Overall, the majority of respondents to the Deltek A&E Clarity study shared an optimistic view about opportunities and growth potential in coming years. Conversely, the long-term effects of the global pandemic did shock the industry with handshakes and face-to-face meetings becoming collateral casualties. As a result, the loss of these interpersonal connections was far greater and impactful than many could have imagined, and this sudden mandate and frankly need to socially distance inevitably left its mark on the way people interact and nurture relationships. As a result, this year’s Deltek A&E Clarity results are that much more significant as they shed light onto the future of A&E business development tactics that firms have embraced and will likely continue to utilize well into the future.
Top Three Business Development Challenges
Finding time to nurture client relationships seems to be a list leader year after year for the A&E industry. However, the number of respondents that listed this as a top challenge grew five percent from prior years. Increased competition is second on the list with 22% of respondents putting this as their top BD challenge. While the third top challenge was identifying new prospects, with 15% of respondents listing this as their top challenge.
Interestingly enough, 14% of respondents indicated that their firm’s business development model has dedicated BD staff, 39% have a seller/doer model, and the remainder a combination of both. Even more, firms reporting having a formal business development process declined from previous years. Identifying the exact correlation on how these different BD models and lack of processes impacts these top BD challenges is difficult to measure, however there is with some certainty a direct relationship.
Bidding to Winning
This year’s Deltek A&E Clarity study found that more firms are employing a formal go/no go process with an increase to 75.7% with 51% stating they use a formal process for all opportunities. For firms not using a formal go/no go process, 25% are considering implementing one in the future.
For small and medium A&E firms, proposal win rates decreased by nearly two percent from last year while large firms had an increase of almost two and a half percent. On the contrary, firms of all sizes saw an increase to their capture rate with a cumulative increase of three and half percent. These differences between win rate and capture rate can be attributed to the type of work firms are pursuing and the use of a more strategic go/no go process.
Deltek Clarity on A&E Marketing Techniques
Respondents to the 42nd Deltek A&E Clarity study indicated that they predict traditional marketing techniques like in-person trade shows and exhibits, and public relations initiatives will see a sharp decline in utilization with a transition to more modern techniques. Specifically, firms stated they will increase the use of client-specific marketing, social media, thought leadership and content marketing as the core to their overall marketing strategy. This is not to say that trade shows will be abandoned, but these will likely become more virtual and/or hybrid versions which can reduce their benefit and importance to A&E firms. Overall, it’s encouraging that A&E firms want to adopt more modern marketing techniques, but their willingness to make significant investments into these changes has yet to be seen.
Deltek Clarity on the Future Outlook and Forecast of A&E Industry
Small firms expressed a bullish outlook when reporting on their revenue growth forecast while medium and large firms expected to experience gains in the coming years. When asked to look further out to nine years, respondents expected to see growth of five to six percent in most years indicating there is still some level of uncertainty in the market, but still being sanguine there will be an upward trend in the years to come. Generally, A&E firms are optimistic about the markets they serve and believe they will be able to increase their position within them.
Significant Deltek Clarity Business Development Findings
In summary, the 42nd Deltek A&E Clarity study found that firms are going to need to continue to rely on passive sources for new opportunities which will require nurturing existing client relationships to win more work from them and to gain referrals as well. Firms will also need to embrace business intelligence tools and strategic business development models and processes to remain competitive. Additionally, the pursuit process itself has changed and became more virtual and digitized. As a whole, A&E firms have recognized the need to revolutionize their business development strategies if they want to remain relevant and viable in the future.
Understanding the full business development findings of the 42nd Deltek A&E Clarity study truly requires comparing the results to one’s own firm. Make sure to download your free copy and use the Clarity Scorecard to benchmark your firm.