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Professional Employer Organizations (PEOs)

HCP offers professional marketing solutions that help administrative companies like Professional Employer Organizations—PEOs (but not to exclude ASOs and HROs) build solid sales and marketing strategies that grow their businesses. In our long history with individuals and businesses representing these industries, we have supported business growth and enabled them to develop teams equipped to “sell” more effectively, regardless of market conditions.

The PEO industry is one that survives and thrives by helping its client companies accept and adjust to new regulations and requirements. Over the past several years, however, the PEO industry itself has faced numerous challenges with respect to changing regulation by the passing of the Patient Protection & Affordable Care Act, the Department of Labor, the Federal Trade Commission and the Department of Homeland Security. Because of the lack of stability in the U.S. labor market and the degree to which PEO client companies look to PEOs for support, it has become even more vital to ensure that the PEO companies present a strong foundation of expertise to their own clients.

In the time spent working with these companies, HCP has identified three key areas of support for PEOs—Lead Generation, Sales Message Consistency and Client Retention vs. Churn.

Lead Generation

Situation: PEO sales representatives typically utilize a traditional approach when seeking new leads. This method is to reach out to friends, family, college contacts, etc., by phone or in person to determine whether the contact’s company could benefit from the PEO’s services.
Challenge: This method only extends so far, and can be extremely time consuming in the qualification process, due to a lack of “automation.”
HCP Approach: HCP has helped PEOs refine their selling process by utilizing direct mail, telemarketing, supporting a tradeshow presence (NAPEO is a prime example) and database management. These steps organize this phase in the selling process and better qualify the leads for the sales team, for a more efficient use of time as well as generation of leads. These steps also reverse some of the proactive work previously being conducted by the sales team and initiate a process where prospects seek out the PEO’s services.

Sales Message Consistency

Situation: Once a new client is brought on, the sales representative that the client has been interacting with moves the account over to an HR manager within the PEO. This becomes the new client’s new company contact.
Challenge: There can be a disconnection between what the sales contact has “sold” to the new client and what that HR manager can truly implement. If the reality does not align with the promise, then that creates a negative experience for the new client.
HCP Approach: HCP has helped PEOs develop a consistent message for its PEO clients through in-depth interviews of the PEO staff and an analysis of the consistent adoption of the brand throughout the company. At times this analysis has resulted in the development of an entirely new brand, a refinement in the message used to sell, a repackaging of the services offered, as well as a revamp of the corporate collateral and sales materials.

Client Retention vs. Churn

Situation: PEOs spend a great amount of focus and money on bringing on new clients to grow their businesses.
Challenge: At times, the focus on new clients outweighs the time and energy that needs to be
spent on keeping current clients happy, so that clients are not being lost at the same rate that they are onboarding.
HCP Approach: HCP helps PEOs to see and understand the value of building client loyalty and improving
client communication, as it yields word-of-mouth referrals to supplement organic growth. Through client satisfaction research, internal team interviews, quarterly advisory meetings, newsletter development, etc., HCP has helped its PEO clients build stronger connections with their own clients.

PEOs are not all alike; while some of HCP’s clients have identified “all of the above” as challenges, some may seek support for just one portion of their sales cycle. Regardless of the situation or need, HCP understands the PEO business and will work to analyze your current situation to develop the most cost-effective and appropriate recommendations.

 

 

 

 

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