How did many accounting and financial service (A&FS) firms increase their growth and revenue during this past year of market uncertainty and rapid change?
After researching 427 Accounting & Financial Services (A&FS) firms representing nearly $65 billion combined revenue and more than 220,000 employees for this year’s "High Growth Study 2022, Accounting & Financial Services Edition," we have the answer.
The study found that the fastest-growing firms surged in top-line revenue with a median growth rate of 30%. These firms also are much more likely to be highly profitable even with their investments in technology and marketing expertise.
These high growth firms benefited from four key strategies: Talent, Technology, Marketing and Strategy. Your firm can benefit from them, too.
Key Advantage 1: Talent
The forecast for hiring top talent was bleak even before the pandemic, particularly for A&FS firms. In response, many companies are building workplace cultures and benefits with lasting appeal to job seekers.
But High Growth A&FS firms did not let this challenge slow their progress. These firms frequently turn to outside agencies and freelancers for website improvements and marketing materials. What’s more, they search out partners who thoroughly understand their industry and have the expertise to implement new strategies and techniques for growth.
Key Advantage 2: Technology
Is your firm reluctant to automate business operations? High Growth A&FS firms are not. They are evolving mature processes that power growth and profitability from core operations to marketing automation to business development functions.
High Growth firms also adopt Customer Relationship Management (CRM) systems at a much higher rate than their counterparts. CRMs are the single biggest advantage in leveraging technology. But purchasing the software is not enough. Proper training, ongoing optimization and systems integration are necessary to maximize the full benefits.
These High Growth firms also are using sophisticated reporting to track business operations and marketing metrics. Access to real-time data helps these companies make informed business decisions and adjust their strategies if necessary.
Key Advantage 3: Marketing
High Growth A&FS firms made substantially higher marketing investments to drive growth and profitability—with 15% of their 2021 revenue devoted to marketing. Unlike No Growth firms, they invest more in digital marketing techniques that promise the greatest ROI.
Marketing technology and automation are the top priorities for 30% of High Growth firms. Content creation is the second. A focus on thought leadership, social media and search engine optimization (SEO) increases their visibility and credibility among prospective buyers and job seekers.
Meanwhile, No Growth firms lag in social media, website performance and brand differentiation.
Marketing technology and automation are the top priorities for 30% of High Growth firms. Content creation is the second.
Key Advantage 4: Strategy
What keeps your senior leadership awake at night? We found that executives of High Growth A&FS firms are focused on very different challenges than their competitors. These CEOs are expanding skill sets and increasing automation, while their No Growth counterparts are more concerned with finding talent and managing a remote workforce.
With an eye on managing change and responding to unpredictability in the marketplace, these High Growth firms may be better prepared to respond to new challenges and opportunities.
What’s next for these firms? High Growth firms are focused primarily on the future and technology issues, such as data and analytics, AI, cybersecurity and workflow automation.
Growth and profitability are possible even during times of market uncertainty.
Today’s High Growth A&FS firms embrace new technologies and invest in digital marketing techniques that generate the greatest return on investment. By becoming more digitally mature, these companies are making informed business decisions and gaining greater visibility in the marketplace.
It is not too late. Now is the perfect time for your firm to start developing a business strategy that focuses on future growth, not just on current challenges.
Lee W. Frederiksen, Ph.D., is Managing Partner at Hinge, the leading research-based branding and marketing firm for professional services. Hinge conducts ground-breaking research into high-growth firms and offers a complete suite of services for firms that want to become more visible and grow.
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