In the world of Social Media Marketing Agencies (SMMA), many business owners face a common issue: retaining clients. Despite offering a seemingly logical deal of providing more value than the $2,000 a month they charge, many SMMA businesses struggle to keep their clients for more than a few months. This issue is rooted in the psychology of the consumer and how they perceive the value of the service provided.
When it comes to the consumers, they are not set up to accept this level of payment for any service provided by a human being. In fact, most people can’t name another vendor that they pay outside of their organization every month for an indefinite period of time. This means that not only are you charging them a considerable amount of money, but you are also doing so in perpetuity. Every month, when they look at their expenses, they might question the value they are getting for their money, leading to a potential cancellation of the service.
This psychological issue arises because the customer does not have the capacity to understand the service provided by the SMMA. The business owner is the expert, and the customer cannot equate their work with money. This lack of understanding makes the SMMA business vulnerable.
To overcome this issue, SMMA businesses must change their model and look at things that consumers keep forever, such as their power bill or internet bill. By positioning themselves as a monthly expense like these utilities, SMMA businesses can increase their chances of lasting four years instead of just four months. Additionally, the profit margin for the business owner also becomes a concern. Although they are putting in a lot of effort to produce results, the value they receive from the service might not match the amount they charge.
UpHex is a newer solution that addresses these issues. Launched in January of the previous year, UpHex has only recently hit the scene, but it has already shown promising results. The founder of UpHex used the service in his own agency and noticed a significant improvement in client retention. He went from lasting three months with clients to lasting several years with the help of UpHex.
In conclusion, SMMA businesses must take the psychology of their customers into consideration when pricing their services. By changing their model and positioning themselves as a monthly expense that lasts forever, SMMA businesses can improve their client retention and increase their profit margins. UpHex is a great solution for SMMA businesses looking to overcome these challenges.