Current
Trends In
PROFESSIONAL SERVICES MARKETING
Benchmarking Survey 1996 - 2001
December 2001
View
the Survey
Introduction
In 1995, Professional
Services Marketing conducted its first wave of research with
Twin Cities-based professional services firms. Our research
goal was to determine how these firms were marketing their
services and how they were staffing and funding their marketing
functions. The feedback we received provided a rich source
of trend and benchmarking information for the survey we completed
in 2001.
In October 2001 we repeated the survey to compare and contrast
how services firms are marketing today, and to explore the
changes that have taken place in professional services marketing
over the past five years.
We identified a number of interesting trends, including the
continued trend to outsource various marketing activities,
and the fact that in spite of a tighter economy, the vast
majority of participants plan to maintain or increase their
focus on marketing in 2002. A summary and analysis of the
survey results follows.
The Research
Question
Is there a trend among professional services organizations
to outsource all or part of the internal marketing function,
and how has that changed over the past five years since this
survey was originally conducted?
The Results:
An Overview
We learned that there is still a very strong interest in outsourcing
all or part of a firm’s marketing function. When we
first conducted this survey in 1996, 56% of respondents indicated
that, if proven cost effective, they would be interested in
outsourcing all of part of their marketing function. Five
years later, 59% of respondents answered yes to the same question.
Those who responded to the survey were primarily president/CEO
level professionals (43%). Other who responded included marketing
executives (24%), practicing professionals (19%) and firm
administrators (14%). Responses were received from firms in
the following industries: legal, business consulting, accounting,
financial, HR consulting, insurance, and architectural.
In addition, it is interesting to note that an in additional
question added to the 2001 survey, asking how the tighter
economy will affect firms’ marketing initiatives in
2002, 95% of respondents indicated that they will either maintain
the same level of marketing or increase their emphasis on
marketing, while only 5% indicated that they plan to reduce
spending on marketing initiatives. Finally, it is also interesting
to note that 87% of respondents indicate that they have a
Website – evidence of the importance many firms place
on online marketing.
Professionals
in the following industries completed the survey:
| 48% |
Legal |
| 17% |
Business Consulting |
| 13% |
Accounting |
| 13% |
Other: Financial, HR Consulting, Insurance |
| 9% |
Architectural |
The following reflects the position level of the respondents:
| 43% |
Managing Partner or President/CEO |
| 24% |
Marketing Vice President or Director |
| 19% |
Practicing Professional (lawyer, architect, accountant, engineer, etc.) |
| 14% |
Firm Administrator |
Size of respondents'
firms:
| 42% |
1 -10 |
| 38% |
11-50 |
| 4% |
51-100 |
| 8% |
101-150 |
| 4% |
151-200 |
| 4% |
200+ |
Those services
outsourced in 2001 by 20% or more of respondents include:
| |
2001 |
1996 |
| Advertising (Print, Radio, TV, Cable, Web)
|
35% |
32% |
| Public and Media Relations |
41% |
38% |
| Firm Identity Materials |
37% |
31% |
| Marketing Coaching for Individual Professionals |
29% |
14% |
| Firm Brochures and Capabilities Pieces |
29% |
37% |
| Seminar and Event Invitations |
24% |
21% |
| Internet Website Planning, Development
and Marketing |
22% |
16% |
Services which
may be pursued in 2002 include:
| Client satisfaction program development |
40% |
|
| Marketing training for professionals |
35% |
|
| Marketing training for staff |
38% |
|
| Competitive Market Research |
20% |
|
| Website planning, development and Marketing |
17% |
|
| RFP Responses and Proposal Development |
16% |
|
| Cross-Marketing Program Development |
15% |
|
| Seminar and Special Event Planning |
14% |
|
| Referral Program Development |
13% |
|
| Marketing Database development |
13% |
|
PROJECT SIGNIFICANCE
High
level of interest
This project is significant because it demonstrates that the
interest level in outsourcing all or part of the marketing
function has not wavered in four years; in fact, it has increased.
In 1996, 56% of respondents answered ‘yes’ to
the research question, and in 2001, 59% of respondents answered
‘yes.’ The services for which firms have used
outsourced marketing professionals in the last year are similar
in the 1996 and 2001 surveys as well, with the top areas being
public and media relations, advertising, and firm brochures
and capabilities pieces.
