The Hinge Research Institute has just released a special government contracting version of its breakthrough study of professional services buyers and the firms that they hire. It’s called Inside the Buyer’s Brain: Government Contractors Edition.
Why This Study Is Needed
These are unprecedented times. Chaotic times. Strange times. But most of all, these are times of profound change. And this dizzying change is affecting everyone—you, your clients, and your prospects.
What was considered a normal and predictable government buyer’s journey at the beginning of 2020 no longer exists today. In-person conferences, tradeshows, and events have been shelved for virtual alternatives. Traditional methods of communicating with government buyers before decisions are made are rapidly moving online and going digital.
Government contractors need to understand how government buyers are behaving in these topsy-turvy times and how they should respond. Fortunately, Inside the Buyers Brain provides real insight into what your buyers think and where the trends are likely to take us in the future.
About the Study
The original study was published in 2013 and provided the first comprehensive look at the differing perspectives of buyers and sellers throughout the entire professional services buyers’ journey.
A second version of the study was published in 2018. This study revealed a rapidly evolving landscape that presented new challenges and opportunities.
The pace and scope of change was so profound that we decided to follow-up with the current study just two years later in 2020. This study also saw the addition of industry specific versions of the report, including this one.
The timing could not have been better. It allowed us to capture the first real indication of the emerging buyer concerns and preferences.
Purchase the Inside the Buyer’s Brain, Third Edition: Government Contracting Edition
Focused on Government Contracting
In the government contracting edition of the study, we explore the challenges government buyers are facing and what they expect from their service providers. We also explore the new client journey from the emergence of a business challenge to the final selection of the firm they ultimately choose to work with.
We then look at the client experience and how it does or doesn’t translate into an ongoing relationship and referrals.
Sampled Both Buyers and Sellers
Using phone interviews and online surveys, we researched more than 180 government buyers and 580 government contractors (firms that do at least 25% of their work with local, state, or federal governments). Because the buyers bought services from the contractors, we were able to study both sides of the relationship.
What Are the Buyer’s Business Challenges?
Unlike other professional services industries, government contractors have a relatively solid understanding of their buyers’ challenges. But there are some important misses. For instance, they tend to underestimate the importance of meeting clients’ high expectations. The biggest disconnects, however, come at the bottom of the list, which are described in the full report.
How Do Clients Feel About Their Service Providers?
Government contractors are the only industry group in this research that has not become more relevant to their buyers’ important challenges since our last study in 2018.
Only 33% of buyers felt the services provided by their government contractors were highly relevant to their biggest challenges—the second lowest industry rating in the study. High-level relevance to the prospect’s key issues not only wins new clients, but it also helps you keep them.
High levels of relevance result in a 76.8% likelihood that the client will be highly loyal. That percentage drops to 45.7% when their contractor is perceived as low relevance. And over 80% of clients that view their firm as highly relevant are likely to recommend them to others.
How Do Buyers Search for Service Providers?
Government buyers are likely to turn to a colleague or conduct a general web search when they want to learn about a business-related topic. They also turn to social media more often than most other industries.
While word of mouth remains the top search method for gathering business-related information, its dominant position is slipping. Web searches (7.6) and social media (5.6) are becoming more and more prominent.
Government buyers are more likely to do a web search than attend a conference or an event. This is significant as many firms center their entire marketing efforts around conferences.
Purchase the Inside the Buyer’s Brain, Third Edition: Government Contracting Edition
How Do Buyers Evaluate Service Providers?
Government buyers want firms with talented staff, industry knowledge and, increasingly, responsive client service.
The more relevant skills, experience, and industry knowledge a government contractor’s team has, the more likely they are to win contracts. Client service is more important than ever. Nearly 40% of buyers factor in client service when choosing a contractor. This number has increased 170% since 2018. The demand for industry knowledge and ability to deliver results are also on the rise as top evaluation criteria for buyers (just above 30%). Relevant experience/past performance, while down slightly, is still the number two evaluation criteria for buyers.
What Does This Mean for Your Firm?
Government buyers are changing the ways they research, value, and select the government contractors they want to work with. Government contractors need to understand how buyers are evolving—and how their firm can adapt before the competition.
It’s time to get serious about digital. Consumers and clients have been migrating to digital communications channels for many years. Over the years, we have watched digital approaches overtake traditional marketing and delivery channels. And with today’s widespread remote-work reality, the time has come to act. Buyers are free to search for the specific expertise they need, independent of geographic location. Don’t get left behind waiting for things to “get back to normal.”
Focus on the relevance of your services. Making your expertise visible is important, but don’t forget to make it relevant to the buyer’s challenges as well. Don’t assume that your potential client understands what they need or how you can help them, even if it seems obvious to you.
Part of your job is connecting the dots between the buyer’s challenge and your solution. And don’t forget to reinforce that relevance on a regular basis. If not, you can easily get taken for granted over time.
Changes in buyer behavior are reducing the impact of traditional approaches. Buyers are changing their behavior at a fast clip. Many traditional business development strategies are less effective for government contractors. This includes promoting the firm at conferences and tradeshows. While government buyers still rely on referrals when searching for a contractor, they are doing more web searches than in the past and looking on social media.
We’ve given you a glimpse inside the government buyer’s brain. The way government clients buy professional services is undergoing a transformation. And firms that are able to adapt to these changes will have a significant advantage in the evolving marketplace. Research like this can give you an edge.
