Creating a Data Consulting Proposition: How do you pick a winner?
The key to attracting clients to your data consultancy relies on selecting the right proposition for your firm to take to market.
Pick the right proposition, and you'll find prospects hunting you down, desperate to talk. They'll fill in your website contact forms, attend your webinars and reach out to you on LinkedIn.
But get it wrong?
Attracting clients becomes tougher than Navy SEALS selection.
To help you make the right decision, I've come up with a simple 5-part model to help you sanity check your data proposition.
Ready? Let's dive in.
The Riches are in the Niches
If you run a specialist data consultancy, developing a compelling proposition is critical. It will make or break your firm.
Consider the following proposition examples:
Proposition #1: "We provide a range of data quality consulting services".
Versus...
Proposition #2: "We help telcos and utilities reduce Capex and Opex with the help of our unique data-driven, stranded plant recovery solution."
If you were a telecoms or energy business leader, chances are you'd find niche #2 intriguing enough to explore further.
But proposition #1?
Hmm...It's a little, well, boring, right?
From the painful experience of trying to pitch data quality in my old consultancy, most business leaders would prefer to complete a tax return than talk about data quality.
These two examples demonstrate opposite ends of the proposition spectrum - from broad and non-specific, to narrow and highly-targeted.
A consulting proposition's goal should be to evoke curiosity and engage the inquiring mind of your Ideal Client Profile.
It's clear which of the propositions is more likely to ping the 'curiosity cortex' of your buyer's brain.
Now think about your own data consulting proposition, are alarm bells starting to ring
What factors shape a data consulting proposition?
When you're thinking of developing a new or existing consulting proposition, you need to be mindful of a broad range of factors such as:
Which industry or vertical do we tend to specialise in most often?
What outcomes and results do we generate that have the most significant impact?
Who benefits the most from our services? What is their role?
What problems are we most effective at solving?
We're scratching the surface here; there are many other factors to consider when designing a proposition.
However, this list highlights that problem selection is the most critical element of your proposition when attracting future clients.
No pain - no gain
'What problems do we solve' is the critical question to ask when piecing together your data consulting proposition.
Why? Because when your prospects have a problem, they actively search for solutions.
Your Buyer's Quest for Pain Relief
First, your ideal customer will ask their colleagues and contacts for recommendations and referrals.
If they draw a blank, they often look to the consulting firms their employer or client has worked with in the past.
Next, they hit the internet, searching for solution providers via Google and LinkedIn.
For example, one of my LinkedIn groups regularly attracts posts like the one below from organisations desperate for advice on which vendor to use for Data Quality / Data Governance tools, training and experts:
As an owner of myDataBrand, Data Quality Pro and Data Migration Pro, I regularly take calls each month from organisations desperate for consultants and software vendors to help solve thorny data issues.
The Bigger the Pain, the Bigger the Budget
Problem selection is critical because big problems attract senior attention, leading to larger budgets and serious commitment.
We've all experienced the difference when the commitment to resolving a problem is already in place. It feels like a completely different sales process.
When you nail your proposition, you're no longer pushing on a closed door. Instead, the door swings open and you're warmly invited inside to discuss the problem and how you can help.
Problem-focused Propositions are Magnetic
When you insert a problem into your proposition statement, it's like a magnet for stressed-out prospects who want an end to the pain and frustration.
If you can position your data solution as a credible solution to solving a pressing problem, and weave that into your proposition marketing, you've got the basis of a growth engine for your consultancy.
But enough of the 'why', let's explore the 'how'.
Here's a simple framework that casts an eye over your problem selection and helps you spot any gaps in your approach.
The 5V Problem Review Framework
Once you've identified a shortlist of problems that your consultancy could solve, review using the following 5V's and make a note of any concerns.
It also helps to get an external consultant or coach to work through this model with you, to sanity-check your approach. Never create your proposition in a vacuum.
VELOCITY: Is this problem likely to increase or decrease in importance as time goes on?
