So just last month we enrolled our daughter (upon her own request) in Gracie Jiu-Jitsu.
It’s super fun because she’s not even four yet…
So along with her similar-aged classmates, most of the experience involves some light tugging and throwing ones-self to the ground while half-paying attention to (a) the other kids in the class, (b) whether or not their belts came untied, and (c) how long until they get to race to the dodgeball bin.
One thing she’s really good at: having fun despite adversity.
In fact, just on Tuesday she took a nicely timed right hook to the face from an overzealous 5-year old and responded with a confused “what’s wrong with you” face, only to continue giggling as she fell over on top of the next kid in line.
What she’s not so good at?
Keeping track of how many pushups she’s done.
(Somehow one half of a pushup = a four-count.)
And it must run it the family, because I regularly lose track of:
- What day it is (usually about 2 days later than I assume).
- Whether or not I fed the dog this morning (he either participates in involuntary intermittent fasting and/or gets a bonus meal at least once a week).
- And whether or not I published my daily email (loose term these days).
Despite this, just like my daughter, I soldier on…
And so today I’ll throw out two additional findings from The Consulting Lead Gen Study, which also fall into the “information gathering category.”
(You can find the first two findings here.)
Finding 3: Lifetime Value Is High
For most firms (53%) their average client lifetime value is $50k or above.
Interpretation: Because of this, most firms can absorb a significantly higher customer acquisition cost than a typical services business. This means that a great deal of time, effort, and budget can be spent acquiring just a single client while still preserving enough return on investment to justify the cost.
It also opens up the door to in-depth, personalized, high effort lead generation strategies that are better tuned to a sophisticated buyer with a budget and a highly-refined B.S. detector.
Finding 4: Lead Volume Is Low
Most firms (53%) need less than 6 qualified leads per month in order to sustain their current capacity.
Interpretation: This means that even a marginal improvement in lead flow (in raw numbers) can significantly impact a firm’s growth rate and revenues.
Pit this against the more generalized marketing approach a traditional services business needs to employ to attract the higher volume of leads they need to operate profitably, and you can start to see why the standard advice is not appropriate for the dynamics of consulting sales.
So far we’ve established:
- Consulting lead generation is difficult.
- Sales cycles are long.
- Lifetime value is high.
- Lead volume is low.
Which simply set the stage for the discussion to take place.
Tomorrow we’ll start to actually dig into how firms acquire clients.