What Buyers Want 2: The Buyer’s Selection Process

 
This is the second of three issues devoted to explaining key findings from Hinge's study of purchasers of professional services. This month, we explore how buyers of professional services choose a firm. Understanding these principles can have a profound effect on the way you interact with your prospects.

 

Wouldn't you have a considerable competitive advantage if you knew upfront which criteria prospective clients were using to evaluate you? We think so. As part of our study of professional services buyers, we asked private sector and government buyers to offer insights into their decision-making process.

When asked to list important selection criteria, survey participants offered a wide range of answers. Because the questions were open-ended and many responses were similar, we organized the answers into 11 categories. Here are the criteria our repondents said were important:

 

What Buyers Want

Not surprisingly, many buyers put expertise and technical skills at or near the top of their list: they want a firm that knows its stuff and won't be learning on the job. Interestingly, price was listed by only 4.2% of respondents. Clearly, buyers value technical proficiency far more than low cost. We suspect that many firms have been burned in the past by disappointing low-cost service providers. This also explains buyers' preference for firms that have relevant industry or service experience.

Confidence in the project team is another critical factor in the selection process. Buyers are looking for answers to a range of questions:

• Will qualified people be doing the day-to-day work?
• Will the people who sold the work be involved in the engagement?
• Will there be personal chemistry between client and service provider?

They want assurance the team will deliver what is promised.

A firm's reputation also contributes significantly to a buyers' decision. Is the firm known for doing great work? Do they have extensive experience? Have they been referred by respected peers? Are they always top of mind? A great reputation not only creates more opportunities — buyers often want a market leader in the proposal mix — but it can tip the scales during the decision-making process.

What Buyers Want to Avoid

Discerning buyers are looking for clues that a service firm is going to make their lives easier, not create new headaches. To some degree, companies and organizations buying services are motivated by fear. When an engagement goes badly or costs skyrocket, the reputation of the individual or group that made the buying decision can suffer.

The Three Things Buyers are Looking For

It takes more than expertise to win a professional services contract. You also have to provide assurance that your firm will meet all their expectations. To deliver the maximum confidence to a buyer, you must satisfy three major criteria (in this order):

1. Fix their problem
2. Make life easier for them
3. Build a personal relationship and trust

Fix their problem: Fixing a prospect's problem means identifying and addressing any underlying issues — not just reflexively doing what the prospect says it wants. Communicate to the buyer that you understand their larger problem and that you have a talented team that can solve it.

Make life easier: Explain how your process ensures a smooth engagement and how your firm proactively anticipates problems. The buyer needs to believe that your firm will make their job easier, not more difficult.

Build a personal relationship: Clients want to work with people they like and respect. So reassure any prospective client that the personnel they meet in the pitch or interview will be involved in the engagement. This doesn't mean that a principal has to be doing all the work. But he or she should be involved to some degree on a regular basis, including significant face time and site visits (if applicable). If you can satisfy items 1 and 2, the relationship often takes care of itself.

Conclusion

If you can change your business development approach to address typical professional services buyer wants and fears, your firm will be far better positioned to win more contracts and increase revenues. Take a look at your firm's messaging and proposals from a prospective client's perspective. How well are you responding to the questions that resonate with them?

 

 

Coming next month: We'll explore tactics that will help your firm expand the client relationship and generate critical referrals.