This 12 months, we launched the ninth version of our Excessive Progress Examine, together with a particular breakout report targeted on the consulting providers trade. At the moment, we’d wish to share just a few highlights from that report—findings entrepreneurs and executives at consulting companies might discover helpful as they attempt to make sense of {the marketplace} and plan for the longer term.
Talking of {the marketplace}—for 4 years operating, unpredictability and uncertainty have been the highest concern of companies throughout trade. You don’t should look arduous to grasp why. International wars, a polarized political surroundings, an upcoming election like no different and combined financial indicators are just some causes companies are viewing the longer term with warning.
However beneath the gloom is quite a lot of hope. The trade has accelerated its development every of the previous three years. And the bigger economic system has continued to increase, providing the chance that consulting companies will proceed to prosper.
On the identical time, synthetic intelligence made big strides ahead as ChapGPT, Gemini (previously Bard) and different generative AI applied sciences burst on the scene. Regardless of its present limitations, no one doubts AI’s potential—and companies, in addition to their shoppers, are wanting to harness the expertise’s efficiencies and analytical energy.
On this 12 months’s research, we give attention to that subset of companies that grows 3X quicker and is 2X extra worthwhile than their slower rising counterparts. Earlier than we dive into the research’s highlights, nonetheless, let’s study a bit concerning the research and the Excessive Progress companies which have a lot to show us.
In regards to the Examine
442 consulting providers companies participated on this 12 months’s Excessive Progress Examine, representing $13.5 billion in mixed income and nearly 97,000 staff. This was the biggest trade pattern within the research (see determine beneath).
Examine individuals symbolize companies of all sizes. They conduct enterprise in six continents.
Within the research, we grouped the collaborating companies into three classes: Excessive Progress (see definition within the part beneath), No Progress (those who skilled zero or detrimental development), and Common Progress (the steadiness of the pattern).
Meet the Excessive Progress Companies
We outline Excessive Progress companies as these companies that obtain at the very least 20% compound annual development over a three-year analysis interval. We distinction these companies in opposition to those who skilled little or no development over the identical timeframe. This enables us to determine methods and practices which might be related to quicker development and better income.
This 12 months’s Excessive Progress consulting companies grew at a median charge of 35%—greater than thrice quicker than common.
Excessive Progress companies are additionally extra worthwhile than their slower-growing rivals. Excessive Progress companies loved a revenue of 26%—greater than twice the speed of the No Progress group.
Subsequent, we take a look at 5 key elements that give these companies a aggressive benefit.
1: Excessive Progress Companies Don’t Spend Extra on Advertising
Excessive Progress companies spend the identical quantity on advertising and marketing as their No Progress friends—10% of revenues, not together with personnel compensation prices. But they obtain far superior efficiency. If the quantity you put money into advertising and marketing your providers isn’t correlated with success, what’s? For one factor, these companies are extra environment friendly. As an illustration, they’re extra superior of their adoption and use of expertise. On the identical time, these companies know the place to spend their restricted advertising and marketing {dollars} most successfully.
2: Excessive Progress Companies Know What Works
Under are the 5 advertising and marketing strategies used most frequently by Excessive Progress companies. On the prime of the record is networking on social media—primarily LinkedIn. LinkedIn is a good place to attach with new prospects, meet potential strategic companions, share helpful content material and display your experience. And it prices little greater than your time. Prime companies additionally put money into high-quality enterprise improvement supplies. These may embrace pitch decks, {qualifications} packages and proposal templates. Electronic mail advertising and marketing stays one of the simplest ways to nurture the prospects in your record, and Excessive Progress companies typically use it to share extremely related content material and provides with their audiences.
Public talking is a time-tested solution to construct visibility and credibility, whereas giving audiences a style of what it may be wish to work with you. It’s additionally a good way to place a private face in your model. And networking at dwell occasions supplies helpful face-to-face interplay with potential shoppers. Whereas this was as soon as the first manner consultants developed new enterprise, dwell networking is now simply half of a bigger built-in advertising and marketing technique.
