Why Your Management Consulting Firm Should Consider a Competitor Analysis
When was the last time your management consulting firm conducted a competitor analysis?
Here at Hinge, we frequently perform competitor analyses both for ourselves and for our clients, and not only because new competitors crop up. As in any market, competitors modify their positioning, products and services to adapt to market needs.
Why is this important, you ask? After all, you can’t change what you do every time a competitor comes out with something new. Isn’t it better to let the competitors worry about you?
It’s important to conduct competitor analyses to stay on top of what your competition is doing and find new ways for your firm to generate sales. The problem with having a static brand is that customers will go elsewhere. Think Kodak and digital cameras, or any retailer versus Amazon. The same is true for management consulting: if a competitor puts marketing muscle behind a new twist on an old methodology or a core group of executives who become visible experts in your industry, then that firm is the one that attracts attention.
Even if you know as an industry insider that your methodology is better and your team is equally capable, some prospects are hearing about the competitor’s attributes and knowledge base for the first time, and that information establishes the baseline for selecting a firm. According to our latest research, team expertise/skills is the top reason that buyers choose a management consulting firm. Now, you’re on defense and need to beef up your strategy.
Another reason for conducting a periodic competitor analysis is somewhat surprising: most firms don’t know who their competition is. According to our research, 75% of the competitors identified by buyers of management consulting services were not even considered competition by the firms selling the services.
There are many more competitors out there than firms realize, and it is likely they are winning business. At a minimum, they have a presence in the minds of your prospects and clients, and that is at the expense of mindshare about you and your firm. Changing that dynamic is a matter of getting in front of clients and prospects regularly so you can develop those relationships. The research points to activities like networking, personal visits, a referral program and developing a reputation for results as ways to deepen relationships.
On the last point about developing a reputation, it’s worth noting that reputation is only half the battle. You need visibility for audiences to know about you and your expertise. Even your clients may not know the extent of what you offer. Also, your world must be bigger than your clients. Executives and staff leave for other firms, for instance, so you need to establish new relationships with current clients.
To be certain, competitors struggle with the same issues you do: prospecting, closing deals, service delivery, reputation building and more. Conducting a competitor analysis can show their points of weakness, which can create opportunities for you to highlight your reputation in those areas. Then your firm will stand out in the sea of competitors in the management consulting industry.
- Business Development Strategy: A High-Growth Approach
- A 10 Step Brand Development Strategy for Your Professional Services Firm
- Strategic Marketing for Professional Services
- Digital Branding for Professional Services
- 10 Essential B2B Marketing Strategies to Grow Your Professional Services Firm
- Digital Marketing Strategy for Professional Services
- Rebranding Strategies: A Step-By-Step Approach for Professional Services
- Elements of a Successful Brand 1: Brand Positioning
- The Top 5 Business Challenges for Accounting & Financial Services Firms
- Find Your Differentiator: 21 Ways to Gain a Competitive Advantage for Your Firm
- Elements of a Successful Brand 4: Brand Promise
- What Is the Cost of Video Production for the Web?