How good was our crystal ball?
At the beginning of 2009, with uncertain economic conditions ahead, I surveyed a few of my colleagues here at RainToday / Wellesley Hills Group to get their professional services marketing predictions for the coming year. As 2009 comes to a close, I looked back at our fortunetelling skills to see what came true and where we were off the mark.
Prediction #1: Back to the basics. We’ll see a focus more on tactics that are measurable and can yield quick hit returns. This includes an increase in direct marketing tactics such as calling, email, and mail. And with this influx in an already crowded space, it is going to be tougher and tougher to get through using these methods.
The 2009 reality: We’ve certainly seen a shift to more direct and one-to-one outreach tactics such as direct mail, email, and calling, however what people are doing is hardly going “back to the basics.”
Professional services marketers are revamping one-to-one communication. It is no longer just about these direct outreach tactics. We’ve seen a huge uptick in firms and professionals focusing on inexpensive tactics such as social networking to make one-on-one connections with their prospects. (For more on how social media has changed professional services marketing see prediction #4)
Prediction #2: Value-based marketing will win. With the uptick in marketing communications and noise, those firms with value-based messaging will stand out even more than their competitors with a straight-up sales pitch. Those left standing will be the ones that are thoughtful, skilled, and value-based, not only in their service delivery but in their marketing.
The 2009 reality: To compete in the new economy it is not enough to hang a shingle and tell everyone how great you are at the services you provide. You must provide value in your communications, become known as a thought leader with your prospects, and demonstrate your expertise through actual experiences.
Value-based marketing has gone beyond a “nice to do” and has become a “must do” in the world of professional services marketing. Especially with the sales cycle lengthening, value-based marketing gives you an excuse to stay in touch. Before clients buy from you all they know is your marketing. If your marketing is valuable and thoughtful, you will be perceived as such. If your marketing is not, well, you won’t be either.
Prediction #3: Some companies will fail, others will succeed. Some people will continue to sell and work hard, and these are the people who will bring in new clients, make money, and prosper regardless of the economic conditions. Others will make excuses about the tough economy, give up and fail, and prove Henry Ford’s adage correct, “Whether you think you can or can’t, you’re right.”
The 2009 reality: As much as I’d like to declare that the hard times are over and all is going back to normal, we are still seeing professional services firms struggle to compete in the new economy and expect this trend to continue into 2010. On the flip side of this, we’ve also seen plenty of professional services firms not only survive, but continue to grow despite the economy. If you’re one of the firms making excuses and blaming the economy for lack of new business, I’ve got news for you: buyers are out there; it is just harder to find them. You need to do more just to get the same results you’ve gotten in the past.
In 2010 professional services firms leaders will need remember what it is like to lead. The 2009 recession resulted in cost cutting, scaling back, and hunkering down to get the work done. Now is the time to get our marketing and business development engines back up and running on all thrusters.
Prediction #4: The jury is still out on social media. There were mixed reviews around social media—some think it is going to infiltrate the professional services marketing space, while others say social media will be deemed “overrated for professional services firms.”
I think social media is here to stay but that we’ll see a shakedown in the number of sites that are out there and being used (for professional services marketing). My prediction: LinkedIn will be the one left standing as the king of the mountain.
The 2009 reality: We’ve certainly seen a shakedown in the number of social media sites being used for professional services marketing. Has LinkedIn become king of the mountain? Not exactly…In 2009 we saw explosive growth on Twitter and have heard many success stories about professional services firms using these tools to network and strengthen relationships with clients and prospects.
However, just because social media has worked for some professional services businesses, does not mean you should put it on your 2010 marketing to do list. Before committing , you need to evaluate social media as you would any other marketing tactic to determine if it is the right fit for you. Check out Professional Services Firms: Still Not Sold on the Business Case for Twitter? which includes a few questions you should ask yourself before getting started.
Prediction #5: Extremes will happen. We will see a clear line drawn between firms that view marketing as a:
- Cost: At firms where marketing is not respected, marketing spending will get chopped in the attempt to save cash.
- Revenue generator: At other places more dollars, energy, and focus will be put on marketing because marketing is viewed as a revenue driver.
The 2009 reality: I can’t say that this one came true. The firms I’ve observed by and large cut marketing spending and resources across the board. The firms that invested more dollars and energy on marketing were the exception, not the norm.
Prediction #6: Focus on short-term lead generation. While we all know the stats that most leads are long-term leads, there will be a strong focus on generating short-term leads and new conversations with prospects who are ready to buy now. Long-term brand building or lead nurturing activities will fall by the wayside for many firms, which could hurt them looking into 2010 and beyond.
The 2009 reality: Nothing could be more true. Our clients’ horizons have shortened. While we used to be able to talk about long-term ROI, clients care about what is going to help them survive in the next three, six, nine months, not the next two years. As a result, we’re seeing professional services firms focus on short-term strategies and results. For example:
- Introducing new “entry”-level services that get their foot in the door at lower fees.
- Revamping their messaging to focus on short-term ROI for their services.
- Focusing on low-cost marketing tactics to generate sales-ready leads now.
- Working the network, getting involved in social networking, and reaching out to past clients and prospects to drum up conversations.
This past year was a tough one, and we may have underestimated just how tough it was going to be in our predictions. Looking forward to 2010, it does not look like the economy is going to get a whole lot better anytime soon. The challenge services firms now face is learning to compete in this new environment.
How do you think we did with our predictions? Did any of these predictions come true at your firm?
