How to market professional services like consulting, degrees, hospitals, R&D firms?

You probably know that the marketing of Products and Services is different. In this article I am giving thoughts on how the marketing of professional service firms is different than that of other services. Please do write your comments at the end by clicking on the comment button.

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Generally the term “Professional Services” covers 5 types of firms

1. Law and Accounting firms characterized by high knowledge intensity, professionalized workforce, and low capital intensity
2. Hospitals and Universities (Campuses of experts and teaching ) characterized by high knowledge intensity,  professional workforce and high capital intensity
3. IT service firms (Campuses of getting process done) characterized by high knowledge intensity,  professional workforce and high capital intensity
4. Consulting Firms characterized by high knowledge intensity and a low capital intensity
5. R&D and Biotech firms characterized by a high knowledge intensity and a high capital intensity.

Do not be embarrassed to do marketing!  

1. They would secretly like to market in order to expand their revenues and yet, for the sake of maintaining their “professional stature”, they would not like to be seen marketing!  
2. As a result most firms ignore marketing in the belief that "our work speaks for itself" or "Marketing does not go with the dignity of the profession". Of course there are few professional service firms that hire ‘marketing people’ but leave them to their own devices and essentially expect them to be busy with developing websites and brochures and designs.
3. And yet, the very same people secretly admit they are worried what is happening behind their back. They know there are competitors out there who are soliciting their clients and undercutting their fees. They know that there are competitors out there doing well even in depressed markets because they “market”. There are competitors who have the right relationships with their clients and have good referral sources.

Do not market as if it is a product

1. They often use a “Product Marketing” model and express their expectations from marketing as “getting the name out”, “put the information into the hands of the buyers”, “build company reputation” etc.  When people buy products, they do so because of what they can see, see, hear, feel, taste and smell in the item. The item!
2. But in professional services, there nothing to see or taste or feel. It is not an item! Howsoever well known your firm may be,  you will get hired (or not hired) only  after they meet you – in person ! The fact is that people buy other people, not firms.
3. Professional marketing is about the trust that the clients have in the people, their expertise and their network.

Do not forget your existing clients

1. Sometimes the professional service firms consider their existing clients as “annuities” on which they can live without measuring their satisfaction, communicating with them, seeing if they can mine them for more business and to exploit their reference potential. Ideal mix of business should be :   
• 50% “existing clients” and their referrals
• 25% “referral sources" like alumni, people in the field
• 25% from "strangers"  seminars, articles, speaking, ads, direct mail
2. Unfortunately, most firms don't even know what other services their customers buy and from whom. You must be wary of others who may be providing a different service to your existing client because there is a scope for infection. The relationship is now at risk because they themselves– or can bring their buddies into your client relationship - can compete with you. It secures their position and pays back referrals received.
3. It's also important to continue to market to your clients to let them know how valuable they are and why using you is such a good idea.

 Do not ignore your own employees

1. Successful professional service firms know that their marketing -  no matter how great – will be useless if the employees back at the firm who will need to deliver it – are not on board. They must involve everyone at the firm in marketing of the firm's services.
2. They must know that everyone is conveying a message all of the time to the outside world? How is your phone answered? What do your finished reports look like? What does your office look like? How do your people dress and talk? How do they come across to your clients?
3. If your firm and your people aren't in alignment with the kind of client you're trying to attract, marketing can't work. Everyone in the firm needs their own "personal marketing plan" . Even the receptionist. Everyone needs to know what's expected of him or her as his or her part of the marketing effort.

Do not aim for too many different customer types

1. Most professional service firms want everything! They say; “You want it? We got it!”. But in reality, if you cannot be good at everything for everyone. You need to be good at “vital few” things  which people really want. That is where you must invest and focus on. And for this you must know your market very well. 

Do not forget : Marketing is a process, not an event

1. Marketing  process is slow to start. Do not let there be a gap. It needs to be done not only when you need new business but when you are doing your existing business. If you do it sporadically, you will need to restart the process all over again - almost start from scratch – and that reduces the morale.
2. That is why successful professional service firms set aside a percentage of gross revenues for marketing.  
3. Most professional service firms (and individuals too) don't take the skills of personal marketing and selling seriously enough nor are willing to spend enough on making them bring in more business.
4. There is time in everyone's day to go to market: it's called lunch (or breakfast, or dinner). Most people eat lunch, even when busy. However, we usually eat lunch by ourselves or at our desks or with our friends at the firm. We suggest not less than two lunches or breakfasts or after-work meetings a week with clients, referral sources, prospective clients, etc. even during busy season.

Do not rely only on the marketing people

1. Many professional service firms  allocate someone to the marketing function (sometimes a clerical person with no real knowledge or background in marketing) and expect him or her to be the ones to bring in business. This does not normally work.
2. Everyone must be involved in the marketing effort! The partners can't pass it on to the staff and to the marketing person.  All that a marketing can do is to provide the bigger and more frequent opportunity. Somebody still has to show up and get the work done. The biggest complaint of the marketing people in professional service firms is "I can't get our people to do anything."

Do Not Forget to use leads generated by marketing

1. Good leads are hard to come by for most of us. So you must jump on referrals and hot leads immediately before they cool off. The longer one waits, the colder that lead gets and the harder to convert into business.