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Are you a vendor or a trusted advisor with your key accounts? How to cross the relevancy threshold

In the professional services landscape, being viewed as “just another vendor” severely limits growth potential. Today’s clients have many service provider options and are actively seeking partners who offer solutions to their challenges and insights into opportunities. The most successful firms have mastered the transition from commodity service provider to trusted advisor—creating deeper relationships, commanding higher fees, and ensuring greater retention.

But what exactly separates vendors from trusted advisors, and how can your firm cross this critical relevancy threshold? I see this as a challenge for many professional services providers, and it’s easier said than done. This transformation doesn’t happen by accident—it requires a fundamental shift in approach and a well-thought-out strategy.

The Vendor vs. Trusted Advisor Spectrum

The key distinction is between competence and relevance. Vendors are technically competent—they deliver quality work on time and within budget. But trusted advisors go beyond competence to achieve relevance—they connect their expertise directly to the client’s most pressing business challenges and strategic objectives. They understand not just how to perform a service, but why that service matters in the client’s broader context.

Vendors focus on their own products and services, are selected primarily based on price, and have transactional relationships that make them easily replaceable. They typically interact with clients only when necessary and passively wait for RFPs rather than proactively engaging. Trusted advisors, by contrast, provide collaborative solutions to complex problems, lead with client-centric topics, and create connections that transcend the traditional sales pitch. They’re selected for their expertise and relationship value, making them virtually irreplaceable to the key accounts they serve.

Signs You’re Stuck in the Vendor Zone

Before addressing how to evolve, let’s recognize the warning signs that you’re being perceived as just another vendor:

When prospects or key accounts regularly ask for discounts or compare your rates to competitors, you’re likely seen as interchangeable. If you’re only brought in to execute predefined tasks rather than help shape strategy, you’re operating as a vendor. Vendors typically deal with operational staff, while trusted advisors have meaningful relationships with decision-makers. When communication happens only around deliverables and billing, or clients question the value of your services and haggle over hours, they’re treating you as a commodity.

The Relevancy Threshold: What It Takes to Cross Over

The shift from vendor to trusted advisor doesn’t happen overnight, but there is a definable “relevancy threshold” that separates these two states. Crossing this threshold requires mastering several key dimensions:

Trusted advisors possess insight beyond general expertise. They understand industry-specific challenges, their key account’s business model and competitive landscape, strategic objectives and pain points, and the personal goals facing decision-makers. While vendors wait for requests, trusted advisors anticipate needs by identifying emerging issues before clients do, sharing relevant insights without being asked, and suggesting improvements beyond the scope of work.

How you communicate dramatically influences how you’re perceived. Trusted advisors focus conversations on outcomes rather than activities, framework in terms of client goals, ask insightful questions, and communicate in the language of business impact. They build networks across multiple levels in the client organization and engage in both formal and informal settings. What truly separates trusted advisors is their ability to offer perspective by contextualizing issues within broader industry trends, sharing relevant experiences, and bringing new ideas that expand the client’s vision.

Making the Transition: A Practical Roadmap

Moving from vendor to trusted advisor status requires a systematic approach that goes beyond generic training programs that often fall short.

Not every relationship should be elevated to trusted advisor status. Focus on key accounts with significant growth potential and where you have genuine expertise that addresses their specific challenges. Prioritize accounts where you have access to decision-makers, an internal coach who can advocate for you, and real relationship momentum already established.  Organize cross functional “key account teams” around your most important accounts.

Without accountability, old habits quickly return. Implement coaching and reinforcement with your key account teams beyond initial training. Allocate time for strategic, non-billable relationship-building activities. Recognize behaviors that shift conversations from services to client challenges.

Leading firms have demonstrated the business case for collaboration. Equip partners to make cross-practice introductions that showcase broader capabilities. Develop skills for proactive client engagement rather than waiting for RFPs. Create systems for sharing client insights across practice areas.

The Payoff: Why Crossing the Relevancy Threshold Matters

Firms that commit to collaboration and successfully position themselves as trusted advisors realize significant benefits. Trusted advisors command fees 20-30% above market rates. Advisory relationships naturally lead to additional service opportunities. They achieve greater retention, critical in an environment of declining client loyalty. Competitive bidding processes often become formalities. And the work itself becomes more intellectually stimulating and professionally rewarding.

Conclusion: Conversations focusing on relevant client topics vs. “services”

As professional services firms face rising competition and declining loyalty, the ability to shift from vendor to trusted advisor has never been more important. This shift requires a commitment to collaboration and a focus on client-centric conversations.

Stepping into the client’s shoes means shifting conversations away from your services and toward topics that matter most to them. By leading with relevant topics about industry trends, pain points, and emerging opportunities, you demonstrate a deep understanding of their needs and position your firm as an invaluable resource.

It’s time to embrace the challenge. The question isn’t whether you can afford to make this transition from vendor to trusted advisor. In today’s competitive environment, the real question is: Can you afford not to?

Hazel Avenue Associates helps mid-size accounting and professional services firms develop growth strategies that transform client relationships and drive sustainable profitability. To learn more about crossing the relevancy threshold with your key accounts, contact us at andre.lerman@hazelave.com

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Why Does Growth Training at Professional Service Firms Fall Short?

Many professional service firms invest heavily in growth training for their professionals – partners, principals, senior managers, directors, and others. The goals are admirable – help professionals build deeper client relationships, identify new opportunities, have business development conversations, and ultimately win new work.

