Why Cross-Selling Doesn't Work

The Bane of Professional Service and Consulting Firms Remains the Inability to Connect Clients with Capabilities

               From large, global management consulting firms to PE led PR/Communications consultancies and public holding companies, the age-old mantra is to provide clients with additional services thus establishing stronger relationships and partnerships across multiple scope of work.

 In theory, the ask is pretty simple.

However, ask anyone in these firms and even those smaller, private companies, and the answer is much more sober.

It doesn’t work.

Breaking through is not even a client issue. It actually resides in the firm itself. Even incentives such as bonuses, promotions, development opportunities, and the like have not thawed this incredibly intriguing situation. What have we noticed about the reasons for such a mind-boggling circumstance?

               Over many decades, a similar pattern emerges:

            Fear – The account or client lead may feel that turning over the relationship even for a specific new assignment or capability is potentially a problem.

Lack of knowledge – The lead for the new capability or service offering may not understand the client business or industry to provide a customized solution.

Selling vs Solving – Most of the efforts in cross-selling are based on “selling” rather than “solving” turning off clients and client leads alike.

Push – Most cross-selling efforts emanate from the top of the firm causing unnatural churn and anxiety internally.

Knowledge – Internal education efforts on capabilities or services are typically short-changed in terms of adequate immersion and understanding. This lack of confidence results in a reluctance to introduce the client to new services.

So, how can firms reverse this annoying trend?

Simply put, introduce the capability before the client’s need arises. The nature of the discussion should focus on the trends, insights, observations, best practices, and considerations of the specific capability or expertise. From there, the client is in the driver’s seat determining if and when such a service is needed. It also puts pressure on the internal firm team for having to “sell” something quickly.

For the client lead and the capability lead, building and nurturing a better relationship over time so each becomes more confident in each other’s abilities is also key.

Cross-selling and Up-selling can be an incredible value to the client and to the consulting firm if it is based on solving the client’s business issues. Removing artificial barriers will accelerate results and outcomes.

Gary