Finding and winning new clients has become a critical priority for professional services firms. Gone are the days when prospective clients had just a handful of law firms, accounting practices, management consultancies, architects, or engineers to choose from. Today, clients are spoilt for choice.
The number of firms has multiplied, competition is fierce, and the power lies firmly in the hands of buyers. Beaton has tracked this shift for more than two decades, noting the rise of client expectations and the abundance of choice in professional services. In our research, professional services clients now report five to 10 viable firms competing for their work, compared with just two or three in the early 2000s.
In this environment, firms must not only focus on client retention but also winning new ones. A strong prospecting strategy for both new and existing clients is essential for survival.
What is prospecting and why does it matter?
Prospecting new clients is the process of seeking out, identifying, and engaging potential clients with the aim of generating new business opportunities. The goal eventually is to move these targets (i.e. prospects) through a business development process until they become revenue-generating clients. With some effort, these clients can become long-term and highly valuable to your firm.
In professional services, prospecting extends beyond acquiring new business. It also involves protecting and expanding work with existing clients.
Research by DemandSage and FinancesOnline has found customer churn averages 10–25 per cent per year across all industries. Even if we apply the lower end of this standard to professional services, firms might need to renew at least one in ten clients annually simply to stand still on current earnings. Without an active prospecting program, the revenue pipelines erode quickly. On the other hand, with a clear strategic plan to prospect for new clients and manage key accounts, top firms can protect and even grow their client base.
“Too many professional services firms accept that they’re going to lose a chunk of clients every year, as if it’s inevitable. It isn’t,” says Paul Hugh-Jones, partner at Beaton.
“If you invest in feedback, in handling complaints, in bringing new ideas – you can keep far more of them.”
Furthermore, firms that prospect consistently report stronger year-on-year growth than those that rely solely on repeat business. In short: prospecting underpins both growth and sustainability.
Turning leads into loyal customers starts with prospecting clients effectively.
Prospecting for business development has real rewards
A 2022 survey by DCM Insights involving nearly 1,800 partners across professional and financial services identified five archetypes of business development behaviour: Expert, Confidant, Activator, Debater, and Realist. “Activators” were defined as those who proactively build and engage their networks to grow business and generate new leads. The research found Activators achieve up to 32 per cent higher revenue generation compared to other archetypes.
This data underscores a critical point: in professional services, technical expertise and trusted relationships are not enough on their own. You could be the best in the world at your technical capability – but without regular prospecting, you will be falling behind competitors. Firms that cultivate “Activator behaviours” by systematically prospecting new clients, expanding work with existing ones, and leveraging networks see measurably stronger growth.
Prospecting trends in professional services
Worryingly, prospecting activity is in decline. Beaton’s longitudinal research reveals that in 2013, 17 per cent of clients of built and natural environment consulting firms saw their advisors proactively prospecting. By 2024, that figure had dropped to just 9 per cent.
“Feedback from managing partners is that there has been a loss of BD skills and confidence since COVID, plus a concern that clients are too busy and don’t have time … so we shouldn’t bother them,” says Hugh-Jones.
Meanwhile, savvy competitors could be quietly seizing opportunities.
Prospecting best practices
Standing out in a crowded market
Winning new business requires more than just visibility; it demands differentiation. With professional services firms fragmenting and becoming increasingly multi-disciplinary, prospective clients have more choices than ever.
“Clients are bombarded with people saying the same things. The way you stand out is by showing them something that is tailored just for them and adds a fresh insight to address their issue ,” explains Hugh-Jones.
“Don’t prospect with a sales pitch. Clients don’t want to be ‘sold’ to. Prospect by bringing the client a valuable idea that is hyper-relevant to their business and could help them. That says, ‘I’ve thought about your business, and here’s something that is worth considering.’ That’s what gets attention, shows you care and starts a real conversation.”
