1. Top 5 Ways Buyers Identify Professional Services Providers
Among the many ways to identify professional services providers, which are the top ways to identify and learn more about them? Referrals and awareness methods.
73 - 79% of decision makers reported they are "somewhat" to "very" likely to use referrals and awareness methods to identify providers.
Methods Buyers are Very / Somewhat Likely to Use to Initially Identify and Learn More about Professional Services Providers
Comment from report authors, Mike Schultz and John Doerr, "While all referrals are great, not all referrals are equal. The relative strength of the referral depends upon the level of trust that already exists between the person giving the referral and the prospective client.
A service provider benefiting from a referral is able to draw upon this pre-established or “transferred” trust. Since referrals are such a top-tier marketing method it is clearly worth providers’ time to deliver services worthy of glowing referrals and cultivate word-of-mouth ambassadors in their existing clients and contacts through proactive referral programs."
2. Your Website: The Ultimate Decision for Buyers
How important is your website? Very! Fifty-eight percent of buyers indicated they are "very" or "somewhat" likely to identify and learn about service providers using their websites, and 80% of buyers indicated they typically visit the service provider's website before buying. Your website has gained significant influence since 2005.
- In 2005, 69% of buyers assigned websites at least "some influence" over their decision to engage in initial discussions with that service provider and only 51% of buyers assigned websites at least "some influence" over the ultimate purchasing decision.
- In 2008, 83% of buyers report the service provider's website holds at least "some influence" over their decision to engage in initial discussions with that service provider and nearly three-quarters (74%) of buyers said the service provider's website holds at least "some influence" over their ultimate decision to buy services from the provider.
Influence of Provider's Website over Initial Discussions and Ultimate Decision to Hire a Service Provider
Comment from report authors, Mike Schultz and John Doerr, "Think of your website as the hub for your marketing and thought leadership activities. It is the portal clients and prospects are using to learn more about your services, register for events, read articles and research, sign up for a newsletter, download white papers, read case studies, etc. It is the place they go to interact with your brand."
3. Top 4 Factors in a Buyer's Decision to Hire a Service Provider
We asked buyers to rank the factors most important in their company's decision to choose a service provider, nearly all (90%) said that the overall value the provider can deliver is "extremely" or "very important" in their hiring decision. The other top factors are listed below:
Importance of Factors in Hiring Decision
Extremely/Very Important
What buyers say:
“Articulate a clear understanding of my needs and the demonstrated ability to meet them. The provider must do their homework prior to our meeting or discussion.”
“Show me how you will deliver results to my business and the ways in which you can provide value to me. I want to know the specifics.”
4. Top 4 Ways to Build Trust with Buyers
How can potential service providers build initial trust with buyers? This open-ended question provided a view of how decision makers view the elements of trust in the selling relationship.
Ways to Build Trust with Potential Buyers
What buyers say:
“I develop trust by how they react to my questions in person. If I feel they aren't being completely truthful I disregard them as a possible service provider.”
“There is no single defining moment in which the new service provider can immediately gain trust, but the initial first impression I have based upon the provider's conduct, personality, and professionalism will be a heavy factor.”
5. Top Problems Buyers Encountered when Selecting a Service Provider
There are many areas in which sellers of professional services can improve, including: listening better, promptly responding to requests, and understanding the prospect needs.
Problems Buyers Encountered During the Services Purchase Process
On a brighter note, providers have improved in certain areas since 2005. Buyers in 2008 were less likely than those in the 2005 study to have experienced several problems, including:
- Seemed to lack enthusiasm for winning my business (only 15% in 2008 vs. 24% in 2005)
- Poor writing skills (only 10% in 2008 vs. 18% in 2005)
- Did not understand my needs (only 30% in 2008 vs. 40% in 2005)
- Did not craft a compelling solution to my needs (only 22% in 2008 vs. 32% in 2005)
- Examples of past work were inappropriate for my needs (only 13% in 2008 vs. 20% in 2005)
Analysis, Commentary, and Observations from Mike Schultz and John Doerr:
Clients are Waiting: It's Your Move:
Service providers often lament the difficulty of unseating an incumbent service provider. The switching data suggests that business is out there for the taking. As advisors to professional services firms, we wholeheartedly agree as we continue to observe significant openness on behalf of buyers to entertain discussions on switching to new service providers.
However, most of these decision makers are not going to be persuaded easily to switch providers. While potential clients may be willing—even itching—to switch, in our experience, service providers are often unwilling or unable to do what they must do to initially engage new prospects and then win their business. For the service provider willing to make the effort, the balance of this report provides insight into what to do (and what to avoid) while pursuing new clients.
In-Person Impression Power:
While seeing a service provider deliver at an event and brand recognition seem somewhat unrelated, a closer look reveals a strong linkage. Many people (product and service providers alike) equate “brand” with logos, taglines, and advertising. But, what product marketers are trying to do is get you to recognize a product, to identify what it is or does, remember it when you have the purchasing need, and then, when you’re going to make a purchase, prefer their product to a competitor’s.
It only takes one strong seminar or conference delivery to make a lasting and memorable impression, and due to the highly interactive person-to-person nature of these events, it is almost unavoidable that the decision maker will form an opinion as to whether they might prefer to work with this provider.
Multi-Step Marketing for Success:
When decision makers are considering attending an event, they almost always visit the provider’s website (a third tier tactic) before making their decision.
When you are determining your marketing mix, make sure you understand how each method can be used. The methods at your disposal are not always a direct line to a purchasing decision, but they often play an important part in the overall scheme of building a relationship with potential clients. Remember that successful marketing for service firms is often a multi-step process involving a number of different tactics.
Economic Challenges, Business Opportunities:
The 2009-2010 outlook is uncertain at best and goes downhill from there. At the time of this report’s writing (December 2008), there’s practically no good economic news in the national news media. With the business environment so challenging, higher importance of overall fees in the purchase decision, and with more sophisticated competition, firms should expect a dogfight for winning new business.
Still, good service providers should not be disheartened. While the national news media and economic experts paint a decidedly gloomy picture, we at the Wellesley Hills Group and RainToday.com are encouraged by the number of service firms we know of that are experiencing good years, encountering no more than minor problems due to the economy, and remaining decidedly optimistic about the near future for their firms. From an anecdotal perspective, a common denominator of the firms that are doing well is a commitment to consistent and ever-sophisticated marketing and business development efforts and a little bit of luck regarding selling to target markets other than banking, financial services, and other hard hit industries.
Feel free to use any data, charts, or analysis laid out on this page for your own publication. If you would like to schedule an interview with one of the report authors, contact Kelly Kerr- kkerr@raintoday.com.