Professional Documents
Culture Documents
R ES E A RC H S U M M A RY
TABLE OF CONTENTS
03 / At a Glance
04 / Introduction
06 / Selecting a Firm
15 / Willingness to Refer
© 2009 Hinge
PROFESSIONAL SERVICES: HOW BUYERS BUY | 3
AT A GLANCE
• Interviewed 137 buyers of professional services
• Topics included:
© 2009 Hinge
PROFESSIONAL SERVICES: HOW BUYERS BUY | 4
INTRODUCTION
© 2009 Hinge
PROFESSIONAL SERVICES: HOW BUYERS BUY | 5
M et hodology
Private
46.7% Government
53.3%
Segments Percentage
© 2009 Hinge
PROFESSIONAL SERVICES: HOW BUYERS BUY | 6
SELECTING A FIRM
Approach Percentage
Email 14.0%
Networking 14.0%
Conferences 7.3%
© 2009 Hinge
PROFESSIONAL SERVICES: HOW BUYERS BUY | 7
© 2009 Hinge
PROFESSIONAL SERVICES: HOW BUYERS BUY | 8
selection criteria
Criteria Percentage
Reputation 11.1%
Price 4.2%
© 2009 Hinge
PROFESSIONAL SERVICES: HOW BUYERS BUY | 9
Concern Percentage
© 2009 Hinge
PROFESSIONAL SERVICES: HOW BUYERS BUY | 10
© 2009 Hinge
PROFESSIONAL SERVICES: HOW BUYERS BUY | 11
© 2009 Hinge
PROFESSIONAL SERVICES: HOW BUYERS BUY | 12
EXPANDING THE
RELATIONSHIP
AWAR ENESS OF SERV IC ES OFFER ED
Yes
36.3%
No
63.7%
D ES I R ED S ERV I C ES F RO M EX I ST I NG F I R M
None
32.0%
One or more
new services
68.0%
© 2009 Hinge
PROFESSIONAL SERVICES: HOW BUYERS BUY | 13
D ES I R ED S ERV I C ES A LEA DY O F F ER ED
Not offered
14.6%
Already offered
85.4%
© 2009 Hinge
PROFESSIONAL SERVICES: HOW BUYERS BUY | 14
O F F ER I NG NEW S ERV I C ES
Insight
Approach Percentage
Who’s job is it to figure
Senior person makes personal visit and
out how your services can discusses business situation and makes 45.4%
help your clients? Well, if recommendations
you believe it’s your client’s Senior person makes personal call and
responsibility to ask for the discusses business situation and makes 15.9%
services they need, you miss recommendations
a lot of opportunities. They Senior person sends personal email and
don’t even know what you discusses business situation and makes 13.6%
do! How about your project recommendations
manager? Project managers Follow our structured process 4.5%
know the client, but they are
All other marketing
focused on delivering results; e.g., Direct mail, newsletters, website, 20.4%
when operational priorities trade show
conflict with business
development, operations
always win. With very minor variations this sentiment was widely
shared: some buyers preferred to have this dialogue by
KEY TA KE AWAY phone (15.9%) or email (13.6%) but the basic precept of
You can’t leave it to the the conversation was consistent across the vast majority
project manager. Be sure to of responses.
assign a senior person who
can focus on the client’s Among government buyers, however, the response was a
organization and identify bit different. A small percentage (4.5%) of buyers wanted
opportunities to help your their providers to follow a structured acquisition process
client achieve their objectives. rather than engage in a discussion of needs. Anecdotally,
this pattern tended to be found in buyers who were at a
relatively low level in their respective organizations.
© 2009 Hinge
PROFESSIONAL SERVICES: HOW BUYERS BUY | 15
WILLINGNESS
TO REFER
Almost everyone recognizes the value of referral business.
It can add tremendous credibility and markedly shorten
the business development cycle. So how willing are clients
to make referrals? As it turns out, most are quite willing.
M a king a referral
9 – 10 66.9% 79.6%
80
Private
Buyers
80.8%
60
Government
Buyers
40 55.1%
20
© 2009 Hinge 1 The Ultimate Question, Fred Reichheld, Harvard Business School Press, 2006.
PROFESSIONAL SERVICES: HOW BUYERS BUY | 16
KEY TA KE AWAY In almost 60% of the cases the referral is made in response
As a rule of thumb, you should to a request, either a formal internal request (12.3%) or an
target two referrals a year informal request from a colleague (45.6%). In short, someone
from each active source. asked for a recommendation. The remaining 42% of referrals
are more proactive, with the buyer either bringing it up or
offering it in a conversation or industry event.
© 2009 Hinge
PROFESSIONAL SERVICES: HOW BUYERS BUY | 17
50
Private
Buyers
40
50%
30
Government
Buyers
20 32%
10
W hy not refer?
Reason Percentage
© 2009 Hinge
PROFESSIONAL SERVICES: HOW BUYERS BUY | 18
REASONS
CLIENTS LEAVE
LOYALT Y
Rating Percentage
9 – 10 61.3%
7–8 25.2%
6 or less 13.4%
© 2009 Hinge
PROFESSIONAL SERVICES: HOW BUYERS BUY | 19
Reason Percentage
They delivered on
67.4%
their promise
KEY TA KE AWAY The reasons for leaving fall into two distinct categories.
It’s your job to uncover new About 40% have a strong intention to leave because they
ways in which you can help feel that the firm did not deliver on its promise. The other
them solve the challenges 60% are satisfied with the performance of the firm but
they face. If you don’t, you will see the underlying need coming to an end or the end of
lose a valuable opportunity. the contract term approaching and are uncertain that the
current firm will win a recompete. These are principally
Government buyers.
© 2009 Hinge
PROFESSIONAL SERVICES: HOW BUYERS BUY | 20
SPECIAL SECTION
RETHINKING CLIENT
SEGMENTATION
It’s easy to get caught up in the day-to-day challenge of
providing high quality services to clients. In that quest,
your larger strategy can easily get lost. Here’s a new way
to think about client segmentation and keep a broader
strategy in perspective. Think about clients as falling into
four segments.
© 2009 Hinge
PROFESSIONAL SERVICES: HOW BUYERS BUY | 21
© 2009 Hinge
PROFESSIONAL SERVICES: HOW BUYERS BUY | 22
ABOUT HINGE
www.pivotalbrands.com
info@pivotalbrands.com
703-391-8870
© 2009 Hinge