A professional employer organization, or PEO, is an organization that brings together companies and service providers to offer combined benefits to their clients. This can range from access to a broader pool of talent, cost savings through sharing of office space and resources, and other operational efficiencies. In order to successfully create and market an effective PEO business, it’s important to have a clear plan in mind. Start by identifying the unique value proposition your company can provide to both its current clients and future ones through the creation of a PEO. From there, expand your plan by considering the key factors that will drive success or failure.
How to Create An Effective PEO Value Proposition
To successfully create an effective PEO value proposition, start by answering these key questions:
- What is the value proposition that you want your PEO business to convey?
- How will you communicate this value proposition to prospective clients?
- What are the unique benefits of working with your company over other PEO vendors?
- What is the cost of operating your PEO? How much can you charge your clients?
- What is the typical engagement length? What are some typical benefits and contract terms that clients are looking for?
- How does your PEO fit in with your overall business strategy and other current initiatives?
Key Factors In The Success Of A PEO
- Quality of service - The highest-quality PEOs will have a proven track record of achieving results for their clients and be staffed with experienced, highly skilled professionals.
In addition, they will also offer benefits that are comparable to those offered by traditional employers, while being compliant with FCA regulations.
- Cost of service - Whether operating as a hybrid, direct-only, or third-party-broker service, the cost of operating a PEO is generally minimized through the use of economies of scale, standardized processes, and technologies.
- Market penetration - The success of a PEO depends, in part, on the success of its clients in gaining visibility and recognition among hiring managers.
- Preemption strategy - PEOs need to optimize the timeliness of their services in order to remain competitive with other vendors. Some PEOs have opted to prioritize the timely delivery of service, as opposed to maximizing the number of engagements that each employee can deliver per week.
Develop a Marketing Plan For Your PEO Business
Now that you have a clear understanding of your PEO business value proposition and key factors that will drive success, it’s time to develop a marketing plan aimed at accelerating growth and bringing in new clients.
- Set goals for marketing spending - Having clear expectations for the marketing budget for your PEO business will help you avoid end-of-year budget overruns and ensure that you are focused on the right metrics. In addition, it will help you make the most of your limited marketing budget by implementing a multi-channel marketing strategy tailored to the needs and preferences of your target audience.
- Create lead magnets and email campaigns - Lead magnets are content pieces that you can use to earn additional leads. While they can be created using a variety of content marketing strategies, lead magnets are typically designed to be used across multiple marketing channels, such as email, social media, and website content.
- Conduct search engine optimization (SEO) and pay-per-click (PPC) campaigns - These campaigns are intended to help boost your company’s visibility and ranking on search engines, increasing the likelihood that potential clients will arrive at your PEO website from a Google search result.
- Use email marketing automation - Email marketing automation is a proven method for driving high volumes of qualified prospect leads to your PEO marketing campaigns. With the help of an email marketing automation system, you can create and publish multiple campaigns, track open rates and click-through rates, schedule email delivery, and more.
- Use third-party apps and services - PEOs that are successful also tend to be those that use a variety of tools and services that support their marketing efforts. Some of the more common marketing channels for PEOs include email marketing, social media, website analytics, and marketing automation.
With the proper planning, research, and implementation, creating an effective PEO business is possible. The key is to start early and stay diligent. Research the competitive landscape and key factors driving success among PEOs. Once you have identified your ideal target audience, make sure to test different messages and copy to see what resonates best with them.
From there, test different channels for marketing your PEO business. Consider using email, social media, websites, and other channels to appeal to a variety of different audiences. This will provide you with an optimal mix of leads and improve the overall effectiveness of your marketing efforts.
Finally, once you have identified a viable marketing strategy, it’s important to remain focused on implementing it effectively. If you allow outside factors (such as hiring a new employee, getting a new client, etc.) to distract you, you may find yourself losing steam on your marketing initiatives and losing ground to other PEOs.