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CHAMPAGNE MARKETING ON A BEER BUDGET
PEOs have a finite pool of capital which they can invest to grow and improve. PEOs can invest in making acquisitions, taking risk in insurance, building out a technology platform. and growing organically via sales and marketing. I have found that most PEOs have enough financial and operational capacity to do only two of those initiatives really well.
We have all seen the importance of marketing to a PEO’s overall growth. However, investing in marketing can be a money pit if you do not have a clear strategy and focus. A scattershot approach can quickly drain your financial resources with limited ROI.
Marketing on a limited budget requires a strategic and creative approach. It is critical to identify your target market and within that market who your target audience (buyer persona) is. Down to the most granular level, how would you describe the attributes of your target market? What are their pain points and requirements? What do they care about and why? How can you best get in front of your target audience?
Once you have a good sense of your target market and audience, then you can embark on a plan to invest in a marketing program. I believe the two primary goals of a marketing program are to: 1) generate leads; and 2) build brand awareness which will ultimately result in generating leads.
Here are some cost-effective ways to market your PEO.
CONTENT MARKETING
Create a blog on your website and regularly publish informative articles related to HR, employee management, compliance, and other relevant topics for small business owners. Share this content on social media and through email newsletters to establish yourself as an industry expert and attract potential customers. The biggest challenge with this is figuring out who will write the content. Should you produce the content in-house or outsource it? If you choose the outsourcing route, consider utilizing a contractor via Upwork or another contractor marketplace. You can also leverage artificial intelligence to help get you started with an article, but I would not advise using AI solely for content generation at this point.
SOCIAL MEDIA ENGAGEMENT
Leverage social media platforms like LinkedIn, Facebook, and Twitter (or X now) to engage with your target audience. Join relevant groups, participate in discussions, share valuable content, and address questions or concerns. Social media can help build brand awareness and credibility. Using an internal resource to manage social media or an outsourced resource is the best approach.
REFERRAL PROGRAM
Implement a referral program where your existing clients can refer new businesses to your PEO. Offer incentives or discounts to both the referrer and the referred business. Word-of-mouth marketing can be powerful and cost-effective. Leads from trusted referral sources have a higher close ratio than other lead sources.
FREE WEBINARS AND WORKSHOPS
Host online webinars or in-person workshops on HR-related topics that would interest small business owners. This establishes your expertise while providing value to potential customers. Collaborating with a referral partner can help ease the burden of executing and delivering on these webinars and workshops.
PARTNERSHIPS AND COLLABORATIONS
Forge partnerships with complementary businesses, such as accounting firms, business consultants, or insurance providers, to cross-promote each other's services. It can help you reach a broader audience without significant costs. Explore splitting the cost of an association or trade group sponsorship with a partner.
LOCAL NETWORKING
Attend local business events, Chamber of Commerce meetings, and industry conferences to connect with potential clients face-to-face. Networking allows you to build relationships and showcase your services directly to interested parties. It is much more cost effective to attend these events versus sponsoring. Reserve sponsorships for events that you have attended in the past and have a high level of confidence in obtaining a ROI.
EMAIL MARKETING
Build an email list of potential clients and send regular newsletters with useful content, updates, and exclusive offers. Email marketing is an effective way to nurture leads and convert them into customers. It is important of course to abide by any can-spam regulations.
OPTIMIZE YOUR WEBSITE
Ensure your website is well-designed, mobile-friendly, and optimized for search engines. Use relevant keywords and phrases to improve organic search visibility. Optimize for keywords that directly appeal to your target market and audience. For example, if you are based in Alaska and have a focus on serving Alaska-based companies, then optimizing for keywords such as “Alaska PEO” would likely be a smart endeavor.
CASE STUDIES AND TESTIMONIALS
Request testimonials from satisfied clients and create case studies showcasing successful partnerships with other businesses. Display these on your website and in marketing materials to build trust and credibility.
FREE RESOURCES AND TOOLS
Offer free HR resources, such as templates for employee handbooks, policy guides, tax calculators or compliance checklists. Providing valuable tools can attract potential clients and demonstrate the value of your services.
HOST OR PARTICIPATE ON A PODCAST
Start or participate on a podcast where you discuss HR and business-related topics. Podcasts are a growing medium and can help you reach a new audience. After the podcast is published, utilize social media and your email newsletter to market the podcast.
SOCIAL PROOF
Encourage satisfied clients to leave positive reviews on platforms like Google My Business, Trustpilot or other business review websites. Positive reviews can significantly impact potential customers' decision-making process.
Remember to track the performance of your marketing efforts to identify what works best for your business. Be patient and consistent in your marketing efforts, as building brand awareness and attracting new clients can take time, especially with a limited budget. At the same time, if you are not seeing a ROI from a marketing activity don’t be shy about cancelling that investment and redirecting that spend elsewhere. It is important that your sales team ask each and every prospect how they heard about your PEO. The only way to know what is working is to track and review lead sources and other marketing KPIs on a regular basis.
MARK SINATRA
CEO
Aspen HR
Dallas, TX