How do you make sense of it all?

To help you understand and navigate the new landscape, the Hinge Research Institute has released its 4^th edition of Inside the Buyer’s Brain: AEC Industry.

About the Research

Inside the Buyer’s Brain, was first published in 2013, in 2018, and again in 2020, providing the first comprehensive look at the differing perspectives of buyers and sellers of professional services.

Our just-released 4th edition details the perspectives of almost 300 buyers and more than 1,400 sellers of AEC services. In this article, I’ll highlight some of the most pertinent findings from this year’s study.

Finding 1: Recruiting and retention and dealing with a difficult economy are top challenges facing the AEC industry

The war for top talent rages on. “Finding/keeping good people” was identified as the top business challenge in 2022, followed by “budget pressures and financial issues.” Buyers of AEC services are struggling to find and hire the talent they need. Keeping that in mind, AEC firms should consider providing the skills their prospects need—to fill any gaps where their services line up with their clients’ needs.

And as economic uncertainty continues, it’s no surprise that “dealing with a difficult economy” has risen dramatically—by 82%—in the last two years.

In fact, AEC buyers and their service providers identified many of the same top challenges, likely because they are dealing with the same ones. However, buyers’ fifth greatest challenge—“strategy/planning issues”—was barely on sellers’ radars, a signal that today’s buyers could be looking for more high-value, strategic services to address recruiting, budget and supply chain issues.

Finding 2: AEC buyers are much more likely to listen to an expert speak on a topic or attend a webinar.

This year, the AEC industry saw an important shift in the way buyers search for information on business-related topics. While “asking your peers for a recommendation” or “doing a web search” will always be primary search methods, AEC buyers are now much more likely to “listen to an expert speak on a topic” compared to two years ago, when the method ranked in last place. Buyers are also more likely to attend a webinar.

To address these new behaviors, AEC firms should consider reallocating some resources to developing their thought leadership. This could include public speaking, writing educational blog posts, conducting webinars and improving their search engine optimization.

This year’s study also saw a sharp decline in the use of social media to search for a business-related topic. But take that insight with a grain of salt. At the same time, AEC buyers are using LinkedIn for business more than ever.

Finding 3: Relevancy ratings are at an all-time high.

The extent to which AEC firms are addressing their buyers’ top challenges has been steadily increasing since 2018. If you’ve been following this data over the years, you might recall that historically the AEC industry has lagged other professional services industries in this critical area. The steady increase indicates that AEC firms may be doing a better job of understanding their buyers’ needs.

And while relevancy is going to fluctuate depending on buyers’ needs and market conditions, now is a great time to step back and assess the challenges your buyers are facing and determine which ones your firm can address.

Finding 4: AEC buyers’ willingness to recommend their service providers has reached an all-time high, too.

Buyers appear to be more comfortable than ever sharing their client satisfaction with their peers. Not convinced? This year, “client service” joined the top 5 scale tippers for buyers when selecting a services provider. As a result, you may want to put more of your business development resources into expanding existing relationships.

Sellers clearly have the opportunity to provide a better client experience, which can lead to more work, more referrals, and better reputation ratings. If you keep abreast of your buyers’ changing challenges and expectations—and make the appropriate adjustments—you can position your firm to deliver long-term value.

Conclusion

It’s clear AEC buyer behavior has changed, with relevance and willingness to recommend at all-time highs. One way to better understand the nuances of your marketplace is to research your target audiences.

To dive deeper into this data and get more practical advice on applying it to your business, purchase Inside the Buyer’s Brain, 4th Edition: AEC .

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Inside the Buyer’s Brain, Architecture, Engineering, and Construction Edition

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The post New AEC Industry Research Released: How Buyer Expectations Have Changed in the AEC Industry appeared first on Hinge Marketing.

To address this uncertainty, government contractors must understand how and why their public buyers are behaving differently than in the past.

In our most recent study of buyer behavior, we see that reputation ratings across the industry continue the decline that began more than five years ago. And while overall demand remains strong, government buyers are more price- and value-conscious than they were two years ago. But there is an upside. Our analysis also uncovered opportunities to become more relevant and valuable to public-sector buyers.

