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Marketing for a limo service is one of the most tricky tasks in the limo business. You must get as much exposure to your service as possible.
Companies that provide limousine services for individuals, groups, and organizations need to have the best marketing techniques, especially if they are just starting. This article will give you some ideas on fantastic marketing strategies you’ll want to use to ensure your limo business flourishes.
Why Limousine Service is a Unique Business
Benefits for employees
The best limo services in the industry provide their drivers with paid vacation time, health care benefits, and other perks.
Tailored services
Limos are available in every shape, size, and color imaginable. A limo company owner can choose from a variety of different cars for clients based on their needs.
Service packages
For added revenue and convenience, companies can offer customers pre-arranged packages for specific occasions such as weddings or corporate events.
Set your schedule
When starting up your limo service, you get to set your schedule. You do not have to work at a particular time or for a certain number of hours. Whether you want to start an early morning shift or one late at night, it is all up to you and your needs.
Fun to run
The fun part about running a limousine service business is that you get to meet new people every day and offer them transportation services that they will never forget.
Tough economy
When the economy is good, the need for a limo service is low. However, when the economy is bad, more people are looking for transportation services like this. As demand goes up, so does the potential to make money.
Main Limousine Service Business Challenges
Trouble finding qualified drivers
According to the Bureau of Labor Statistics, the average number of job openings for chauffeurs and other driving jobs is 10,300 per year between 2014 and 2024. However, this is only an average and some years will be better than others.
Very high operating costs
Let’s face it: a limo is a luxury, and luxuries are expensive. From fuel to maintenance to insurance to driver salaries, you’re going to have to figure out ways to keep your operating costs at an acceptable level.
Tight competition
It’s a highly competitive industry and you have to be prepared for this. However, if you are well experienced in the field, you can do well. One way to be competitive is by offering value-priced services instead of trying to undercut your competitors on pricing. Once you get an appointment, try to get an additional booking while they are there.
Business permits and licenses
If you want to start and run a limo service business, you need to acquire the necessary business permits and licenses for the business. For example, in some states, you will need to acquire a chauffeur’s license before operating a limousine service. This may require you to study for several hours and take an exam on driving laws and rules as well as road safety before you can be granted a license. You also have to have proof of insurance before starting your business.
Heavy initial capital requirements
Before purchasing a fleet of new limos, make sure that your capital is enough to support the large purchase. If your capital is low or if your credit rating is poor, then getting financing from banks can be very challenging for you. You can still opt to pay for the initial cost out of your pocket then apply for financing once your company is doing well and profits are coming in regularly.
Finding new clients
When you’re just starting in this business, you’ll need to bring in new clients if you want to see any success at all. You can find new clients by joining online forums and responding to questions about your business or by using social media to get the word out about your business.
Budgeting for repair and maintenance
Vehicle repair and maintenance costs are important aspects of any limo service business. The company needs to take proper care of their vehicles so as not to incur more costs on repairs later on. Service requests should be handled immediately to avoid any major problems.
High turnover rate
Many companies are not able to gain repeat customers, and therefore, most of the income from their business comes from newer clients.
Pros and Cons of Limousine Service Business
Pros
- A limousine service business is the highest profit margin in the industry. The average profit margin is 75-80%!
- The demand for limos increases during special occasions like proms, weddings, bachelor/bachelorette parties, and even funeral services.
- No experience is required to start a limousine business.
- It’s possible to replace your old car and buy a new one after just one year of operation.
- Running your own limo service business allows you to visit places that you wouldn’t be able to go otherwise.
- You can start your business part-time while keeping your full-time job.
Cons
- Security concerns.
- Parking issues.
- Strict city regulations.
- Unpredictable demand.
- Limo services need more time and effort to run effectively.
Best Limousine Service Marketing Strategies
Branding
Branding is one of the most important parts of a business’ marketing plan. It helps people identify your company, and it can make a big difference in what people think of you, as well as how loyal they are to you as a brand. Branding is an integral part of any marketing campaign, including when you’re running a limousine service.
The key is to come up with branding that works for your company, so it stands out but also helps you connect with customers and potential patrons.
Here are some tips to get the process started:
Brand Your Business Consistently
The first thing you have to do when branding your limousine service is to make sure all the elements of your business are consistent from start to finish. That includes everything from your name and logo to the way that you speak to your clients and the way that your vehicles look. You want every person who comes into contact with your limo service to have the same experience, with no exceptions.
Find Your Voice
If there’s one thing every successful brand needs, it’s a unique and memorable voice. You need something that makes people take notice, something that makes them remember you, and something that connects with them on a personal level. A great example of this is Virgin America airlines, which has created a brand persona that’s fun, upbeat, and energetic — essentially the exact opposite of any other airline out there.
Find Something Memorable
Another important part of branding is finding something memorable. Whether it’s an image or slogan or jingle, you have to create something that sticks in people’s minds when they think about your company or brand.
Be Distinctive
Your brand should be memorable and unique, with a personality of its own. Think about how you want people to think of your company. Do you want them to think of you as sleek and modern? Fun and playful? Luxurious? Whatever your image, make sure your branding doesn’t send mixed signals. For example, don’t use an old-fashioned typeface if you’re trying to project an image of modernity. And make sure the colors you use are ones that appeal to your target audience.
Make a Logo
A logo is a great way to create recognition for your limousine service. It can also be used in advertising and on business cards, letterhead, and other promotional materials. The easiest and least expensive way to design a logo is to do it yourself using either word processing software or graphics software designed especially for this purpose. If you’re not creative or can’t get the look you want, though, consider hiring an artist or designer who has experience creating logos for businesses.
