This 12 months, we launched the ninth version of our Excessive Progress Examine, together with a particular breakout report centered on the consulting providers trade. As we speak, 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 need to look exhausting to grasp why. World wars, a polarized political atmosphere, an upcoming election like no different and combined financial alerts are only a few causes companies are viewing the longer term with warning.
However beneath the gloom is a number of hope. The trade has accelerated its development every of the previous three years. And the bigger economic system has continued to develop, providing the chance that consulting companies will proceed to prosper.
On the similar 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 purchasers, are desperate to harness the expertise’s efficiencies and analytical energy.
On this 12 months’s examine, we concentrate on 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 Examine
442 consulting providers companies participated on this 12 months’s Excessive Progress Examine, representing $13.5 billion in mixed income and virtually 97,000 staff. This was the most important trade pattern within the examine (see determine under).
Examine contributors signify companies of all sizes. They conduct enterprise in six continents.
Within the examine, we grouped the collaborating companies into three classes: Excessive Progress (see definition within the part under), No Progress (people who skilled zero or unfavourable development), and Common Progress (the stability of the pattern).
Meet the Excessive Progress Companies
We outline Excessive Progress companies as these companies that obtain no less than 20% compound annual development over a three-year analysis interval. We distinction these companies towards people who skilled little or no development over the identical timeframe. This permits us to establish methods and practices which might be related to sooner development and better earnings.
This 12 months’s Excessive Progress consulting companies grew at a median charge of 35%—greater than 3 times sooner 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 have a look at 5 key elements 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 as their No Progress friends—10% of revenues, not together with personnel compensation prices. But they obtain far superior efficiency. If the quantity you spend money on advertising 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 similar time, these companies know the place to spend their restricted advertising {dollars} most successfully.
2: Excessive Progress Companies Know What Works
Under are the 5 advertising strategies used most frequently by Excessive Progress companies. On the prime of the listing is networking on social media—primarily LinkedIn. LinkedIn is a superb place to attach with new prospects, meet potential strategic companions, share priceless content material and exhibit your experience. And it prices little greater than your time. High companies additionally spend money on high-quality enterprise improvement supplies. These would possibly embrace pitch decks, {qualifications} packages and proposal templates. E-mail advertising stays one of the best ways to nurture the prospects in your listing, and Excessive Progress companies usually use it to share extremely related content material and provides with their audiences.
Public talking is a time-tested option to construct visibility and credibility, whereas giving audiences a style of what it is perhaps wish to work with you. It’s additionally a good way to place a private face in your model. And networking at dwell occasions offers priceless face-to-face interplay with potential purchasers. Whereas this was as soon as the first means consultants developed new enterprise, dwell networking is now simply half of a bigger built-in advertising technique.
Within the full consulting trade report, you’ll be able to entry the complete listing for this and different charts on this put up. We additionally dive into which strategies present the best affect, as effectively which offer essentially the most affect for fewest {dollars} and hours spent.
3: They Are Extra More likely to Conduct Analysis
The Excessive Progress cohort was extra seemingly than the No Progress group to conduct formal analysis on their target market. Common analysis provides companies the power to grasp the altering habits, preferences and wishes of their patrons.
That mentioned, 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 exhausting to learn.
4: Excessive Progress Companies Outsource Extra Advertising and marketing Abilities
A technique the Excessive Progress contingent creates efficiencies of their advertising is by outsourcing all kinds of specialised abilities. And so they do it far more usually than No Progress companies.
What are the benefits of outsourcing abilities? First, you normally will spend much less for them, as you solely pay for what you want. Second, specialists are true specialists within the ability you want, and so they use the newest instruments and strategies. Meaning they may do it higher than any generalist. Third, they’re extra prone to get outcomes. Relying on the exercise, they could even have the metrics to show it.
The highest 5 outsourced abilities are web site enhancements, graphic design and advertising supplies improvement, SEO and video manufacturing. Companies that attempt to do this stuff 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 examine contributors what matters and developments 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 curiously, Excessive Progress companies—are focusing their consideration. It’s a means of understanding the place they’re steering their boats.
Not surprisingly, synthetic intelligence surged to the highest of the listing. AI, regardless of its well-publicized issues, is right here to remain, and it’ll more and more develop 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 vary, and the highest performers comprehend it.
Deepening on-line engagement was final 12 months’s listing 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 may depend on these instruments much more to search out and consider skilled providers companies. Excessive Progress companies need to be the place their audiences will discover them, and so they need 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 spend money on their digital transformation, and as AI turns into extra important to their aggressive benefit we anticipate this development to speed up. Lastly, Excessive Progress companies perceive they’re service suppliers, and most depend on repeat enterprise to maintain their development. In consequence, they’re searching for new methods to impress their purchasers and construct longer, extra satisfying relationships.
Market Your Agency the Excessive Progress Means
Excessive Progress companies have realized the exhausting means methods to construct a advertising 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 Examine you’ll be able to emulate these excessive flyers.
Begin by trying on the knowledge and evaluating it to your individual advertising program. The place are the similarities, and the place are the variations? What are you able to implement and take a look at shortly, and what would possibly 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 purchasers, and we’ve witnessed many outstanding outcomes once we apply the teachings we’ve realized from the trade’s finest performers to consulting companies like yours. To study extra, you’ll be able to buy the complete trade report. Or you’ll be able to attain out to Hinge for hands-on steerage and assist.