About the Research

The Hinge Research Institute has studied more than 40,000 buyers and sellers over the past decade—giving us unparalleled insight into the professional services industry.

Our most recent study of the government contracting industry explores the perspectives of almost 70 buyers and over 140 sellers and examines their perspectives across the following topics:

• How well do sellers of government contracting services really know their buyers?
• What are buyers’ key business challenges?
• How do clients feel about their service providers?
• How do buyers search for service providers?
• How do buyers evaluate service providers?
• How do buyers make their final selection?

Below are four key insights that came out of our report.

Insight #1: The overall perception of government contractors’ reputation continues to decline

When it comes to reputation and value, government contractors are rated lower than all other professional services industries. And government buyers ranked their contractors’ reputations almost 25% lower than they did in 2018 (see chart below). To address this concerning trend, government contractors should pay particular attention to the quality of their service delivery and actively communicate the value they create.

Warren Buffet once said, “It takes 20 years to build a reputation and five minutes to ruin it.” With that sage advice in mind, it would be a good time for government contractors to take notice of this multi-year trend and take proactive steps to reverse it. The good news is that reputation is a perception, not necessarily reality—so for those so inclined, there is an opportunity to take action and change that perception.

Insight #2: Relevancy to solving key issues is greater than other Professional Services

There is some good news in the data. Government contractors are perceived as being more relevant to solving their clients’ challenges than any of the other professional services industries in this year’s study.

So be sure to clearly communicate the value you deliver to your government clients and describe the positive impact you’ve made.  This should make closing more business—with both existing clients and new ones—far easier.

Insight #3: Technology and data Issues are a top challenge for buyers.

Today’s government buyers are focused on modernization. Advanced technology and data issues are even more important than many government contractors realize. In the business development process, clearly lay out your technical capabilities, and use case stories to show how you’ve solved similar problems before. To the extent you can, explain how your team, services and expertise are different from your competitors.

To win in a competitive marketplace, your firm needs to first understand what your buyers truly value, then deliver that value in a differentiated way.

Insight #4: Featuring thought leaders within your organization is more important than ever

When it comes to searching for work-related topics, public buyers still ask peers or colleagues for recommendations (a perennial favorite), but they are increasingly seeking out thought leadership, such as listening to an expert speak or reading an article or blog post.

“Look on social media” might be a less popular research method in 2022, but don’t underestimate the power of LinkedIn. It remains the dominant social media platform used by government buyers.

2023 is a year to invest in “standing out from the crowd”

If your professional services firm provides solutions for federal, state or local government—and you hope to improve the quality and profitability of your work while differentiating services in a competitive marketplace—you success may depend on two factors: 1) your ability to objectively understand your buyers (this study can help), and 2) your willingness to adjust your services and pursuit strategy to meet the needs of a changing marketplace. If you can elevate your firm’s value and reputation (especially when it comes to technology and data issues), your organization can rise above the common government services firm.

To get the full study and recommendations, purchase the full study, Inside the Buyer’s Brain, Fourth Edition: Government Contracting.

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Inside the Buyer’s Brain, Government Contracting Edition

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The post New Research: How Buyer Expectations Have Changed in the Government Contracting Industry appeared first on Hinge Marketing.

One of the best places to get answers to those questions is the just-released edition of our pioneering study of professional services buyers and sellers called Inside the Buyer’s Brain, Fourth Edition: Accounting & Financial Services.

About the Research

At the Hinge Research Institute, we’ve studied more than 40,000 buyers and sellers over the past decade—giving us unparalleled insight into the professional services industry.

Our most recent study of the accounting and financial services industry explores the perspectives of more than 900 buyers and 500 sellers and examines their perspectives across on the following topics:

• How well do accounting and financial services sellers really know their buyers?
• What are buyers’ key business challenges?
• How do clients feel about their service providers?
• How do buyers search for service providers?
• How do buyers evaluate service providers?
• How do buyers make their final selection?

Here are four key insights that came out of our report.

