This 12 months, we launched the ninth version of our Excessive Progress Research, together with a particular breakout report centered on the consulting companies trade. In the present day, we’d prefer to share a number of highlights from that report—findings entrepreneurs and executives at consulting companies could discover helpful as they attempt to make sense of {the marketplace} and plan for the long run.
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 laborious to grasp why. International wars, a polarized political atmosphere, an upcoming election like no different and combined financial indicators are just some causes companies are viewing the long run with warning.
However beneath the gloom is a whole lot of hope. The trade has accelerated its development every of the previous three years. And the bigger economic system has continued to broaden, providing the likelihood 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 person doubts AI’s potential—and companies, in addition to their shoppers, are desirous to harness the expertise’s efficiencies and analytical energy.
On this 12 months’s examine, we deal with that subset of companies that grows 3X sooner and is 2X extra worthwhile than their slower rising counterparts. Earlier than we dive into the examine’s highlights, nevertheless, let’s study a bit concerning the examine and the Excessive Progress companies which have a lot to show us.
In regards to the Research
442 consulting companies companies participated on this 12 months’s Excessive Progress Research, representing $13.5 billion in mixed income and nearly 97,000 staff. This was the biggest trade pattern within the examine (see determine under).
Research members signify companies of all sizes. They conduct enterprise in six continents.
Within the examine, we grouped the taking part companies into three classes: Excessive Progress (see definition within the part under), No Progress (people who skilled zero or adverse development), and Common Progress (the steadiness of the pattern).
Meet the Excessive Progress Companies
We outline Excessive Progress companies as these companies that obtain not less than 20% compound annual development over a three-year analysis interval. We distinction these companies in opposition to people who skilled little or no development over the identical time-frame. This permits us to establish methods and practices which are related to sooner development and better income.
This 12 months’s Excessive Progress consulting companies grew at a median fee of 35%—greater than 3 times sooner than common.
Excessive Progress companies are additionally extra worthwhile than their slower-growing opponents. Excessive Progress companies loved a revenue of 26%—greater than twice the speed of the No Progress group.
Subsequent, we have a look at 5 key components that give these companies a aggressive benefit.
1: Excessive Progress Companies Don’t Spend Extra on Advertising and marketing
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 companies isn’t correlated with success, what’s? For one factor, these companies are extra environment friendly. For example, 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 priceless content material and show your experience. And it prices little greater than your time. Prime companies additionally put money into high-quality enterprise growth supplies. These would possibly embody pitch decks, {qualifications} packages and proposal templates. Electronic mail advertising and marketing stays one of the best ways to nurture the prospects in your record, and Excessive Progress companies usually use it to share extremely related content material and affords with their audiences.
Public talking is a time-tested method to construct visibility and credibility, whereas giving audiences a style of what it could be prefer to work with you. It’s additionally an effective way to place a private face in your model. And networking at dwell occasions gives priceless face-to-face interplay with potential shoppers. Whereas this was as soon as the first approach 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’ll be able to entry the total record for this and different charts on this put up. We additionally dive into which strategies present the best affect, as effectively which offer probably the most affect for fewest {dollars} and hours spent.
3: They Are Extra Prone 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 stated, greater than 6 in 10 Excessive Progress companies do no analysis. We see this as an enormous miss, particularly in unsure occasions when {the marketplace} is especially laborious to learn.
4: Excessive Progress Companies Outsource Extra Advertising and marketing Abilities
A technique the Excessive Progress contingent creates efficiencies of their advertising and marketing is by outsourcing all kinds of specialised abilities. They usually do it way more usually than No Progress companies.
What are the benefits of outsourcing abilities? First, you often will spend much less for them, as you solely pay for what you want. Second, specialists are true specialists within the talent you want, they usually use the newest instruments and strategies. Meaning they’ll do it higher than any generalist. Third, they’re extra prone to get outcomes. Relying on the exercise, they might even have the metrics to show it.
The highest 5 outsourced abilities are web site enhancements, graphic design and advertising and marketing supplies growth, search engine marketing and video manufacturing. Companies that attempt to do these items in-house usually find yourself with amateurish output and little to point out for his or her funding.
5: They Are Trying Ahead
We requested examine members what matters and traits they wished to find out about this 12 months. We ask this query as a result of it provides us perception into the place companies—and most apparently, Excessive Progress companies—are focusing their consideration. It’s a approach 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 change into a necessary a part of our instruments and workflows as time goes on. Technique got here in second. Companies that need 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 realize 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’ll depend on these instruments much more to seek out and consider skilled companies companies. Excessive Progress companies need to be the place their audiences will discover them, they usually need to maintain their consideration.
We talked about earlier that Excessive Progress companies have 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 anticipate this pattern 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 Method
Excessive Progress companies have realized the laborious approach 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 that you may, too. Utilizing the info on this 12 months’s Excessive Progress Research you’ll be able to emulate these excessive flyers.
Begin by trying on the knowledge and evaluating it to your personal advertising and marketing program. The place are the similarities, and the place are the variations? What are you able to implement and check shortly, and what would possibly take a much 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 exceptional outcomes once we apply the teachings we’ve realized from the trade’s greatest performers to consulting companies like yours. To study extra, you’ll be able to buy the total trade report. Or you’ll be able to attain out to Hinge for hands-on steerage and assist.