Firms that excel at prospecting new clients do so by demonstrating unique value and proactively offering insights and solutions tailored to client needs. Market research plays a crucial role in this process. Knowing what potential clients are looking for, and how competitors are positioning themselves, gives firms the upper hand in crafting compelling prospecting strategies.
How to prospect without becoming annoying
It’s often the first question Beaton partner Paul Hugh-Jones is asked: “How often can I approach clients with valuable ideas without becoming annoying?”
“Whatever frequency you think is going to annoy clients, they’d like to hear more often than that,” is his first response.
Contrary to what these professionals may assume, it is unusual that you would prospect so much as to become annoying to a client. So long as your prospecting involves sharing a valuable idea, which can help the client be successful. The acid test is whether the client will find that half hour conversation was a valuable use of their time. If yes, they will be happy to repeat. If not, you may not get another meeting. However, to avoid risking the relationship your approach should be genuinely helpful and respectful of their time.
Hugh-Jones has these tips for starting valuable conversations with clients:
- Be front of mind: Stay visible to clients so they think of you first, but don’t overwhelm them.
- Share valuable ideas, not empty contact: Reach out with insights or suggestions relevant to the client’s business or needs. The content of the interaction is what makes it worthwhile. Asking for a coffee or catch up without sharing a valuable idea is not a valuable use of their time.
- Timing and frequency: A good rule of thumb is to reach out roughly every six weeks – enough to remain relevant but not so often it feels pushy.
- Use existing relationships: Start with clients or contacts where there’s already a connection, whether personal, professional, or through introductions.
- Frame the outreach properly: Instead of just asking for coffee, position it as: “I’ve been thinking about your strategy / issue / project and have an idea that might help. Can we discuss it over coffee or a short meeting?” This communicates value and respect for their time.
- Think long-term: Prospecting isn’t about immediate wins. It may take months or years of regular valuable conversations before you turn outreach into a work opportunity. The long game is about nurturing relationships, sharing insights, and building trust that may eventually lead to work.
Getting in front of a client so that you can share a conversation face-to-face is also invaluable for winning new work.
By talking to clients, you start understanding their priorities, challenges, and where you can add value – that’s the essence of prospecting. Even if you don’t win a client from prospecting, you gain insights from the conversations that help shape future opportunities.
Who is prospecting your clients? Competitor prospecting in action
One of the most overlooked threats to professional services firms is competitor prospecting. While many firms are scaling back their prospecting activity, some are using the opportunity to actively target your clients. Beaton Benchmarks has found as many as 28 per cent of clients reported being approached by another firm while still working with their current advisor.
The sectors most affected were:
- Law: 31% of corporate clients reported competitor approaches.
- Accounting: 25% of clients were actively targeted by rival firms.
- Consulting: 29% of clients said they had been “courted” by competitors in the last 12 months.
These figures demonstrate that while many firms reduce their outbound business development, others are doubling down. In short, your best clients may already be on a rival’s prospect list. If you are not keeping current clients happy and engaged, you may be leaving the door wide open for competitors to step in. The danger is clear: if your firm isn’t prospecting, someone else is.
The key question every leader should ask is: who is prospecting my clients – and how am I defending against it?
The role of market research in prospecting clients
Market research and competitor intelligence are crucial to informing your prospecting strategy.
Firms that monitor their competitors and understand what other firms are offering can offer a unique point of difference to win clients. They “cut through” the noise of other firms’ marketing and enjoy greater engagement with prospects.
Competitor monitoring helps prospecting in several ways, including:
- Identifying market trends: Competitor insights can help you stay updated with market trends and shifts in client preferences. Monitoring what your competitors are doing can reveal emerging opportunities and threats.
- Value proposition refinement: Knowing your competitors’ strengths and weaknesses helps you refine your firm’s value proposition. You can highlight what sets you apart and identify unique competitive advantages that make your pitch more compelling to new clients.
- Staying ahead of innovations: Competitors often introduce new services, or technologies. Keeping an eye on these innovations ensures that you are not left behind and can incorporate similar or better solutions into your offerings.
