The dilemma of running a promotion or investing in marketing is often a challenging one to answer for many professional service firms.
Both approaches have their merits, but if you’re looking to make a long-term impact, marketing is the wiser investment.
In this blog, we explain why.
Short-term gains vs long-term strategy
Promotions, such as discount sales, can provide a quick influx of clients and revenue when done correctly.
However, these are often short-lived.
Once the promotion ends, the surge in business usually tapers off, and you’re back to square one.
Moreover, frequent promotions can also devalue your services, making it difficult to charge premium rates in the future and creating a client base that is focused on low prices rather than loyalty, (more on this below).
Marketing, on the other hand, is a long-term strategy.
By investing in a marketing scheme with a professional agency, you’re not just buying a service – you’re investing in expertise.
A good agency (like JE Consulting) will conduct market research, identify your target audience, and develop a comprehensive strategy tailored to your firm’s needs.
These results may not be immediate, but they are sustainable, and they’ll grow over time.
Quality over quantity
The real issue here is that your return on investment (ROI) should be focusing on quality client interactions rather than numerous quick cash injections.
Promotions often attract bargain hunters who are only interested in the discounted rate your firm offers and may not return for future services if you start charging usual prices.
This is detrimental for professional service firms, where client relationships are paramount, and a loyal client may stay with you for many years.
Marketing, on the other hand, focuses on attracting quality leads who are genuinely interested in your services.
Through targeted campaigns, you can reach potential clients who are more likely to engage with your firm in the long term, thereby increasing lifetime customer value.
Brand building
Promotions do little to build your brand – in fact, they often make your services seem cheap as a high price is usually associated with high quality.
As our advertising expert, Jo Edwards, says:
“High prices are generally a sign of high quality. So, reducing your fees during a promotion is a signal to both potential and current clients that either your quality has dropped, or your services weren’t worth that much in the first place. Either one is a bad message to be putting out there.”
Promotions may get people through the door, but clients won’t necessarily remember you once the promotion is over.
Conversely, marketing is an ongoing process that helps to establish your brand’s voice, values, and reputation.
This is crucial for professional service firms, where trust and credibility are key factors in client acquisition and retention.
While marketing may require a larger initial outlay, the ROI is often higher than that of promotions.
According to various studies, businesses that invest in marketing see a higher ROI in the long run, both in terms of revenue and client retention.
Marketing is the best option for your firm
While promotions may offer a quick fix, they are not a sustainable strategy for long-term growth, so it is best to avoid them generally.
Investing in the services of a marketing agency, on the other hand, provides immediate benefits in terms of new clients and sets the foundation for future successes with a strong brand voice.
For professional service firms that have yet to take the plunge, consider allocating your budget to marketing for a more profitable and sustainable business model.
JE Consulting has over 25 years of experience providing advertising and marketing services to professional service firms like yours.
We cover the full spectrum of marketing. Everything from website building and blog writing to leaflet design and press releases.
Contact one of our experts to find out how we could help your firm thrive.
