5 Key Lessons Agencies Can Learn from Consultancies
At Wow, we’ve had the privilege of working with thousands of agencies and consultancies, helping them grow into more profitable, sustainable businesses. Along the way, we couldn’t help but notice a few key differences between the two that allow consultancies to grow faster, improve profit and unlock longer-term projects.
In fact, consultancies consistently outperform agencies in several areas. But it doesn’t have to be this way. By applying a few key strategies, agencies can unlock their potential and achieve the same level of business success. Below are five key lessons that agencies can take from consultancies to boost their performance.
1. Productisation: Simplifying to maximise profits
One of the major advantages that consultancies have over agencies is their approach to productisation. Consultancies are masters at packaging their services up in a way that’s easy for clients to understand and easy for their teams to deliver efficiently, time and time again. This helps streamline operations, increase efficiency and boost profits.
So, what is productisation? It’s the process of taking your services and turning them into clearly defined products with repeatable methodologies. When consultancies deliver similar outcomes over and over again, they become more efficient at it and can charge more as their expertise grows. The key here? The clients pay for outcomes, not time.
Agencies can adopt this model too. For example, if your agency specialises in building websites, rather than charging by the hour, you could start to think about developing a standard website package with specific deliverables and clear outcomes. This kind of service is easier for clients to buy and for your team to deliver efficiently.
Over time, as you refine your processes and your team becomes more skilled, you can raise your prices without increasing the time spent on delivery. Productisation shifts the focus from selling time to delivering value.
Key takeaway: By productising your services, you build consistency in delivery, improve efficiency, and can command higher fees - all while spending less time on delivery. Win-win for you and your clients.
2. Demonstrate ROI: Show clients the impact
Consultancies shine when it comes to demonstrating Return on Investment (ROI). They understand that clients need to see clear, measurable outcomes - and they design their services to deliver and showcase these results.
Agencies, on the other hand, tend to focus on the deliverables themselves - be it websites, branding, or social media content - without linking those deliverables to specific client outcomes. But by shifting your focus to ROI, you can start building a stronger case for your services.
Start by asking clients, ‘What does success look like to you?’ Get to the core of what they’re trying to achieve. If a client wants a new website for example, ask whether their goal is to increase sales, reduce bounce rates, or improve customer engagement. Once you know their goals, you can set clear metrics, track your progress and demonstrate how your work directly impacts their business.
By the end of the project, you’ll be able to demonstrate how your efforts led to measurable improvements, whether it’s a rise in leads, sales, or engagement. This not only strengthens your relationship with existing clients but gives you powerful case studies for attracting new ones.
Imagine being able to say, “We built a website for Client X that boosted their sales by 25% within six months.” That’s the kind of ROI-driven success story that will set your agency apart from the competition.
Key Takeaway: Focus on demonstrating clear ROI by understanding client goals, tracking metrics, and turning success into compelling case studies.
3. Niche down: Specialisation equals success
If there’s one lesson consultancies have mastered, it’s the power of niching. Data from our BenchPress reports shows that only 17% of agencies have a clearly defined niche, yet those that do, consistently outperform generalist agencies in both growth and profitability.
Why is this? Because having a niche positions you as an expert. Clients will pay more for specialised knowledge because they know you understand their unique challenges and can provide tailored solutions.
Consultancies often establish themselves as experts within a particular sector or service area, which gives them a competitive edge. This laser focus allows them to market themselves more effectively, build deeper client relationships, and charge premium prices.
Agencies sometimes resist niching because it feels limiting, but in reality, it can open more doors. Rather than being a jack of all trades, you become the go-to expert in your field. And clients who value expertise will gladly pay a premium for it.
Key Takeaway: Specialise in a niche to build authority, attract higher-value clients, and command higher fees. The more you focus, the faster you’ll grow.
4. Take a strategic approach: Shift from execution to advisory
Consultancies are known for taking a strategic view of their client's businesses, and this is a significant differentiator from agencies. While agencies often focus on delivering a specific project, consultancies look at the bigger picture and offer long-term business insights.
Agencies tend to be brief-driven: they’re asked to create something, and they deliver it. Consultancies, on the other hand, tend to create the brief. They work with clients to identify problems and figure out the best strategies to solve them. This proactive, advisory role makes consultancies invaluable to their clients.
Agencies can adopt this approach by asking more strategic questions when engaging with clients. Instead of accepting a brief as it is, ask about the client’s bigger picture. For example, if they want a new brand identity, explore how this fits into their long-term business objectives. Does it align with their growth strategy? Are there other areas of their business that need attention?
By shifting from an execution-focused approach to a more strategic one, you’ll position yourself as a trusted partner, leading to longer-term engagements and higher-value contracts.
Key Takeaway: Elevate your role by taking a strategic view of your clients’ businesses. Help shape their long-term success, and you’ll unlock more significant, long-term projects.
5. Plan and report: The power of discipline
One of the most critical lessons agencies can learn from consultancies is the importance of disciplined planning and reporting. Consultancies thrive on structured processes - annual planning, quarterly reviews, and monthly reporting all keep them on track and accountable.
Many agencies, by contrast, tend to be more reactive or get drawn into client work, which they prioritise over their own business needs. By implementing more structured planning and reporting processes, you’ll stay focused on your strategic objectives and make data-driven decisions.
A strong planning process should include setting clear goals, regularly reviewing progress, and using accurate data to adjust strategies. Agencies that track metrics like gross profit, utilisation rates, and client profitability every month are better positioned to make smart decisions and spot potential issues early.
Key Takeaway: Adopt a disciplined approach to planning and reporting. Set clear goals, track your progress with data, and use regular reviews to stay on course and make informed decisions.
Ready to make the transition?
The lessons agencies can learn from consultancies aren’t just theory - they’re practical strategies that can drive real results. By embracing productisation, niching, demonstrating ROI, taking a strategic approach, and implementing disciplined planning, your agency can boost performance and profitability.
We’re here to support you on your journey. We understand how agencies and consultancies work and know about the obstacles and challenges that the industry is up against right now. If you need help refining your strategic approach or growing profitably and sustainably, it’s important you get the best financial advice to help you take that next step. Let’s chat and see how we can help your agency thrive.