Word of mouth referrals
Word of mouth referrals is the highest quality lead generation. It’s also the most trusted and referred by other people.
Getting these referrals is also very easy and simple as long as you market it right, follow our tips and tricks on how to do word of mouth referrals as a limousine service marketing strategy:
- Promote your referral program
Let your customers know that you have a referral program in place. If they like your services, reward them for telling others about it in exchange for a discount or a free upgrade. Make sure that there are conditions that need to be met before they get the reward so that you can avoid fake referrals from them. This way, you will build loyalty among those who want to help you promote your business.
- Make it easy for them to refer others
Create an email address for referrals or a dedicated web page for their use. Make it easy for them to share their positive experience with others so that they can earn rewards in return. Remember to thank them for their efforts as well.
- Talk about your customers
Always give credit where credit is due. Share your customers’ opinions and endorsements via social media or print ads. If someone had a great experience with your company, use this to your advantage by letting others know about it.
Quality of service is key
If you are in the business of providing limousine services, then you must come up with great service strategies.
Of course, you know how important it is to provide high-quality service, but there are a few more things that you have to do if you want to provide the best service possible.
Treating your customers well is very important in this industry because the customers will determine whether or not you will be successful. If you can offer your customers the best service that they can find, then they will keep on coming back for more.
Your goal should be to make sure that your clients are very happy with your company and that they look forward to using your services again and again. Limousine services have been around for many years which means that many different companies are trying to attract clients for the business.
There are many ways you can use to make sure that your business is successful but only if you get it right the first time.
However, providing high-quality service is not always easy and there are some things that you need to keep in mind when trying to provide high-quality service as a limousine service marketing strategy.
- Treat all customers equally, regardless of how big or small their booking is. It is very easy to overlook the “small” booking as it might seem insignificant but remember this person could spread a lot of good word of mouth about your service, so make sure you are just as attentive to them as you are with larger clients.
- Train your employees properly. A good limo service will only employ staff who are well trained in all aspects of the job, from sales to maintenance. Make sure your employees have been on the job for at least three months before letting them work alone with customers. Also, if an employee has a bad attitude or does not put in the effort when training that person, don’t hire them in the first place. The last thing you want is unhappy customers because of bad staff training.
Create a strong online presence
Are you a limousine service owner looking to find a competitive edge in the market? You can do so by creating a strong online presence.
While you may have a stellar reputation and experience in the field, building an online presence can help you reach new customers who are likely looking for your services online.
Here are some tips on how to create a strong online presence as a limousine service marketing strategy:
- Create a fleet page: The first step to creating an online presence for your limo service is to create a fleet page on your website. The goal is to highlight pictures of each car in your fleet so that potential customers can see the vehicles they might use on their special day. This will also show future clients what they might get if they choose to hire your service instead of another one.
- Get social: Encourage your drivers to create social media profiles for themselves, and then use those profiles to drive customers to your business. Make sure they post photos of themselves with passengers and perhaps include some of your company’s branding in the background. Encourage them to connect with friends who might need transportation services in the future.
- Post content that appeals to your customers: Post content that is truly relevant to your customers on your website, blog, Facebook page, and other social media accounts. Include information about new products or services you’re offering, promotions you’re running, things going on in your industry that may be of interest to your clientele, and other useful tidbits they can use in their daily lives.
- Capture quality photos of your drivers and cars: It may be tempting to use photos of models or random images from other websites but remember that you want your customers to feel comfortable when choosing you as their limousine service provider. Use high-quality photos of your professional-looking drivers and their vehicles so that potential clients can envision themselves using them at their events.
Make offers
Offers are a great way to draw attention to your limo service. You can create an offer that is so enticing that people will want to use your service over another competitor.
Here are some tips on how to make offers as a limousine service marketing strategy:
Make it appealing
Make sure you have a good offer. Offers should always be appealing, otherwise, the consumer won’t be interested in using your company’s services. An example of an appealing offer is free upgrades, discounts, or complimentary services. If you have an offer that isn’t appealing, don’t expect many consumers to take action and sign up for it.
Keep it simple
Keep things simple and make sure the consumer doesn’t have to jump through hoops to receive the offer you’re trying to promote. When creating an offer for your company, think about how many steps there are for the consumer to get the deal and whether or not they will follow through with it. If there are more than two steps involved, you may want to reconsider how complicated it is.
Create urgency
You always want consumers who are interested in taking advantage of your company’s offers to act quickly. That’s why it’s important to create urgency by giving them a limited time frame in which they can sign up.
Know your audience
When you are trying to create offers for your customers, make sure that it is something that they will use or want. If you are creating an offer for a customer that does not like to travel, then chances are they will not care about the deal that you just made for them. Keep this in mind when creating offers for your customers so that it can be something that they will enjoy.
Find out who the local competitors are
In any market, there is going to be a lot of competition, but don’t let this stop you from trying to make an offer for your customers. Find out who your competition is and what they have been doing with their marketing strategies so that you can try something new or better than what they have been doing with their offers and promotions.
Make sure your offers are easy for customers to redeem
If possible, provide customers with multiple redemption options such as visiting your office or calling you directly. This will ensure that customers have no problem redeeming their offer and they will be more likely to use it in the future.
Offer freebies
When making an offer, make sure that it comes with a freebie. People love getting something for nothing, especially if it is related to their trip or event. For example, if you have a limousine service for weddings and other special events, offer your customers a bottle of champagne as part of their package deal. This will encourage them to choose you over others, even if it means paying more for your services upfront.
Final Thoughts
By having a well-defined marketing strategy it is possible to reach your goals faster.
A good limousine service marketing strategy should always contain the following elements; clear goals, target audience, keywords, target market, and of course a marketing budget.
