New research from the Society for Marketing Professional Services Foundation (SMPS Foundation) finds that average AEC firm hit rate—measured most commonly as the total number of proposals submitted to the total number of projects won—falls within the 37-44% range, depending on the discipline. Engineering firms have the highest average hit rate, at 44.2%. Construction firms have the lowest average hit rate, at 37.9%.
The 22-page report, Measuring for Success: A Look at Hit Rates & Other KPIs in the A/E/C Industries, evaluates the tools and processes that AEC firms use to track marketing success. The findings and analysis are based on a survey of 303 U.S.-based AEC firms conducted by the SMPS Foundation in conjunction with the Southern Illinois University Edwardsville Master of Marketing Research program.
“While there are many variables in tracking hit rates throughout AEC industries, there is a benefit to having a metric for evaluating a firm’s progress,” wrote the report’s authors. “The hit rate provides a baseline over time for firms to improve their success rate and should be used in conjunction with other key performance indicators such as profitability, market trends, and backlog.”
The report addresses a variety of topics, including:
• Methods and metrics AEC firms utilize to track their success of winning projects
• How firms use the hit rate metric to improve future performance
• Alternative key performance indicators
• Effectiveness of hit rate and other KPIs
• Barriers to developing a benchmarking standard for AEC firms
• It concludes with takeaways and action steps for AEC firms.
SMPS members receive a complimentary download of the report once they log on to smps.org.
Nonmembers may download the report with a donation of $24.95 until January 31, 2017.
Source: SMPS Foundation
Related Stories
Building Team | May 3, 2016
Piazza in San Francisco will feature a 92-foot stainless steel statue
Made of 2,500 seamlessly-welded panels, Venus will be the centerpiece of a new public piazza containing other works of art.
Building Team | Apr 6, 2016
Evaluating the value proposition of project vendors
CBRE Healthcare's Daniel Waters has a few pointers for Request for Proposal (RFP) writers and Project Managers when it comes to handling project vendors, including clearly defining performance expectations.
Building Team | Feb 25, 2016
Long-time BD+C editor Gordon Wright, 1939-2016
Gordon Wright, whose career at BD+C spanned 32 years, passed away on February 15, at the age of 76.
Building Team | Feb 10, 2016
DBIA disputes study claiming design-build projects often delivered on time, over budget
Says study did not account for owner-initiated scope changes.
Building Team | Jan 7, 2016
4 reasons the C-suite should care about design-led construction
Lou Astorino shares four examples how a unified approach can directly help C-suite leaders achieve their organizational goals.
Sponsored | Building Team | Dec 16, 2015
How to fix 3 common mistakes AEC teams make in project interviews
In a LinkedIn post, Scott Johnson, business writing specialist at Johnson Training Group, highlights three common missteps that AEC firms make during project interviews. His insights are based on more than 90 interviews conducted with members of various selection panels.
Sponsored | Building Team | Dec 7, 2015
Why employee advocacy is key to social media success
Employee advocacy is key to boosting social media engagement, and employee advocacy is about more than just the promotion of a firm’s brand.
Sponsored | Building Team | Nov 30, 2015
5 ways to bring data into marketing and business development
Here are five ways to use data to enhance the client acquisition process
Cultural Facilities | Nov 23, 2015
BIG plans for Pittsburgh: Bjarke Ingels’ Lower Hill District master plan evokes hilly topography
Paths will be carved to create a dialogue between Pittsburgh’s urbanscape and its hilly surroundings.
Sponsored | Building Team | Nov 17, 2015
The benefits of selling your firm to employees
One business advisor recommends professional services businesses to develop a group of employees who are willing and able to buy the business
