pay for a website. The answer is simple. You must have one to validate and prove your existence in today’s world. Back in 1995 when I ventured into the insurance and investment business the requirement was a Yellow Page ad for the same reason.
Google reviews satisfy my desire to acquire new customers. My website and Google business page effectively give us name recognition. If you ask Google for a tax preparer in my area, our name comes up first. Not H&R Block, Jackson Hewitt or any of the other big boys. Along with the company name and phone number, with one click they can go to my google business page where another click will show my google reviews or my website. I do not use Google ads.
Google reviews allow me to control the growth of my company to some degree as well. If I wish to slow growth or maintain size, I can just quit asking for new reviews for a while. Conversely if I wish to ratchet up the business growth, I can ask for more reviews.
One lesson I learned while managing a division of Gordon Jewelers was that effective advertising requires repeated exposure. At Gordon’s, I used a great deal of television advertising, and the statistics showed that it took about seven commercials for a message to become effective. You can imagine how much print advertising would be needed to produce equivalent results. Generating traffic is also difficult. To do it, you need to advertise a recognizable product at a strong value, available only for a limited time at that price.
I faced many questions from Aron Gordon, the owner of Gordon’s, for advertising a six-pack of Coke for 99 cents in our showrooms. I explained that we needed new customers and more store traffic, then suggested he visit a store when the promotion began. He did, and after seeing the crowd, he was convinced. The same principles apply whether you are advertising Coke, toothpaste, or diamonds—and I have used them successfully for all three.
When I first added tax preparation to my insurance business, I used flyers and occasionally offered free estimates. At the time, I had a storefront office in addition to my home office, but I closed the retail location when COVID hit and have not reopened one. Interestingly, I’ve done more business without the physical office than before. Nevertheless, when I sense skepticism due to no normal office, I ask “did you know the largest tax preparer in the U.S. has no offices at all?” They always ask who it is, and they are surprised with the answer: TurboTax.
Ultimately, I try to keep costs low and value high for my clients. And I prefer marketing methods that allow me to maintain an even keel client base. For me, that’s an in-home office, Practice Panda, and Google Reviews.