The Age of Disruption: Professional Service Businesses Reconsider Service Delivery Models

Whether you look at Accounting, Investment Advice or Recruitment, technology is being used to disrupt traditional methods of service delivery, lowing costs, providing convenience and accessibility for the end consumer.

After specializing for 17 years in Financial Services and having recently joining the Ivy Exec Recruitment team, I reflect on the questions that were being asked by Advisory businesses over the many years, “what should I do in the face of unprecedented changes to technology and new entrants to the market?” Lessons can be learned from businesses in industries where embracing the benefits of constant change is now the norm.

Technology-Driven Service Delivery Innovation

During the last 10 years the speed of technology change and IT business application has been fast. Companies such as Vanguard’s Personal Advisor Services in Financial Services and Ivy Exec in Recruitment are all examples of technology-driven innovation in their respective industries. These organizations share in common their ability to develop technology-driven innovation whilst offering both a self-service option and a personal service option. These options have helped improve the experience for their users, lowing costs while providing clients with choice on how they want to be serviced. Ivy Exec has embraced a hybrid ‘machine and human model’ offering direct listings for employers and in house specialized recruitment for high quality executive positions.

As highlighted by Sebastian Dovey, Co-Founder of Scorpio partnership, “As technology embeds itself ever deeper into our world, those who get rich quick and prosper will be those who excel at turning technology to their advantage. What should shock us are the wealth managers who think an either/or choice of robot vs. human will suffice for a generation brought up on augmentation, open-access and peer-collaboration.”

A general observation is that different professional services have experienced different levels of impacts from technology-driven innovation depending on the industry. It is however important to adapt and improve as increasing consumer expectations and online consumption of services become the new norm.

4 Lessons from those who innovate

1. Know what to stop doing to make room for what you should do

Knowing your value proposition will enable the business to nurture and grow the ideal (usually your most profitable) client. If clients are unwilling or unable to pay for your service/s, options such as a self-service online solution can be a positive alternative to losing a relationship where the client may change to be your ideal client in the future.

2. Embrace a hybrid service approach

Integrating direct self-service technology does not mean the end of the human interaction with clients. Software can be created to direct clients to a professional for assistance at trigger points in the interaction. Creating a wealth of knowledge, networks, and tools via a subscription based site can assist in capturing the self-serve market while providing an opportunity to promote extra services such as in person professional consultations.

3. Understand segmentation, add value and update the ways you communicate

Traditional approaches to segmenting your client base have been useful so it is understood which segment revenue is coming from. It is also important to understand how the different segments may wish to interact with your business. If your most profitable segment is your face to face client, making available the ability to make online bookings for example for web interviews may be more convenient. Creating additional value adds like educational blogs tailored to the most valuable segment can be an effective way to build credibility and in the age of ‘share’ buttons create online word of mouth.

4. Treat your clients as members of a community

Client retention in the face of constant bombardment of advertising and competitor offers is a challenge most businesses face. Clients are less likely to leave organizations when there is the feeling of belonging. Tailoring messages to different demographics assist in making communications more relevant to the recipient. Exclusive online memberships to websites that are content rich can reinforce the professional value and brand that an organization provides to its clients.