Do Clients See You as an Industry Insider?

What expertise do your clients value most? A deep understanding of their business. Most technical professionals assume that expertise in their own field of practice is what matters most. But that's table stakes. Clients obviously expect you to know your business. What sets you apart is how well you know their business.

Very few client organizations exist primarily for the purpose of doing A/E or environmental projects. These projects are a means of achieving some kind of business outcomes. Focusing on those outcomes is an emerging competitive advantage in our profession. But you can't produce these results consistently without understanding how your clients' business works. And the best way to know their business is to become an extension of it—to become an "industry insider."

So how do clients perceive your firm? Are you and your colleagues viewed as insiders or outsiders when it comes to their business. Of course, you can't be expected to have a deep understanding of all your clients and their respective industries. But the important question is: Are you seen as as an industry insider for for those industries that constitute a substantial part of your revenue?

An industry insider is not only knowledgeable of that business but actively participates in it. So let's say that higher education is one of your core markets. Do you simply design facilities for it, or do you know the trends driving that market from an insider's perspective? Do you understand how demographics will change future enrollment? Or how slower tuition growth is fueling greater competition among schools? Or how the student loan debt crisis might impact them??Is your firm in some way involved in shaping how that industry responds to these trends in the context of the projects you perform?

If you think client-specific trends like these don't really matter to your business, think again. Sure, you can provide services to businesses you don't know very well. But that's the fast track to commoditization. This has been evident among the many firms I've worked with over the years. Those that positioned themselves as a real player within targeted client industries have generally been the most profitable and fastest-growing. Those that served a broad swath of client industries without specializing have suffered most from fierce competition, price sensitivity, and client turnover.

Becoming a recognized industry insider within your target markets is a demonstrated competitive advantage. So how do you get there? A few suggestions:

Research your clients' businesses.?Given the easy access to market and client information on the internet, I'm perplexed by how little research most firms do. Don't have time? Make it a priority, and perhaps delegate some of the responsibility to others (e.g., administrative and junior staff) that have some availability. Firms that give priority to market research are?more profitable and grow faster.

Talk to clients about their strategic needs and concerns.?Don't limit client conversations to technical issues and personal chitchat. Find out what defines success for them, what issues cause them particular concern, and how their business is changing. But beware of limiting this information gathering to one or two client contacts. Expand your base of contacts inside the client organization (where possible), and talk to other suppliers who know the client well. Supplement what you learn with more focused research (such as SEC 10K filings for publicly-owned companies). Then determine how your firm can better help them achieve their pressing business objectives.

Get involved in their trade and professional associations.?By involvement, I don't mean simply attending events. Become an active participant in committee work, especially those that are most strategic to their industry. For example, my previous employer was a key player in working through client trade organizations to help influence changes in environmental regulations that would save our clients millions of dollars in compliance costs. That earned us a great deal of credibility among clients in those industries.

Share your expertise through targeted writing and speaking.?These same trade organizations typically sponsor conferences, seminars, webinars, and publications where you can share your insights on issues of importance to their business. To become a recognized industry insider (i.e., thought leader), you should have something interesting to say and do so on a regular basis. Seek outside help, in terms of research and writing, if necessary. It's a worthwhile investment.

Develop other resources helpful to those industries.?You might prepare relevant articles, white papers, and ebooks and share them through your email list. Or publish regulatory updates or planning checklists. Or establish a resource website specifically targeting people in those industries who might be interested in hiring you. One of the best ways to establish your reputation as an industry insider is to offer resources that help companies in that market be more successful.

Build peer relationships within your clients' businesses.?Partner with other service providers to offer distinct integrated solutions, as well as to share knowledge and insights about those industries. Especially consider affiliations with experts outside the AEC industry, since these are less common and may offer distinct value to clients. For example, you might build alliances with attorneys who specialize in legal and regulatory support within your target markets. Or financial experts who can help clients find funding for their projects.

Hire people out of those industries.?There's real value in having people on your staff who can really see things from the perspective of clients. They've been there. They often have instant credibility that can take you years to establish on your own. But do your due diligence; confirm that they are known and respected in their industry.?

Don't confuse business development focus with becoming an industry insider.?Market focus to many firms simply means seeking more sales opportunities within that market. But what I'm describing goes much deeper. Becoming an industry insider means being recognized as a valued contributor to your clients' business, not just another firm seeking to mine it for revenue. The core philosophy is this: Help clients succeed and they'll help you do the same.