Criteria upon
which marketing consultants are hired
Another significant result of the survey is the analysis of
the criteria upon which professional services firms evaluate
outside marketing services providers. The 1996 survey validated
the author’s hypothesis that experience and professional
services marketing expertise would be the overriding factors
when selecting outside marketing counsel. While it is still
very high on the list (second), creativity has risen two levels
to number one. It is the author’s hypothesis that the
competition among professional services firms gets stronger
each year, and firms are looking for outside marketing professionals
who can definitively set their firm apart from the crowd.
In order to achieve this, creativity, in addition to experience
and expertise in professional services marketing, is paramount.
In order of
importance, respondents selected the following criteria most
important. Percentages reflect
“Extremely important” responses:
- Creativity (96%)
- Demonstrated expertise in professional services marketing
(95%)
- Specific knowledge of client's industry (92%)
- Ability to work as a team with in-house marketing staff
(91%)
- Excellent written and verbal communications skills (91%)
- Fast turn-around time (65%)
- Location - Twin Cities Based (50%)
- Understanding and use of technology (46%)
- Low cost (41%)
- Impressive portfolio and client references (36%)
- One-stop shop; the ability to handle many different projects
(27%)
Survey respondents
rated the importance of a comprehensive list of consultant
characteristics on a scale of 1-10, identifying them as extremely
important, somewhat important, important, and not important.
Responses are below:
| Demonstrated expertise in professional
services marketing |
| 95% |
Extremely Important |
| 5% |
Somewhat Important |
| |
| Fast Turn-around time on work |
| 65% |
Extremely Important |
| 27% |
Somewhat Important |
| 8% |
Important |
| |
| Ability to handle many different projects - the "one-stop-shop"
|
| 27% |
Extremely Important |
| 59% |
Somewhat Important |
| 5% |
Important |
| 9% |
Not Important |
| |
| Specific knowledge of your industry |
| 92% |
Extremely Important |
| 8% |
Somewhat Important |
| |
| Ability to work as a team with your
current in-house marketing staff |
| 91% |
Extremely Important |
| 9% |
Not Important |
| |
| Understanding and use of technology |
| 46% |
Extremely Important |
| 45% |
Somewhat Important |
| 9% |
Important |
| |
| Low cost |
| 41% |
Extremely Important |
| 45% |
Somewhat Important |
| 13% |
Important |
| |
| Location: Twin Cities-based |
| 50% |
Extremely Important |
| 32% |
Somewhat Important |
| 9% |
Important |
| 9% |
Not Important |
| |
| Creativity |
| 96% |
Extremely Important |
| 4% |
Somewhat Important |
| |
| Impressive portfolio and client references |
| 36% |
Extremely Important |
| 64% |
Somewhat Important |
| |
| Excellence in written and verbal communications |
| 91% |
Extremely Important |
| 9% |
Somewhat Important |
Similar to the 1996 survey, 84% of respondents are in firms
with under 100 billing professionals. Approximately 12% of
respondents are in firms with 101-200 professionals, and only
4% are in firms with over 200 professionals.
The following
demonstrates the amount of gross revenue participating firms
allocate toward marketing:
| 41% |
0-2% of gross revenue |
| 41% |
3-4% of gross revenue |
| 18% |
5-6% of gross revenue |
The following
reflects how firms have adjusted their marketing budget over
the past year:
| 82% |
Increased |
| 18% |
Decreased |
Many participating
firms indicate that they do have a website.
The following
reflects the existence of internal marketing departments in
respondent firms:
| |
2001 |
1996 |
| No |
57% |
38% |
| Yes |
42% |
62% |
Unlike the 1996 survey in which only 38% of respondents indicated
that they did not have an internal marketing staff, the 2001
survey indicates that the majority of respondents do not staff
an internal marketing staff (57%). It was surprising to the
author that such a significant percentage of respondents have
no in-house marketing staff. With the large number of marketing
initiatives being handled in-house, it is unclear to what
other internal departments the marketing tasks currently fall.
