PSA on LSA
PSA on LSA Ranking
No Magic Solution
In the competitive landscape of home services, many business owners are on the hunt for a magic bullet to propel their Local Service Ads (LSA) rankings into the top three. They dream of a quick fix, akin to black hat Google Business Profile (GBP) tactics. But let’s face it, LSA operates in a more controlled environment with fewer ranking factors. After years of data studies, one thing remains clear: review count is king, with responsiveness and review score close behind.
LSA ranking relies on a few key levers:
- Review Quantity and Quality: The number of reviews and their star ratings.
- Responsiveness: How promptly you respond to inquiries.
- Proximity to the User’s Location: Your physical location relative to the searcher.
- Business Hours: Aligning with peak search times.
- Complaint History: Avoiding serious or repeated complaints.
- Budget and Bid: Although often maxed out, their influence is less significant.
While budget and bid might seem like areas to tweak, they offer little advantage since most businesses max these out. The real differentiators are review management, responsiveness, and accurate business information.
Unlike Google Ads, where you continuously create campaigns and optimize strategies, LSA is more static. Elements like business hours and services offered are tied closely to operations. So, paying a 20% management fee? That’s just madness. Focus on the basics: more reviews, high responsiveness, and accurate info. No shortcuts—just consistent effort.
The Stats and How To Work Them
The top question we hear: “How can I scale my LSA?” Local Service Ads, or Google Guarantee, offer a hefty return on ad spend (ROAS), often 10-20x for many clients.
I’ve commissioned extensive data studies over the years to uncover what truly drives LSA rankings. We analyzed data from various accounts to pinpoint key factors and their evolving importance.
Here’s what we found:
- Review Quantity: Correlation value of 0.29 with lead volume, highlighting the strong association between more reviews and more leads.
- Responsiveness: Correlation value of 0.25, showing how prompt responses significantly impact lead count.
- Star Rating: While important, it had a lower correlation value of 0.092 compared to review quantity and responsiveness.
These findings confirm that review count is the most influential factor, followed by responsiveness and star ratings. For example, a business with 1,000 reviews will significantly outperform one with fewer. Breaking it down, gaining just three reviews per day with ten technicians means hitting 1,000 reviews in less than two months.
Here are strategies to maximize your review acquisition:
- On-Site Technician Requests: Have techs hand customers tablets with the review link, or pull it up on their phones. Emphasize that their feedback impacts company performance. Or better yet, equip them with Tap Tags, so the laws of reciprocity compel a great review right then and there.
- Automate Emails and Texts: Set up automated follow-ups after each service, requesting reviews.
- CSR Follow-ups: Customer Service Representatives should follow up with customers who haven’t left a review within 24 hours.
- Manager Follow-ups: If no review is given, managers should call the next day to understand why and seek improvement.
- Automate Review Responses: Use AI to let customers know their feedback is valued.
Aim to be in the top two for review count in your market. Simply Google your trade in your area and see where you stand. Make it a goal to be #1 or #2 to truly maximize lead volume. Don’t settle—make this a team priority and show daily progress to encourage everyone.
More reviews lead to better visibility, more calls, and higher revenue. Investing in training and incentivizing your team to prioritize reviews can transform your LSA performance. Imagine scaling your LSA spend from $100/month ($1,000 revenue) to $10,000/month ($100,000 revenue), driven by focused review acquisition.
Understanding and leveraging these key factors—review quantity, responsiveness, and star rating—can significantly enhance your LSA performance. By focusing on these elements and maintaining consistent effort, you can achieve substantial improvements in your ranking and lead generation through LSA.
What We Do
At Free Agency, we approach LSA management with efficiency, transparency, and a bit of Robin Hood flair. While we don’t claim to specialize solely in LSA, we know where the inefficiencies lie and tackle them head-on.
Here’s how we help:
- Call Listening and Disputes: Reviewing calls to ensure quality and disputing invalid leads under Google’s guidelines. Note that disputes for services outside the service area will no longer be valid after June 2024.
- Mark Bookings with Type and Zip Code: Tracking each booking to identify trends and optimize targeting.
- Review Requests Via Email: Automating review requests for consistency and maximizing acquisition.
- Monitoring Business Verification: Continuously monitoring your status to ensure your profile remains active and trusted by Google.
- Monitoring Visibility: Keeping an eye on your ranking and visibility, providing regular reports and insights.
- Monthly Reporting: Delivering detailed monthly reports that give you a clear picture of your LSA performance and areas for improvement.
Our approach is straightforward and cost-effective. Instead of charging a percentage of your ad spend, which adds up quickly, we offer flat-rate services that are affordable and transparent. We focus on overarching CMO-level alignment and strategy, leveraging exceptional terms and partnerships. We’ve taken on services like Automations, LSA, and Yelp to enhance results and eliminate unjustified fees.
Cost Comparisons: Agency vs. In-House vs. Flat Rate
Most clients only need our starter package at $250/month. Our highest volume LSA package is $1,000/month for up to 1,000 calls. If you’re spending $50/lead on 1,000 calls a month, that’s $50,000/month on LSA. An agency charging 10-20% would cost you $5,000-$10,000 for the same service we offer for $1,000/month.
For businesses with less active profiles, managing LSA in-house might make sense until your activity levels increase. However, for active profiles generating significant call volumes, outsourcing to a specialized service can be more efficient and cost-effective.
Here’s a quick comparison of costs:
- In-House Management: If your CSR makes $15/hour and your profile generates 250 calls/month:
- 250 calls x 5 minutes = 1,250 minutes
- 1,250 minutes / 60 = 20.83 hours
- 20.83 hours x $15 = $312.50/month
Even if your CSRs are superhuman and process calls efficiently, it’s still more cost-effective to outsource. More importantly, CSRs should focus on higher-value activities that drive your business forward. These activities include:
- Outbound Calls: Following up on installs to reinforce purchase decisions, answer questions, and request reviews.
- Service Follow-ups: Calling service customers to request reviews and ensure satisfaction.
- Membership Calls: Reminding members of maintenance schedules and offering renewals to non-members.
- Lead Follow-ups: Texting, emailing, and calling leads that didn’t book to nurture and convert them.
By outsourcing repetitive tasks to us, you free up your team to concentrate on delivering exceptional service and growing your business.
In summary, our goal is to provide you with the tools and support needed to excel in your LSA efforts. With our flat-rate LSA services, you get expert management and optimization without breaking the bank, allowing you to focus on what you do best—serving your customers and growing your business.