Growth strategy can mean different things to different professional services businesses. If the business has been successful, a growth strategy might simply mean scaling services to meet demand. Alternatively, it could include social selling, partnering with complementary firms, cold outreach, or building personal networks.
While it’s good to be diverse, the trouble with a non-strategic approach is the lack of consistency. Maybe a hot prospect comes in that gets all the team’s attention. Or a couple of cold calls go poorly and it’s back to the drawing board. Or maybe one person is just really good… or really lucky. Neither attribute is scalable.
Without strategy, it’s hard to focus on the big picture and keep things moving forward. The first step in building a robust growth strategy is setting up benchmarks and measurements. Consider each growth tactic and ask specific questions about the time it takes and what success looks like.
For example:
- How many cold calls should be placed before determining the success of the approach? And can one person generate enough calls to hit that number? If only one person, can that single person’s success or failure be attributed to the approach or to the person?
- How many hours need to be invested into developing a partnership? And will a partner be content to partner with just one person, or will it expect to work across the whole organization? At what point do these partnerships exhaust the organization with their grandiose promises that never seem to materialize?
- How much impact can one person realistically have through social selling? And how long will the impact take?
Without measurement, leaders can’t understand what’s working and what’s not, what initiatives they should invest in and those they should end, and where to go next.
Companies that don’t measure initiatives might experience:
- Wasted Resources: Without tracking and analysis, a company may invest time, money, and effort into activities that are not delivering results.
- Inconsistent Performance: Unpredictable performance can lead to difficulties in financial planning and budgeting. Companies may struggle to forecast revenue and expenses accurately, which can impede overall financial stability.
- Lack of Insight: Companies that don’t understand what their prospects are saying/feeling/needing can’t guarantee that future growth messaging and efforts will be effective.
- Ineffective Marketing: Marketing campaigns may lack relevance and resonance without data insights. This can result in lower customer engagement, higher customer acquisition costs, and inefficient use of marketing budgets.
- Employee Frustration: Employees may lose motivation if they don’t understand the impact of their efforts and how it plays into the larger picture. They may ultimately lose trust in leadership.
Below are some ideas for creating a measurement structure based on various growth tactics.
| Growth Tactic | Key Performance Indicator (KPI) | Good to Excellent Range |
| Digital Marketing | Monthly Unique Visitors | Steady growth with a significant increase |
| Conversion Rate | Increasing, ideally above industry averages | |
| Return on Investment (ROI) | Positive ROI with revenue significantly exceeding costs | |
| Click-Through Rate (CTR) | Higher than industry benchmarks | |
| Partner Strategy | Partner Revenue Contribution | A significant portion of total revenue comes from partners |
| Number of Partner Deals Closed | Increasing number of partnership agreements | |
| Partner Satisfaction Score | High satisfaction scores from partners | |
| Expanding Services | New Service Revenue | Steady increase in revenue from new services |
| Customer Adoption Rate | High adoption rate among existing customers | |
| Outbound Activity | Outbound Sales Conversion Rate | High conversion rate from outbound leads |
| Lead Response Time | Quick response times to leads | |
| Sales Pipeline Value | Healthy and growing sales pipeline value |
Setting up measurements and benchmarks takes time and money, which is why it often does not get prioritized. To start, it’s helpful to consider the things that you’re already doing and how those things are contributing to a broader growth strategy (or not). Below, we’ve highlighted common growth strategies and key metrics to consider.
| Growth Strategy | Key Metrics to Track | Explanations |
| Client Relationship Management | Client Satisfaction | Measure client satisfaction through surveys or feedback forms. High satisfaction scores indicate effective client relationship management. |
| Client Retention Rate | Track the percentage of clients who continue to do business with your firm over time. A high retention rate demonstrates strong client relationships. | |
| Net Promoter Score (NPS) | Calculate the NPS by asking clients how likely they are to recommend your firm to others. A high NPS suggests satisfied clients who may refer new business. | |
| Niche Specialization | Revenue from Niche Clients | Measure the proportion of your firm’s revenue generated from clients within your specialized niche. A growing share of revenue from this niche indicates the effectiveness of your specialization. |
| Market Share | Track your firm’s market share within the specialized niche. A rising market share suggests that your firm is gaining prominence within that segment. | |
| Client Testimonials and Case Studies | Collect and showcase client testimonials and case studies specific to your niche specialization. Positive feedback and success stories validate your expertise in that niche. | |
| Thought Leadership and Content Marketing | Content Engagement Metrics | Monitor metrics such as website traffic, page views, time spent on pages, and social media shares for your thought leadership content. High engagement signifies that your content is resonating with your audience. |
| Lead Generation | Track the number of leads or inquiries generated through your thought leadership content. The conversion of website visitors into leads is a critical metric. | |
| Content Authority and Backlinks | Measure the number and quality of backlinks your content earns from authoritative sources. A higher number of backlinks demonstrates your content’s authority in your field. | |
| Strategic Partnerships | Number of Partner Collaborations | Track the number of partnerships formed and collaborations with complementary firms. A growing count suggests successful partnership strategies. |
| Joint Revenue Growth | Measure the revenue generated through strategic partnerships. A rising trend in joint revenue indicates that partnerships are contributing to growth. | |
| Partner Satisfaction | Collect feedback and satisfaction ratings from your strategic partners. High partner satisfaction levels suggest the effectiveness and sustainability of partnerships. | |
| Digital Presence and Online Marketing | Website Traffic and Conversion Rate | Monitor the number of visitors to your website and the conversion rate of visitors into leads or clients. An increasing conversion rate demonstrates the effectiveness of your website. |
| Keyword Ranking | Track the rankings of relevant keywords in search engine results. Higher rankings indicate improved visibility and search engine optimization (SEO) effectiveness. | |
| Return on Investment (ROI) | Calculate the ROI for your online marketing efforts, considering the cost of advertising and the revenue generated. A positive ROI is a clear indicator of effective online marketing. |
Establishing basic benchmarks and measurements is an excellent first step to improving your growth strategy. Insights from your measurements will guide you to more effective decision making and stronger long-term plan.
If you need help establishing measurements and setting up your business for the next phase of growth, Sentinel Way is here to help. Reach out about scheduling a growth strategy today.