Those firms
with internal marketing departments report the following in
terms of the number of staff:
| |
2001 |
1996 |
| 1 person |
50% |
30% |
| Over 5 people |
30% |
23% |
| 2-4 people |
20% |
47% |
On the following chart, respondents identified the marketing
services currently performed in-house, services contracted
for during the past year, and services they may choose to
pursue in the future.
| MARKETING SERVICE |
Handled
In-House
% |
Contracted
for Service
During
% |
May Choose to Pursue in 2002 and Beyond
% |
| |
2001 |
1996 |
2001 |
1996 |
2001 |
| Strategic Marketing Planning |
|
|
|
|
|
| Firm-Wide Strategic Marketing Planning and Positioning |
74 |
79 |
17 |
17 |
9 |
| Practice or Industry Group Marketing |
71 |
71 |
19 |
11 |
10 |
| Regional Office Marketing |
80 |
47 |
10 |
4 |
10 |
| Marketing Coaching for Individual Professionals |
41 |
79 |
29 |
11 |
29 |
| Cross-Marketing Program Development |
85 |
55 |
– |
5 |
15 |
| Referral Program Development |
88 |
58 |
– |
5 |
13 |
| Trade and Professional Association Marketing Program Development |
76 |
67 |
12 |
5 |
12 |
| Client Satisfaction Program Development |
47 |
54 |
13 |
11 |
40 |
| |
|
|
|
|
|
| Name Recognition And Awareness |
|
|
|
|
|
| Advertising (Print, Radio, TV, Cable, Web) |
55 |
56 |
35 |
32 |
10 |
| Public and Media Relations |
47 |
55 |
41 |
38 |
12 |
| Underwriting/Sponsorships |
75 |
NA |
17 |
NA |
8 |
| |
|
|
|
|
|
| Strategic Communications |
|
|
|
|
|
| Client Communications |
81 |
85 |
9 |
18 |
9 |
| Employee Communications |
93 |
83 |
7 |
5 |
0 |
| RFP Responses and Proposal Development |
74 |
80 |
11 |
NA |
16 |
| Seminar and Special Event Planning |
77 |
76 |
9 |
13 |
14 |
| |
|
|
|
|
|
| Marketing Technologies |
|
|
|
|
|
| Internet Website Planning, Development and Marketing |
61 |
57 |
22 |
16 |
17 |
| Marketing Database Development |
70 |
80 |
17 |
7 |
13 |
| |
|
|
|
|
|
| Marketing Materials Development |
|
|
|
|
|
| Firm Identity Materials (letterhead, business cards, etc.) |
62 |
NA |
31 |
NA |
8 |
| Newsletters |
88 |
71 |
– |
16 |
12 |
| Firm Brochures and Capabilities Pieces |
62 |
72 |
29 |
37 |
9 |
| Seminar and Event Invitations |
67 |
70 |
24 |
21 |
9 |
| |
|
|
|
|
|
| Marketing Information |
|
|
|
|
|
| Competitive Market Research |
73 |
47 |
6 |
16 |
20 |
| Industry Research |
73 |
NA |
13 |
NA |
13 |
| |
|
|
|
|
|
| Marketing And Client Service Training |
|
|
|
|
|
| For Professionals |
47 |
46 |
18 |
36 |
35 |
| Staff Level |
62 |
43 |
– |
24 |
38 |
If proven cost-effective, the following percentages of respondents would consider outsourcing all or part of their firms' marketing function to an outside marketing services provider?
| |
2001 |
1996 |
| Yes |
59% |
56% |
| No |
41% |
44% |
This question directly addresses the research question: Is there a trend among professional services organizations to outsource all or part of the internal marketing function? The answer is yes. In fact, the number of those who are interested in outsourcing marketing services is slowly, but surely, on the rise.
Why or why not?
| 33% |
Have unique business or business model that does not lend itself to outsourcing their marketing function |
| 25% |
Would be willing to outsource if it could be proven to be cost effective |
| 17% |
Say their in-house marketing function is well-received and adequate |
| 17% |
Say it is not cost effective |
| 8% |
Indicate the outside perspective outsourcing could provide would be valuable |
It is interesting that the area in which there was a great increase between 1996 and 2001 in the number of firms who have outsourced services in the last year, is that of strategic planning. This is very pleasing to the author, who is a strong advocate of developing a long-term strategic plan prior to launching individual initiatives that may or may not support the overall goals and objectives of the firm.
Those who have outsourced all or part of their marketing function report the following levels of satisfaction:
| 31% |
Very satisfied |
| 23% |
Extremely satisfied |
| 23% |
Satisfied |
| 15% |
Somewhat satisfied |
| 7% |
Not at all satisfied |
Respondents identified the following as the strongest contributing factors to their levels of satisfaction:
| 45% |
Quality of work |
| 15% |
Cost |
| 15% |
Communication skills of professionals |
| 15% |
Services offered by professionals |
| 10% |
Other |
|
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