The recent Slator 2021 findings and insights from the LSP sector is interesting reading.
Thanks to Monica Jamieson for these insights.
The index was launched early this month featuring more than 175 LSP's ranked in order of revenues.
Filters such as:
- Ownership Type
It shows good reading from the outset as the combined US Dollar revenue of 2020 LSP companies grew 11.5% in 2020 to USD 7.7.bn
An attract rise, considering the challenges posed by the global pandemic in 2020.
However, a lot of this growth snapshot is based upon more M&A activity, and also a lot of LSPs may have also chosen not to disclose figures last year.
Broken into four segments we can define the below results.
- Super Agencies - up 15.5 in revenue with 0% growth (5 LSPs)
- Leaders - up 7.4% in revenue with negative growth across 23.1% (39 LSPs)
- Challengers - up 8.1% in revenue with negative growth of 29.6% (44 LSPs)
- Boutiques - up 9.3% in revenue with negative growth of 28.1% (89 LSPs)
So in revenue terms, not a bad return for a tough economic year. But I see a great opportunity here to turn the negative growth into a positive, this year and in years to come.
If we deep-dive into the figures and data, we can see that the small boutiques and challengers have contributed to most of these figures and stats above.
Now if the CMO of a Super Agency like Lionbridge tells us that the pandemic opened up a digital marketing gap between LSP & clients and prospects, then we should look up and listen. There is a clear gap to fill in here, and growth is what we all want to achieve as a business when tough times hit.
He went onto explain that the language services industry has fallen behind the marketing and digital sophistication of its clients.
Quote "We are, as an industry, the cobbler whose child has bad shoes"
He also pointed out 4 key reasons behind this deficit.
An LSPs digital presence is likely much weaker than the clients
You can change that though, this is ok. Social Selling Transformation is key.
Marketing sophistication is also weaker
We know this because traditional marketing does not work anymore. It needs to be owned.
An LSP spends a much lower percentage of revenue than a client would
That we know also and we can also change that with point one above.
The industry is generally not in sync with today's B2B omnichannel buying journey
The buyer's journey has constantly changed and each year the gap gets wider as we move to a more digital landscape for B2B interactions. But as above we can change all of that.
So four key points raised amongst many other fantastic points made by Jamie at Lionbridge. The buyer wants to see content that creates insight, that walks them through the buying funnel. How you get in front of them, interact, engage and drive that engagement can all be done by YOU. And your team.
All on SOCIAL and all with INFLUENCE and a SHARE OF VOICE.
WHAT DO WE KNOW NOW....
The old methods before are not as effective anymore. COVID and WFH have moved the goalposts.
- No meetings
- No one in the office
- No face to face
- No exhibitions or conferences
- No email replies as circumstances change
You can't just keep picking up the phone and hoping they answer. They are WFH and busy.
Emotions have changed, people have changed and buyer motions have changed as per the last Gartner webinar I watched with anticipation a couple of weeks back.
Every quarter the landscape changes to a more digital approach, a more user-friendly approach.
They are interacting over digital platforms looking for YOU and looking for INSIGHT.
So let's go back a bit and look at those boutiques and challenger LSPs.
They may not have the budgets to do the power marketing like others. No need.
They may not have the buying power to cover M&A activity. No need.
But what they do have is people. People are the core of any business right now.
Our people are what we buy into, it's whom we develop conversations with. Not a brand or a powerhouse company. The PEOPLE.
Imagine all of your people in your niche, boutique or challenger agency all pulling together on social and creating beautiful engaging content, growing a following, having conversations and building a pipeline by prospecting with others of influence and insight.
You do not have to imagine. Our clients are doing it. It works.
The noisy SUPER AGENCIES are now quiet, and your volume is turned up.
I speak to many businesses and employees right now and they know something is not right, they are looking for answers. They are doing pockets of X and Y and are seeing some small results and the odd lead or two.
This is not good enough for a business to grow and thrive and in today's landscape.
You need to take a hold of each other and power towards digital dominance.
You share of voice in your sector. Why would you allow your competition to do it? Your employees are asking for answers, new recruits want to work for the social savvy company.
If you want to get a grip of true digital transformation in social selling then start by asking the questions of your people, asking them if we want to change and then change.
The LSP sector is a billion-dollar industry with huge potential for growth.
This is no longer about what is not working and this works a little bit.
This is about you, your team and your business future. Empowering a change.
Growth, recruitment, pipeline, social activity, flow of content, commercial conversations.
Make the start. Ask me anything. Happy to jump on a call.
Have a great day.
“Think about the irony […] when we’re trying to work with clients to build their most sophisticated customer experiences and help them drive their multi-market business expansion efforts. Yet we are, as an industry, the cobbler whose child has bad shoes,” said the Lionbridge CMO, paraphrasing a popular trope.