Some problems burn brightly but quickly fade away.
Do you remember 'Solvency II specialists' popping up everywhere, riding the wave of the day?
The challenge is that some problems have a limited shelf-life.
Be wary of building your entire business on a single proposition that will fade in importance over time.
Yes, it's sometimes helpful to capitalise on the latest 'hot' problem, but remember you're trying to build a business that stands the test of time.
If you're building a content marketing strategy to support your consultancy (which I strongly recommend), you'll need to think long-term about your problem selection.
It can take time to build your authority on your website and LinkedIn, so be sure your content will continue to rank and attract clients for years to come.
VALUE: Does the outcome of solving the problem justify the type of fees you want to charge?
Question: Why is that some firms get to charge a premium, but many are left fighting for the scraps?
Answer: Not all problems are created equal.
You only need to look at strategy firms such as McKinsey and BCG. They charge some of the most expensive fees because they solve some of the biggest problems that executives and leaders face.
Take this 16-page proposal from McKinsey as an example.
They were able to set fees of $5,000,000+ for a 12-week engagement because they're attempting to alleviate the impacts of one of the most pressing problems the planet has faced in our lifetime.
Value is personal
Another element of 'Value' relates to whether anybody values the problem enough to do anything about it.
For example, organisations have flouted data privacy and data protection best-practices for years. Yet, because executives never valued its importance, there were limited budgets put aside to solve the problem.
Then GDPR comes along, and all of a sudden executives everywhere suddenly value the importance of not getting their business dragged through the press and slapped with mega-fines.
Hence, data protection budgets for GDPR suddenly materialise because the problem became personal. Executives can now be dragged through the courts and press, who wants that?
Value is about timing
People value different problems at different times, so think about the timeline for the problems you solve, their triggers and milestones.
Who is most likely to be motivated to solve a problem at a certain point in time?
I created a Data Migration Checklist and Planner because when I ran my data migration firm, I noticed many migration leaders were clueless about how to plan their project right at the start.
By creating a checklist to help them get started, I ensured I would be front-of-mind when it came to them looking around for help to deliver the more complex aspects of the data migration.
VOLUME: Is the problem widespread enough to sustain your sales pipeline?
Volume is a trickier dimension to measure because you can't always find publicly available research and reports that detail how widespread your problem is.
Verify your problem hypothesis
Why not carry out your own research?
Speak to past colleagues and senior managers. Listen to the language they use to describe the problem and get their feedback:
Can they think of projects that tackled that problem in the past?
Do they describe it in the same terms that you use?
Does the problem resonate with them?
Build a relationship network on LinkedIn and reach out to people with the express reason of discussing the problem and its relevance.
But don't pitch your services.
It's not the right time and will kill off the relationship before it even begins. That said, your research will be memorable, so if the same problem impacts them personally in the future, you'll be front-of-mind.
Commissioning problem-based research
For a modest budget, you can request a custom research project to validate your thesis.
At myDataBrand, we also carry out research that helps data vendors assess what problems are relevant based on different roles, markets and industry trends.
During this Data Migration Research Study we delivered for Experian, we found that organisations were increasingly keen to keep the Data Quality tools and processes implemented during migration and roll them into an ongoing BAU data Data Quality Assurance capability.
It's insights like this that can help you discover new propositions you never knew existed.
Don't be a small fish in a big pond
Don't assume because the 'reachable market' for your problem is small, you can't sustain your consulting firm.
I work with a boutique consultancy owner with a current market of no more than 300 organisations. Yes, it's a tiny market, but they're comfortably pulling in over £1.5million each year because they focus on a painful problem that is common across the sector.
The lesson?
It pays to be a big fish in a small pond.
VALIDITY: Do you have the credentials and experience to demonstrate credibility?
Have you got the data chops?
Last year I took a breakthrough call from a fledgeling consultancy owner that wanted to launch a Data Science consultancy.
They were interested in the content marketing and lead generation training I teach to data consultancies.
