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The Importance of Research In Business Growth

Let’s face it. Most professional services firms place little value on research. They firmly believe, “I know my clients well.” So what’s the point?

What you don’t know could be costing you some real money. Let me share an example.

Just the other day we presented the results of client and prospect research to one of our clients. The firm’s leadership thought that they knew their market well. One of their strongest beliefs was that their clients were very price sensitive. The problem is, it wasn’t true.

In fact, their clients were much more concerned about how well the firm understood their industry. Price was a minor issue. It turned out that the firm’s entire business development efforts were aimed at addressing a concern that prospective clients did not have.

The real importance of research in business growth

The bottom line is that professional services firms that do systematic, structured research on their target audiences grow faster and are more profitable. In short, research will help you grow your firm.

Not sure you agree? Our research on 500 professional services firms is pretty persuasive:

Research vs. Growth & Profitability Chart

Professional services firms that do occasional research, grow faster and are more profitable than those who do not do any systematic research. Those firms that do frequent research (at least once per quarter) grow even faster and are even more profitable. I’m not sure how one could find a clearer case for the importance of research in business growth and profitability.

Clearly, research is important to business growth and profitability. Yet it is infrequently used by professional services firms. For this reason, Hinge has released a brand new handbook on the topic called the Professional Services Guide to Research.

We wrote it not only to help you understand why you might want to do research, but also how you might go about doing it.

Here’s a summary of what’s covered:

  • How research impacts growth and profitability
  • Why you don’t know as much as you think about your clients
  • 10 game-changing insights you’ll learn from your research
  • Why conducting your own client research is often a bad idea
  • What kind of research is best for your firm
  • What is the best way to gather the data
  • What ROI you can expect from your research

Get the inside scoop on your market and make the right choices for your firm. Like all of our guides, it’s free: Professional Services Guide to Research. Download it now.

 

Author: Lee Frederiksen, Ph.D. Who wears the boots in our office? That would be Lee, our managing partner, who suits up in a pair of cowboy boots every day and drives strategy and research for our clients. With a Ph.D. in behavioral psychology, Lee is a former researcher and tenured professor at Virginia Tech, where he became a national authority on organizational behavior management and marketing. He left academia to start up and run three high-growth companies, including an $80 million runaway success story.

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