While the typical tax season only lasts four to five months out of the year, growing your tax business is a year-round effort. Whether you’ve been in the tax business for 10 years or are just starting out, retaining your existing clients and attracting new ones is key to building a sustainable tax preparation business. Here are four actionable strategies you can use right now to build customer loyalty, earn referrals, and attract new clients.
1. Put yourself in your customer’s shoes
The first step to growing your tax business is to understand your customers and their needs. Do you have a typical client, or do you serve one or two specific niche markets? If the latter is true, analyze what their biggest tax concerns are. Are your clients military and typically need help knowing when they qualify for tax exemptions? Or do you work with small business owners who need to maximize deductions to reduce their tax bill? If you have a typical client, understand their needs and take the time to identify where gaps in your service exist. This will enable you to quickly improve your services and features and gain repeat customers and referrals.
2. Connect with your community
Did you know that 92% of people trust recommendations from friends and family over advertisements? And did you know that 74% of people make purchasing decisions based on word of mouth?Digital marketing and social media campaigns can only go so far. Be active in your community and meet face-to-face with potential customers you want to serve.
This means you need to have a 30-second elevator pitch ready for every opportunity. When the nonprofit coordinator at your church complains about the upcoming tax season, step in and offer your service. Or, the next time you speak to small business owners about partnership taxes at a Chamber of Commerce event, give them some specific advice before handing them your business card.
Another way to attract new customers is to ask your existing customers for referrals. You can also offer these customers a discount on your services for each new customer they refer to you.
3. Work with a Niche Audience in the Tax Field
It may seem counterintuitive to narrow your audience and grow your business, but it’s actually the opposite. Customers prefer specialists over generalists. So if you can become an expert in a few specific areas, like partnerships or preparing tax returns for military and veterans, you can focus on learning the intricacies of tax law for these specific audiences.
Building a niche tax audience also allows you to develop a powerful marketing strategy specific to the needs of your target market. For example, if partnerships are your specialty, you can target your email campaigns to small business owners or post on LinkedIn about the details of preparing 1065 forms.
As an expert in a niche market, you can also reach customers outside of your area. For example, if you specialize in preparing tax returns for veterans in the Southeast, you can appeal to a broader audience who may not have tax preparers in your area who are familiar with the special deductions and exemptions for veterans in that state.
If you specialize in tax services, you may also be charged higher fees. Clients may be willing to pay more for a tax preparer who understands their particular situation and has experience preparing tax returns for people like them.
Before entering a niche market, it is important to thoroughly research and understand the tax laws relevant to your target audience. Read relevant IRS publications and join social media groups in your field to understand your audience’s tax concerns.
4. Create a full-fledged marketing plan that appeals to your target audience
Once you have found your niche, your next task is to attract new customers. So invest in your marketing and advertising efforts and tailor them to your target audience.
- Create a website that promotes your services to your target market. If you want to focus your tax practice on preparing military tax returns, talk about your expertise in military deductions, tax credits, and tax exemptions.
- Create social media profiles for your business and focus on the platforms where your target customers spend their time. For example, potential partnerships are more likely to be found on LinkedIn, while military veterans are more likely to gravitate towards Facebook. Try your best to interact with your customers and potential customers in a natural way, not one that involves shameless self-promotion. Get your tax and business-related questions answered and get advice you can trust.
- Run an email marketing campaign specific to your niche. If your readers are military, send them a monthly e-newsletter with tax tips, such as tax exemptions for soldiers in combat zones and tax considerations for military families when relocating permanently.
- Ask existing clients in your area of expertise to recommend their friends and colleagues. For example, getting the word out about your expertise in drafting partnership statements could lead to a steady influx of new clients.
Are you ready to start developing a plan to grow your tax business? There are a wealth of resources to help you develop new marketing strategies and better target niche clients, as well as specialized tax software to help you achieve your goals. Whatever your long-term growth goals are, whether you just want to get a few new clients as a solopreneur or build a larger tax office with more tax preparers, you need to understand your clients’ specific needs and work to meet them. Targeted marketing to your ideal client base will benefit the growth of your new business and help sustain your tax preparation business in the long term.
- Top 7 Countries Leading the World in IQ Levels - November 8, 2024
- Boost Your Savings: Tips to Maximize Interest Earnings After the Fed’s Rate Cut - November 8, 2024
- Cleveland Cavaliers Make History with 9-0 Start After Beating New Orleans Pelicans - November 7, 2024
