The Hinge Research Institute – a division of one of the nation’s smartest B2B marketing consultancies – recently published the results of its survey of 530 professional services firms representing accounting and finance; technology; marketing and communications; architecture; engineering and construction; legal; and management consulting disciplines.
In its report, 2015 Professional Services Marketing Priorities, Hinge examined current business challenges and approaches to implementing marketing initiatives at small and medium-sized firms, with annual revenues ranging from less than $5 million to more than $100 million. Owners, partners and principals represented 60% of survey respondents, marketing professionals represented 23%, and the balance were operational or senior level decision-makers at those firms.
Although this was not the intention of this study, or the expressed conclusions of Hinge, the research findings provide insight into why marketing fails to deliver a reasonable return at most professional services firms.
Failure to Connect the Dots
In the Hinge research, here’s how small and medium sized professional services firms ranked their current business challenges:
- No surprises here. “Attracting and developing new business” (72.1%) is understandably the most significant challenge for any business;
- However… “Strategy / Planning Issues” (26.8%) are either something professional services firms believe they have under control; are not greatly concerned about; or fail to associate with new business development.
Activity without Purpose or Accountability
The apparent disconnect between strategy / planning and actual marketplace results is reinforced in the marketing initiatives that professional services firms planned for 2015.
According to the Hinge survey, the focus of most professional services firms is on the tactical aspects of marketing, reflected in their plans to:
- Increase the visibility of their brand (57.9%) and their experts (54.5%)
- Upgrade their websites (54.9%)
- Make clients more aware of services (53.5%)
- Create content marketing programs (47.2%)
Conversely, the strategic aspects of marketing are all at the bottom of the 2015 to-do list for most professional services firms:
- Develop marketing strategy / plan (45.5%)
- Find stronger competitive advantage (40.8%)
- Conduct research on target market (33.8%)
- Conduct client satisfaction research (22.7%)
It might be argued that strategic marketing tasks did not make the list of 2015 planned initiatives because professional services firms already have those disciplines covered. But our own experience counseling professional services firms over the past 20 years suggests otherwise.
One of the first questions we ask a new or prospective client is this: “Do you have a written marketing plan?” Most often, and consistent with the Hinge study, the answer we receive from them is “No.”
Who’s to blame for unmet expectations in marketing professional services: The senior managers who focus on tactics without a strategic foundation? Or the marketing professionals who should know better?