- Improving client retention: Understand why clients might choose competitors. By addressing gaps in your service or product offerings, you can enhance client satisfaction and loyalty.
- Negotiate better deals: Knowledge of how competitors’ clients perceive competitors’ value can be a powerful tool during negotiations. Being aware of what competitors are offering can help you negotiate better deals and offer more competitive pricing or added value.
- Defensive strategies: Identifying who is prospecting your clients enables proactive action. Firms that implement “ring-fencing” account strategies a reduction in client churn
Jon Huxley, Beaton partner, explains what prospecting is, what is isn’t and why it’s important.
Building a winning prospecting strategy
A successful prospecting strategy balances three imperatives:
- Prospecting new clients – essential for growth, given rising client churn.
- Prospecting existing clients – the most cost-effective way to expand revenue.
- Defending against competitor prospecting – protecting key accounts under attack.
The data is unambiguous: firms that actively prospect across these three fronts outperform their peers. Beaton’s analysis of top-performing firms shows that those with structured prospecting strategies grow faster than the industry average.
Market intelligence for effective prospecting
Beaton Benchmarks is the biggest competitor analysis research in professional services across Australia and New Zealand. It collects client feedback on hundreds of firms from tens of thousands of clients every year. We collect this feedback across a range of metrics including brand, price, service, the likelihood prospects would consider using your firm, and so on.
This research offers firms the intelligence they need to optimise their prospecting efforts. Our services help professional services firms:
- Measure competitor prospecting activity: Learn how often competitors are approaching your clients.
- Identify gaps in client engagement: Understand if your firm is doing enough to maintain client relationships.
- Enhance prospecting efforts: Use insights to improve both new and existing client outreach.
- Benchmark performance: Compare how your firm stacks up against industry peers.
This market intelligence transforms prospecting from guesswork into a measurable, strategic advantage. By leveraging Beaton’s data, firms can refine their strategies, protect their most valuable clients, and gain a competitive advantage in winning new business.
Don’t prospect with a sales pitch. Clients don’t want to be 'sold' to. Prospect by bringing the client a valuable idea that is hyper-relevant to their business and could help them.
Upskilling your team in valuable conversations
To make prospecting a true competitive advantage for your firm, Beaton offers valuable ideas business development workshops designed to transform how professionals approach client engagement. These hands-on, action-oriented sessions work on real client opportunities, guide teams away from passive relationship management and into proactive, client-focused business conversations. Drawing on our 20-plus years of research, participants learn how to deliver fresh, relevant ideas that spark meaningful conversations with both clients and prospects.
What sets this training apart is its focus on what clients actually want. Too often, business development fails because professionals lack confidence or fear appearing pushy. Beaton tackles this challenge head-on, providing a practical, insight-driven framework grounded in real client feedback and scenario-based exercises. By the end of the workshop, teams leave with greater confidence, sharper prospecting skills, and a clear approach to engaging clients around their business needs – not just the firm’s services. Each attendee develops a valuable idea to share with their client, and commits to meet with their client to discuss it.
“Prospecting is where most firms look the same. The ones that win are the ones who can differentiate through insight, not just credentials,” advises Hugh-Jones.
“You’re showing effort, showing expertise and experience relevant to their needs, and expecting that you’re going to have several of these conversations. Eventually, it is likely to lead to some work.”
Conclusion
Firms that thrive in today’s hyper-competitive professional services market are those that make prospecting a core part of their business development strategy. By leveraging research, client feedback, and competitor intelligence, professional services firms can ensure they are not only winning new clients but also retaining and deepening relationships with existing ones.
If you find yourself asking, “Who is prospecting my clients?” the answer will undoubtedly include your competitors. The only way to stay ahead of those competitors is to be strategic and proactive in your approaches to clients. By doing so, your firm can differentiate itself, protect key accounts, and achieve sustainable growth in a crowded professional services landscape.
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