Within the full consulting trade report, you possibly can entry the complete record for this and different charts on this publish. We additionally dive into which strategies present the best influence, as properly which offer probably the most influence for fewest {dollars} and hours spent.
3: They Are Extra More likely to Conduct Analysis
The Excessive Progress cohort was extra possible than the No Progress group to conduct formal analysis on their target market. Common analysis provides companies the flexibility to grasp the altering habits, preferences and desires of their patrons.
That mentioned, greater than 6 in 10 Excessive Progress companies do no analysis. We see this as a giant miss, particularly in unsure occasions when {the marketplace} is especially arduous to learn.
4: Excessive Progress Companies Outsource Extra Advertising Abilities
A method the Excessive Progress contingent creates efficiencies of their advertising and marketing is by outsourcing all kinds of specialised expertise. And so they do it way more typically than No Progress companies.
What are the benefits of outsourcing expertise? First, you often will spend much less for them, as you solely pay for what you want. Second, specialists are true consultants within the ability you want, and so they use the most recent instruments and strategies. Which means they are going to do it higher than any generalist. Third, they’re extra more likely to get outcomes. Relying on the exercise, they could even have the metrics to show it.
The highest 5 outsourced expertise are web site enhancements, graphic design and advertising and marketing supplies improvement, SEO and video manufacturing. Companies that attempt to do these items in-house sometimes find yourself with amateurish output and little to point out for his or her funding.
5: They Are Wanting Ahead
We requested research individuals what subjects and developments they wished to study this 12 months. We ask this query as a result of it provides us perception into the place companies—and most curiously, Excessive Progress companies—are focusing their consideration. It’s a manner of understanding the place they’re steering their boats.
Not surprisingly, synthetic intelligence surged to the highest of the record. AI, regardless of its well-publicized issues, is right here to remain, and it’ll more and more turn out to be an important a part of our instruments and workflows as time goes on. Technique got here in second. Companies that wish to stay aggressive perceive that technique is the place all of it begins. And no technique is ever set in stone. As {the marketplace} evolves, technique has to alter, and the highest performers comprehend it.
Deepening on-line engagement was final 12 months’s record topper. This 12 months it has dipped into third place. However tomorrow’s patrons aren’t going to desert Google, social media and different digital platforms any time quickly. If something, they are going to depend on these instruments much more to search out and consider skilled providers companies. Excessive Progress companies wish to be the place their audiences will discover them, and so they wish to maintain their consideration.
We talked about earlier that Excessive Progress companies had been extra digitally mature than their slower-growing counterparts. That doesn’t imply they’re resting on their laurels. They’re persevering with to put money into their digital transformation, and as AI turns into extra important to their aggressive benefit we count on this development to speed up. Lastly, Excessive Progress companies perceive they’re service suppliers, and most depend on repeat enterprise to maintain their development. Because of this, they’re in search of new methods to impress their shoppers and construct longer, extra satisfying relationships.
Market Your Agency the Excessive Progress Approach
Excessive Progress companies have realized the arduous manner find out how to construct a advertising and marketing program that delivers superb development and profitability 12 months after 12 months. The excellent news is you can, too. Utilizing the information on this 12 months’s Excessive Progress Examine you possibly can emulate these excessive flyers.
Begin by wanting on the knowledge and evaluating it to your individual advertising and marketing program. The place are the similarities, and the place are the variations? What are you able to implement and take a look at rapidly, and what may take an even bigger funding of money and time? Look not solely at what these companies are doing now, however what they’re planning on doing sooner or later.
This is identical knowledge we use to tell the recommendation we give our personal shoppers, and we’ve witnessed many outstanding outcomes after we apply the teachings we’ve realized from the trade’s greatest performers to consulting companies like yours. To study extra, you possibly can buy the complete trade report. Or you possibly can attain out to Hinge for hands-on steering and assist.