However, these growth training programs often fail to deliver real results and often times fail to fully equip professionals to achieve the desired outcomes. There are 4 main reasons:

  • The training is too generic and not tailored enough to the specific firm, its culture, and clients. Professionals sit through programs that feel disconnected rather than directly relevant.
  • There is insufficient coaching and reinforcement after the training workshops. Professionals are inspired in the classroom but left unsupported in the field.
  • Accountability is lacking. Without repercussions for inaction or rewards for success post-training, old habits can creep back in quickly.
  • Effective growth training focuses professionals on a live prospect or client scenario, directly relevant to each participant.  It sequences skill development over time though multiple sessions that are not all-day affairs and provides the opportunity to apply the training for tangible results.  Without real-world application, the training rarely leads to behavior change.

The key is customized, hands-on training paired with individualized in-person and virtual coaching over an extended period of time, focused on a current client or prospect. This leads to real behavior change, sustainable new growth skills, new business wins and a better return on investment on the training dollars spent by the firm.

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Training Partners to collaborate for growth

Andre Lerman

A commitment to collaboration across the firm and investment in sales training for partners can help professional services firms boost client relationships and revenue amid declining loyalty. The focus should be on proactive engagement, not just waiting for RFPs.

As professional services firms face declining loyalty and rising competition, they must take proactive steps to strengthen client relationships and uncover new business opportunities. According to a recent Harvard Business Review article (https://hbr.org/2023/11/what-todays-rainmakers-do-differently), collaboration between partners and sales training focused on collaboration are key strategies to develop more “Activators” within firms.

Collaboration is crucial for driving new revenue. Approaches like having partners cite collaborative examples in self-evaluations motivate cross-practice introductions to clients. This exposes clients to the firm’s broad capabilities. Law firm Baker McKenzie’s collaborative model increased North American revenue 40% in six years.

Sales training that includes collaboration skills also equips partners to succeed. Leading firms like McDermott Will & Emery have network management programs with a collaboration focus. Over five years, McDermott trained over 500 partners, helping grow revenue from $800 million to $1.8 billion. Training in collaboration provides the skills to proactively engage clients, share insights, and identify opportunities.

A commitment to collaboration across the firm and sales training focused on collaboration skills can help professional services firms boost client relationships and revenue amid declining loyalty. The focus should be on proactive engagement, not just waiting for RFPs.

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Stepping into the Client’s Shoes: Leading with Client-Centric Topics for Collaborative Solutions

In the professional services landscape, client engagement is the cornerstone of success. To thrive, firms must shift the conversation away from products and services and step into the shoes of their clients by focusing conversations on client-centric topics that matter most to them. This approach holds the key to building trust and fostering enduring client relationships.

Today’s clients and prospects have many service provider options and are seeking those providers who can offer solution to their challenges and insights into opportunities. Leading with relevant topics demonstrates a deep understanding of their needs and aspirations. Partners who initiate conversations about industry trends, pain points, and emerging opportunities show their commitment to adding genuine value.

I see this as a challenge for many professional services providers and it’s easier said than done, especially in the early stages of relationship development. Shifting the focus from what the firm offers to what the client truly needs demands a fundamental change in approach that requires developing a well thought out relationship plan that identifies the key problems and opportunities facing the client.  

By having engaging dialogue around client-centric topics, connections are created that transcend the traditional sales pitch. Partners become trusted advisors, positioning the firm as an invaluable resource. This approach also sets the stage for collaborative problem-solving, where clients actively engage in crafting tailored solutions.  The collaboration not only strengthens client relationships but also drives intentional and sustainable growth.

It’s time to embrace the challenge and step out of our shoes and into the shoes of the client through dialogue around client-centric topics.

Andre Lerman

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Intentional Growth and Growth Culture

What is “intentional growth”?

Why is that so important for a healthy growth culture for your firm?

Firms that have a strong growth culture generally grow at a faster rate than peer firms over time.

Firms that have a strong growth culture typically have professionals who work well together and have a high level of trust among all team members. 

But they also have a common focus around intentional growth using a common approach and methodology to organize teams around successfully attracting more profitable clients and by expanding existing clients in more profitable relationships.

The core to this approach revolves around understanding the needs of clients and prospects in each of the firm’s core target markets.  This “outside-in” approach requires professionals to be intellectually curious about problems and/or opportunities that these clients/prospects may be facing.  

These professionals then leverage topics and issues to engage their contacts to connect with them – discovering what matters to them.

Applying “third level listening” skills, they have a dialogue with stakeholders at clients/prospects using high gain questions to discover even more, increasing their relevance along the way.  

The goal is to get to the “white-board” bringing together decision makers from the client/prospect and subject matter experts from their firm to collaborate on possible solutions to the issues that are being faced.

The practice teams play a role in the process, as they help their professionals do through a disciplined targeting process to ensure that account teams are spending their time and effort where the payoff is high.  

And firm leadership reinforces this activity with tone at the top, providing guidance to practice team leaders, and prioritizing firm leaders to align resources with opportunities.

I have helped multiple firms create and implement a comprehensive intentional growth strategy seen the results at firms I have been associated with.  Each of these firms experiences sustainable growth rates in excess of peers, providing increased profits and opportunities for their professionals.

Andre Lerman