The problem? The firm had no valid expertise within the field.
The founder knew a little, mostly from courses and a very sketchy project, but the business model relied on associates for delivery.
I turned this client down and refused to train them because it was clear they lacked 'validity' as an expert data consultancy. There was no credibility and capability behind their brand, so they were unlikely to get results.
Side note: I just took a look at their profile a few minutes ago, it looks as though they wound up the firm in December last year and are now focused on an entirely different business - the signs were there from the start.
Of course, not every data consultancy founder needs to be a 'data guru', author or grizzled veteran.
But you do need a guiding force within your firm that is an experienced talent; otherwise, no amount of sales and marketing will convince clients you're a valid, credible supplier.
The myth of "Fake it 'til you make it..."
As you've probably realised by now, when applying content marketing to your data services, it requires a serious depth of expertise.
Don't kid yourself that writing a few '5 Tips for Machine Learning Your Way to Data Success' blog posts is going to convince a Chief Data Officer to hand over a contract.
Your data consulting proposition will only be successful if it's built on valid expertise and experience.
VISION: Does your proposition problem align with the vision and direction of your firm?
When I look at the most successful data consultancies I've helped over the years, they all have a clear direction and purpose.
Many years ago, when I first launched a data consultancy, I hopped from problem to problem, reacting to any clients that materialised out of the ether.
Yes, I got some decent revenue in the first year or two, but ultimately it slowed me down, stalling my marketing and growth over the long term.
I now regret not having that singular vision and focus that eludes so many firms, and is passed as a 'nice to have', or something that only the 'big firms' need.
Lean into your passion
When I speak to consultancy founders on breakthrough calls, it's often clear within minutes where their passion lies.
Cracks appear when you try to steer too far away from the passionate 'inner core' that makes your consultancy distinctive, impactful and a leader within its niche.
Beware the 'Smorgasbord' Proposition Portfolio
It can really confuse prospects when they look at a data consultancy that combines seemingly disconnected propositions.
For example, when prospecting recently, I noticed a firm that 'specialised' in Business Intelligence, Document Management and Data Privacy.
Their website screamed 'generalist!'.
When this happens, your content strategy becomes a mess of confusing articles and promotions, all battling for attention, with no clear message cutting through.
Look at every problem you could solve and ask:
"Does this truly represent our core vision and focus as a specialist data solutions provider?".
Simon Sinek sums it up perfectly when he asks you to explore your why?
What next for your proposition?
Want to create a truly compelling proposition for your data consultancy?
Find expensive problems that are smack-bang in your data consulting wheelhouse of expertise and credibility.
Take a look at your primary data proposition, or perhaps you have several, and ask yourself if each problem is clearly communicated and meets all of the 5V factors above.
But don't do this research alone, test your 'proposition thesis'.
Create webinars, speak to past clients, commission research, host polls and surveys - anything to gauge 'problem resonance' with the market.
Be mindful that you may have the foundation of a strong proposition, but you don't yet have the network foundation to promote and validate it, particularly on LinkedIn or your website.
You may be putting out articles and webinars that fall flat with your market, so you fear your proposition is a dud.
But the real problem could be you've not yet built the audience platform. Please don't be too hasty to throw out a seemingly magnetic proposition; it takes time to test.
The lesson?
Go all in and be patient.
And, if you have the budget available, get help sooner rather than later.
Need help developing your data consulting proposition?
Want to launch your data proposition to a captive audience?
I'll help you design and launch your data proposition so you can get it to market in weeks, not months.
We'll work together to design, test, market and sell your data proposition using a proven proposition launch process, custom-built for the data sector.
With my existing data management media platforms, you'll be able to share your proposition with a captive audience, helping you to attract new clients and validate your offering.
And if you need some primary research to research the problems related to your data proposition, we've got you covered too.
Want to find out more? Just book a breakthrough call today, we'll discuss your ideas and put together a plan for Q1 2021.