It is impossible to grow a digital agency without acquiring clients. While you might be doing everything to promote your business, there is one way to grow without spending any money: verticalization.
Verticalization is the process by which your agency becomes industry-specific. You can choose to focus on one industry instead of ecommerce, home services, or healthcare.
We’ll see why focusing on a smaller market is an effective way to grow faster. Let’s also see how to do this efficiently and effectively.
Verticalization is a great way to grow your business.
Athletes in sports specialize in skills that will help them to become the best in a particular event. Sprinters who spend time training in the shot put will not win many races.
A marketing company that becomes an expert in one vertical will perform better than a generalist. This success will lead to a reputation as a go-to agency by other businesses within the same vertical.
More relevant referrals
Why would you want a SaaS client to know the results that you have achieved for a traditional client? They don’t.
If you only work in one industry, the testimonials and reviews you receive will be from companies that are very similar to those you’re trying to sign. You can help your prospects feel more confident about you by presenting them with feedback from other people who are facing the same issues as they are.
Value of lifetime increase
Offering more services to clients and keeping them around longer are the keys to increasing Client Lifetime Value.
You can apply your insider knowledge to other services as you develop it. This gives you the opportunity to grow by cross-selling or adding on add-ons.
Say you run PPC campaigns for real estate professionals. You will gain valuable knowledge on real estate marketing, which can be applied to organic social media and content creation.
These additional services will make your agency more valuable to each client. This means that you’ll have less turnover. When you don’t have to replace lost clients with new ones, it’s much easier to grow.
Expertise builds trust
It’s much easier to become a specialist in PPC when you work with e-commerce clients than if you have to deal with multiple verticals. You’ll be able to explain the problems and solutions that each prospect has in terms they can understand.
You’ll also be able to solve the challenges of each prospect confidently. Your marketing proposal will be more persuasive.
Scale up more efficiently.
You’ll need to implement different strategies if you manage PPC spending across multiple industries. You may need to guide prospects over a long sales cycle for a SaaS client, while a retail outlet needs you to increase your ads in Q4.
You can replicate accounts for clients by representing businesses in only one vertical. You can onboard new clients more efficiently, deliver better results quicker, and reduce overhead.
Reduce your competition
Many agencies are multi-vertical. There are fewer agencies that only service restaurant chains and home repair and maintenance companies.
You can charge more for your services than your competitors since you are the industry leader.
Verticalize your business in 7 steps.
Verticalization is not a big undertaking. It’s the commitment that is difficult. You will feel awkward turning away clients who are not in your niche.
Follow these seven steps to find the niches that will bring you riches.
Select a vertical
For many agencies, this is the hardest step to take for two reasons. You’ll experience FOMO if you see opportunities in another industry. This step will require some research.
Keyword Research is the best friend you can have here. Why? Demand is evident if people search for an agency that specializes in a particular vertical.
The US searches for “restaurant marketing agency” or “dental marketing agency” a few hundred times per month, indicating a high demand. The “dance school marketing agency” is not searched at all.
Study your industry
Do you know the industry that you’d like to work in? Good. It’s time to start studying.
Answering these questions will help you gain the trust of advertisers within your vertical.
- What are the common problems?
- What are the common obstacles to Growth?
- What is the goal of these companies?
- What are they trying? How long does the average sale cycle last?
Follow Reddit threads and industry Slack groups, as well as influencers in X (FKA Twitter) and LinkedIn, to find answers.
Empathy is a key component of the project. Try to put yourself in the shoes of your target audience whenever you are learning about their industry. This will allow you to market their company more effectively, and your pitches will be more persuasive.
Develop a strategy
All the knowledge you have acquired will pay off here. It would be best if you started thinking about strategy before you begin pitching. You have to think of funnels.
What are the conversions like in your industry?
You’ve decided that you want to focus on the local gym market. Ask yourself, what do gym owners think of conversions? You can probably think of things like watching Facebook videos, calling a gym, signing up for a Newsletter, or downloading a guide.
After you have determined your conversion actions, you need to determine how you will drive them. Target audiences that are similar to the gym’s current customers to get video views. Target people who have watched at least 50% of the videos to drive content downloads. You can use the contact details you receive from content downloads in order to offer free trials. You get the picture.
Have you noticed how the same strategy that you use for your first client also works for your other clients? This is how you can scale fast.
New prospects are always available.
Rubber, meet the road. You have a full-funnel marketing plan that is tailored to a particular industry. It’s now time to find new clients.
Google searches are a great place to begin. Enter keywords related to your ideal client, such as “dentists nearby” or “small retailers in Oregon.”
Search online business directories such as Yelp to find companies that are active and have positive reviews. These businesses are easier to sell because they value online traffic.
Finding your first client’s
social evidence is a great way to showcase your first client’s success. Use it to attract new clients.
Asking for reviews and references from clients is not something to be ashamed of. You may find it strange at first, but most people are used to being asked for thoughts. Include the request in your emails and invoices. Also, include a link to your website that allows people to rate your business on Google.
Use testimonials from customers to create case studies and post them on your website. You can add them to your future client pitches. You can use it anywhere that a little social proof is needed to win new clients.