Finding meaningful client insights to drive future revenue growth is exceptionally difficult for consulting firms. Many struggle to gather and leverage these insights effectively, despite recognizing how important they are.
The root of this problem lies in the limited scope and scale of client interactions. Practice leaders and subject matter experts often work with only a few clients on specific issues each year. This narrow exposure creates a significant hurdle:
How can firms confidently identify broader market trends or validate best practices based on such a small sample size?
The answer lies in creating a structured approach. By implementing systematic processes for gathering and analyzing client insights, firms can transform these limited interactions into valuable growth drivers.
Here we explore a framework that can help.
More On the Small Sample Size Dilemma
This “small sample size dilemma” we mentioned above manifests in several ways:
- Some consultants build careers working almost exclusively with one or two long-term clients on just a couple of issues per year. Within that,
- Firms struggle to determine if the challenges faced by their limited client base truly reflect wider market trends.
- Validating “best practices” becomes a guessing game when working from such a narrow experiential base.
This constraint leaves firms struggling with critical questions: How do you know if the issues one client faces are indicative of broader issues faced by other clients? How can you know if best practices you help develop for one client are really best practices? Are the one to two relationships that firms have with clients producing sufficient evidence of a broader need in order to scale up a new service offering or practice? And when is it too soon or too late to scale?
Clearly, relying solely on direct client engagements is insufficient for driving long-term growth. Firms need a more robust approach to insight gathering — one that amplifies the value of their client interactions while also tapping into broader market intelligence.
A Structured Approach to Overcoming Insight Challenges
So, how can firms uncover transformative client insights? The answer lies in a systematic, multi-faceted approach.
- First, create dedicated time and space for open, big-picture conversations with clients. Firms say all the time that they “know their clients,” but they really only know them through the lens of the work they do together. Move beyond project-specific discussions to explore their broader business landscape and emerging challenges. Make these dialogues a regular (multiple times a year) occurrence, not a one-off event.
- Next, foster cross-pollination of ideas within your firm. What is everyone seeing? What’s emerging? What’s downright weird that you’ve never seen before? Cluster and group issues into themes and opportunities. Extend this to include the conversations you’re having with prospects (make sure business development or practice leaders with new client responsibilities are at the table).
- Consider establishing an executive round table program. If you’re already doing this but are frustrated with the results, consider hosting a regular round table discussion with clients and prospects. One of our consulting firm clients had great success with a COO round table. COOs were recruited to join a virtual round table three times a year. A moderator hosted a pre-call with each member to establish the agenda and then hosted an open discussion with peers. Based on the topic, a firm SME moderated the discussion. The round table was the catalyst for thought leadership topics and emerging, new service offerings. During COVID this process consistently helped us keep the firm’s thought leadership agenda nine months ahead of their peers and the greater market.
- Don’t shy away from original primary research. Use the insights gathered from client conversations and round tables to fuel quantitative studies. This data-driven approach helps validate hunches and determine if observed issues truly resonate across your target market. Is this a big problem for the market you serve or just the specific clients you already have? Is it critical to the market? Are potential clients confident in their ability to solve the problem?
- Finally, test the waters with targeted thought leadership before fully committing to new practice or service areas. Publish your findings across multiple channels, using a mix of written, video, and audio content to tell the story. Look for spikes in website traffic, branded search activity, media interest, and high-quality leads from previously untapped sources.
The Path to Profound Client Insights
Uncovering profound client insights is no small feat, but it’s the lifeblood of innovation and growth for professional services firms. The journey from limited client interactions to market-moving discoveries requires a deliberate, multi-faceted approach.
By implementing this structured approach, firms can transform limited client interactions into a robust engine for insight generation and growth.
