Where Are 2021 Opportunities for High-Growth Professional Service Firms?

As national economic indicators signal recovery trends in 2021, what actions and focus characterize high growth opportunities for accounting, law, architecture, technology, and other professional firms?

In 2020, new business leads, a critical source for new growth, swelled by 18% from investments and focus on digital marketing resources, including email, social media, digital advertising, and website investments. The Virginia-based Hinge Research Institute (HRI) found that professional service companies who increased their marketing investments – particularly in the digital realm – found considerable growth opportunities, achieving “dramatic acceleration.” The 2020 recession became a major opportunity for transformation.

What do professional firms face in 2021?

The power of digital continues to grow. HRI reports that by utilizing the web and other digital resources, a full 90% of buyers will drop a prospective service provider from consideration even before they actually talk to them. Further, client loyalty to professional service firms, including long-time lawyers, accountants, and the like, has dropped 20% since 2016.

Who is using digital marketing effectively? Perhaps surprisingly, government contracting service firms weigh in at the top spot for high-growth firms in this category, following (perhaps not so surprisingly) technology and software firms.

Legal is in the middle, and accounting/financial services firms bring up the rear.

Focus remains critical 

According to HIR’s High Growth study, what do high-growth professional service firms focus on?

High-growth firms, those who grow revenues more than 20% annually and register strong profit margins, focus on increased competition from new firms and competitors (43%), the need for new skills (40%) and how to automate marketing and engage artificial intelligence/machine learning in their service offerings (32%)

What do low growth/no growth firms focus on?

Unpredictability in the marketplace (51%), changes in how customers buy services (39%), downward price pressure (38%), decrease in service demand (20%) and unreasonable client demands (24%).

High-growth firms are interested in how remote work will increase their capacity and profitability (37%), how to put data to work through big data and analytics (37%), how AI/machine learning will boost their service offerings (34%), how workflow and process automation will drive higher productivity (33%), and how the Internet of Things (IoT) will increase their market share.

HRI found that firms that spend 20% of their gross revenue on marketing are more likely to become (or accelerate) a high-growth profitable firm.

Marketing that works

What specific marketing techniques serve high-growth professional firms well? Networking on social media has a high payoff (52%); targeted email campaigns (with useful content, not just sales or offers) still has a high impact for 49% of high-growth firms; regularly publishing blog posts is deployed by 39% of high-growth companies; networking at targeted conferences, trade shows and events also ranks high in 39% of high-growth companies (speaking at these same conferences is valued by 34% of companies); and promoting thought leadership on social media scores high ROI for 36%.

Different aspects of public relations rank high across the board for high-growth companies (even higher than SEO projects)

Want to grow your professional service firm firm in 2021 and capture new market share (while defending your current share)? Contact MEK for high-impact thoughts.

By Michael Snyder, managing principal at MEK, a high-impact firm that has been creating opportunities through traditional and digital media, driving growth and providing strategic marketing/PR for 20 years.