Finding #1: Relevancy ratings have risen to an all-time high—but there is plenty of room to grow

Relevancy for accounting and financial services is at an all-time high. And although that is excellent news, other industries have attained even higher thresholds. This rise may be partially attributed to pandemic-related needs, but now is a great time to lean into that advisory role and clearly communicate your expertise, experience, skills, and services. Don’t assume that your clients understand your full depth of services. Demonstrate ways that you’re more relevant to solving issues, compared to your competitors.

We see that sentiment reflected in “poor customer service,” which is up 142% since 2020—and in “inexperienced, incompetent staff,” which has had an even more dramatic increase of 249%. First, look to mitigate those combined issues with better training and development programs for your staff. Equally as important, make sure you’re communicating in ways that let buyers know that you are highly attuned to those specific concerns. Talk openly about how you handle client service, how staff are trained, longevity of your staff – all things that communicate the stability of the client experience and your ability to deliver quality services.

Another takeaway is the importance of industry knowledge. During the business development process, be sure to talk about your team’s relevant expertise and support it with freely available thought leadership that you make available online.

All of these metrics relate back to a desire to reduce risk. Buyers are asking: Do you get me? Do you understand my needs? Are you going to get the job done? Do you have the people in place? Are staff going to be there when I need them?

Watch the on-demand webinar: Minding the Numbers: What Today’s Accounting & Financial Services Buyers Really Think

Finding #3: Existing relationships have become substantially more important for buyers

Moving forward in the buyer journey and looking at the top selection criteria for buyers, there are two evaluation criteria that really stand out. First, the importance of an “existing relationship” is up 111%. While this trend had been in decline for a number of years, it has suddenly reversed. In times of uncertainty like these, clients are looking to reduce risk. They want to work with partners they already know. This is a key finding to understand.

Combine the desire to work with an existing partner with “offers the services needed,” which is up 151%. Considering those criteria together would suggest you may want to review your business development process. Talk about increasing the frequency of conversations with existing clients to uncover new opportunities. Conduct research to uncover their specific needs and raise the overall quality of your thought leadership to include very detailed industry insights.

Chances are, there is a lot of fruit still on the vine with your existing client base. In times of uncertainty, clients can be averse to change—and they would rather work with a firm they know and trust. An added benefit for you is that it’s a lot less expensive to build new opportunities with existing clients than to develop new relationships.

Research Report

Inside the Buyer’s Brain, Accounting & Financial Services Edition

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Finding #4: LinkedIn dominates, but other social media platforms are increasingly being used for business purposes

This chart looks very different for accounting and financial services compared to other professional services industries. LinkedIn is the dominant social media platform everywhere, but in most other industries the competing social channels are in decline. In the case of accounting and financial services, there’s been a dip in the use of Facebook, which likely reflects a trend where social media channels are being used for specific purposes for specific audiences. Interestingly, we see an uptick in Twitter, Instagram, and YouTube. Unfortunately, the data doesn’t fully reveal why their use is on the rise in one industry but not the others. One explanation could relate in part to job seekers and recruiting efforts across various social media platforms.

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A Few Final Thoughts

Since our last study two years ago, it may come as no surprise that accounting and financial services buyer behavior has changed. Prolonged uncertainty and regulatory changes are fueling buyers’ needs for advice and services—and that same uncertainty is also influencing buyers’ decision-making and a desire to reduce risk.

In this changing landscape, the best way for your firm to stay relevant is by researching your target audiences to understand their specific challenges and needs—as well as where they look for information and how they evaluate service providers. This type of research will validate—or challenge—your assumptions and decisions.

To dive deeper into the data, you can purchase Inside the Buyer’s Brain, Fourth Edition: Accounting & Financial Services, which provides even more insights into your buyers and will equip you with advice you can use to adjust your marketing strategy with confidence—and position you for long-term success.

The post How Accounting & Financial Services Firms are Moving Forward in 2023 appeared first on Hinge Marketing.

To help firms like yours make sense of these changes, the Hinge Research Institute has released an all-new fourth edition of Inside the Buyer’s Brain: Consulting.—our ongoing study of buyer behavior in the consulting industry.

About the Study

The original Inside the Buyer’s Brain study was published in 2013 and provided the first comprehensive look at the differing perspectives of buyers and sellers throughout the entire professional services buyers’ journey. The second version was released in 2018, followed by the 3rd edition in 2020.

