What is Your Tax Business Marketing Mix?
Finding the right marketing for your tax business is important for so many reasons. A developed, concrete and executable marketing plan enables you to properly allocate resources to that area of the business. Unfortunately, this is one budgetary line item that many tax business owners dismiss as unnecessary spending. If done poorly or improperly, this can lead to wasted resources and a learning experience. If done properly marketing should always bring in more revenue than the expenditure itself. Tax Business marketing return-on-investment can be estimated if we are able to determine a response rate for each type of marketing campaign.
All marketing channels have a response rate. A response rate in traditional marketing is a percentage of responses that a business can expect based on the number of impressions or contacts made with a potential customer. Response rates vary by channel. For example, the expected response rate for direct mail is approximately 2% to be considered successful, but that rate varies based on several factors. Response rates for direct mail increase with additional mailings. Other traditional types of marketing include billboards, newspapers, and other print advertising.
Online marketing channels use different terms and phrases to express various forms of contact with potential customers. Impressions, click through rates, cost per conversion, etc. These metrics allow you to determine your ROI for the online marketing channels. Digital marketing methods include pay per click advertising, search engine optimization, specialty placement banners, and other niche methods.
The marketing mix that you select for your tax business will very likely be determined by your marketing budget. You might want to do everything possible to promote your tax preparation business, but without a large marketing budget for you will need to make some concessions. The cost of traditional methods of marketing is easily determined and you can set your own budget on digital marketing campaigns, so you can start by selecting methods that you like. For example, if you are not online very much, have very little experience with managing digital marketing campaigns, choosing an online campaign may not be a great idea.
Using a mix of traditional marketing methods complimented by online advertising is ideal, but certainly not required. If your tax office operates in a rural region with an aging population, you may be better off marketing your tax preparation business through primarily traditional methods.
If you’re a Federal Direct partner, you will automatically receive your tax marketing kit in early December. The marketing kit includes window decals, 10-12 large double sided posters (Eng/Span), and a large indoor/outdoor vinyl banner.
Federal Direct offers a marketing contribution to your marketing mix if you decided to do a marketing mass mailer. Federal Direct Tax Services will contribute up to $500 toward an eligible campaign, and we do the leg work. This will help increase your ROI in at least one area of your tax business marketing.
If you are a Federal Direct partner and would like to schedule a marketing consultation for your tax business, send an email to firstname.lastname@example.org. If you are an independent tax office looking for whole tax office solutions, give us a call at (866) 357-2052 to discuss partnership opportunities.
Posted: August 10, 2020