This year’s study analyzes the consulting industry in detail, based on input from more than 300 buyers and 300 sellers.

The 2022 study is organized around four questions that examine the key moments in a consulting services buyer’s journey.

Question 1: What are Consulting Buyers’ Top Business Challenges?

Most professional services firms believe they understand the challenges their potential clients face. More often than not, they are wrong. The data below highlights the key areas where sellers either overestimate or underestimate their buyers’ key business challenges.

Question 2: How Do Clients Feel About Their Consulting Firm?

 

Research Report

Inside the Buyer’s Brain, Consulting Edition

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The post New Research: How Buyer Expectations Have Changed in the Consulting Industry appeared first on Hinge Marketing.

About the Research

At the Hinge Research Institute, we’ve studied more than 40,000 buyers and sellers–giving us unparalleled insight into the professional services industry.

Our most recent study that analyzes the technology & software industry details the perspectives of more than 300 buyers and 700 sellers, where we compare their perspectives across on the following topics:

• How well do sellers really know their buyers?
• What are buyers’ key business challenges?
• How do clients feel about their service providers?
• How do buyers search for service providers?
• How do buyers evaluate service providers?
• How do buyers make their final selection?

Here are three key insights that came out of our report.

Finding #1: Technology & software firm visibility is the lowest across all professional services industries

Our research found that the perception of a highly visible firm fell from 23.1% in 2020 to 14.6% in 2022 for professional services as a whole. The news is even worse for technology & software firms, which are perceived by buyers to have the least visibility across all industries. This begs the question: how many opportunities is your firm not considered for because prospects do not know who you are?

There is good news. Increasing your firm’s visibility is very much within your control.

How? Our research also shows that there is a relationship between relevancy and visibility. Firms that are rated as having high relevancy—which means they are perceived by their audiences as having a direct and positive impact on their top challenges and issues—also rate highly for visibility. Visibility can be improved with the right strategy and a marketing program that focuses heavily on educating audiences and demonstrating expertise.In other words, knowing your buyer can increase your relevancy, which in turn can raise your visibility.

Research Report

Inside the Buyer’s Brain, Technology & Software Edition

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Finding #2: Concerns around talent is the top growing issue for buyers

While the top challenge, “technology/data issues”, directly links to the services and advisory technology and software firms provide, the chart above shows that “Finding/keeping good people”, the #3 challenge for buyers, was the only challenge to have risen over the period 2020-2022. This data presents an opportunity for your firm to incorporate messaging around your offerings that address the people side of the equation—technology that helps with efficiency, transparency, and better decision-making for example.

Finding #3: Expertise is more important than ever in the evaluation process

What is the primary driver of influence when buyers are in evaluation mode? In a word: Expertise.

The chart above shows our findings on the top 5 methods used by buyers to evaluate technology and software firms. The prominent role of expertise in some shape or form is evident across each of the responses. Buyers aren’t looking for generalists. Instead, they want true experts to guide them through their (often expensive) technology and software engagements. And they want the proof points behind any claims of expertise.

If you are interested in growth, make sure your sales, marketing, and business development activities are aligned on one thing: freely sharing your expertise in educational content. Case studies are only part of the equation. You also need to produce a steady stream of content that addresses the business problems your audience is trying to solve. When prospective customers find and consume this valuable content, they begin to trust you—and are likely to think of you when they are ready to buy the kinds of services you offer.

A Few Final Thoughts

Customers can be fickle, and more than ever they are demanding that firms prove their expertise. To become the firm of choice in today’s marketplace you may need to do less explaining how your firm delivers value—and more showing your value in the form of educational, expertise-oriented thought leadership.

How do you do that? By far, the best way for your firm to stay relevant is by starting with research on your target audiences to understand their challenges and needs, where they look for information, and how they evaluate service providers. This type of research will validate–or challenge–your assumptions and decisions. Research, such as Inside the Buyer’s Brain, should show your firm how to deliver more value than your competitors.

The post How Buyers Buy: 3 Trends in Buyer Behavior that Every Technology and Software Firm Should Consider appeared first on Hinge Marketing.