We help ambitious service companies accelerate growth and transformation by focussing on what matters, not vanity metrics.

Compound is a digital strategy consultancy dedicated to helping technical service-based businesses unlock simple pathways to powerful transformation and profitable growth. We do this through evidence-based lean strategy development drawing from insights at the intersection of business strategy, digital technology and human psychology.

Our clients are engaged in the delivery of complex solutions and services within technical industries. Their customers have an average lifetime value in excess of £25,000.  We can work independently or collaborate with internal and external participants such as agencies and contractors. We typically report to executive officers or directors.

Our work unlocks value across our clients’ entire business, not just marketing, although this is an important area of digital.

digital transformation from compound

Fig. 1 – Digitisation beyond marketing

We are based in Loughborough UK, with clients and partners in the UK, Europe and beyond.

Problems we Solve

Lack of time. We help our clients save time by reducing their investment in low-impact tactics in favour of high-impact ones. We further increase efficiency via simplification of strategy, which is achieved through comprehensive analysis and our lean strategy development process.

Sub-optimal decision making. We optimise the decision making process with meaningful insights that span the complete customer journey. We eliminate risk and waste by identifying hype and vanity metrics that justify ineffective action. We eliminate subjectivity and ethical conflicts of interest from digital performance appraisal.

Strategy ownership gap. Many business leaders feel overwhelmed by the pace of change. Their needs are not being met by current development offerings, meaning they cannot carry the digital leadership mantle, giving rise to increased business risk and sub-optimal performance. We help them understand the drivers of change, unchanging principles of digital and practical skills required. We equip them to lead with clarity, confidence and capability to drive transformation and growth.

The knowledge differential. We help leaders translate strategic business goals into discrete, measurable objectives in the digital layer: Bridging the knowledge, language and data void that often exists between leaders and technicians. We prioritise leadership understanding throughout our engagement.

importance of understanding to digital transformation

Fig. 2 The Criticality of Understanding

 

Disunity and distrust. Many businesses are like premiership football clubs and fire their manager (digital partners), when in fact it is often the culture and engagement model that is broken. We help build long-term partnerships that lead to hard-to-replicate competitive advantages.

Insights
  • Digital leadership correlates strongly with increased revenues in a B2B context. Source: McKinsey & Company
  • Customers are over-solicited, and inbound marketing continues to increase in relative effectiveness. Source: Peppers and Rogers (2016)
  • A B2B customer will regularly use six different interaction channels throughout the decision journey and almost 65 percent will come away from it frustrated by inconsistent experiences. Source: McKinsey & Company
  • By 2020, customers will manage 85% of their relationship with the enterprise without interacting with a human. Source: Gartner (2011)
  • A key driver of digitisation is the empowered customer (Tiefenbacher et al., 2016) as buyers have access to more data on purchases, eliminating the knowledge differential between vendor and customer. Almost 60% of the buyer’s journey is completed before the buyer talks to the vendor. Source: CEB and Google (2011)

Companies that adapt to empowered customers and nurture unqualified leads are able to generate 50 per cent more sales at a cost one-third less than non-nurturing companies. Source: For-rester.

Client Outcomes

Transformation

Our clients establish digital leadership by identifying opportunities to create customer value in the digital layer along their customers’ journey.

Growth

Our clients develop blue-ocean competitive advantage that leads to increased inbound lead volumes, automated lead nurturing and qualification.

Efficiency

Through pragmatic analysis, clients remove and reduce inefficiencies and focus on the most performant channels and tactics to enable continuous and profitable growth with reduced client acquisition costs.

Measurable Deliverables
  • Increased customer acquisition volumes
  • Decreased customer acquisition costs
  • Increased customer lifetime value
  • Increased efficiency
  • Increased digital innovation and leadership
  • Our Services

Consulting

  • Research & Data Analysis
  • Lean Digital Strategy Creation
  • Digital Transformation Leadership

Education

  • Executive Digital Business Transformation Coaching
  • Digital Strategy Workshops
Seven Values that Centre Us
  • Transparency is best, even if it costs.
  • Find the evidence.
  • Leave things better.
  • Maximise skill transfer.
  • Always learn.
  • Simplify and reduce.
  • Think long-term.
Our Proprietary Tools & Frameworks
  • FiveD digital strategy framework.
  • Lean digital strategy development process.
  • 3Metric analysis framework.
  • Blue ocean digital opportunity assessment.
Our Six-Step Integrated Process

We can and do offer individual services, but we find that the best long term partnerships are built on the integration of all of our capabilities, delivered in one simple and repeatable process.  This is the six step DIGITALTHATMATTERS ® process:

Application & Discovery > Audit > Baseline > Lean Strategy Development > Strategic Review > Analysis & Education

Application & Discovery – We like to develop long term relationships with our clients so we have implemented a thorough application and discovery process which enables us and our client to jointly establish shared values and goals for a long-term collaboration. If we progress beyond this stage, we conduct a digital business audit.

Audit – If we jointly agree that the partnership will be mutually beneficial, we will gather and analyse data to establish the current performance level across your digital portfolio, identifying global averages and channel averages.  What we find in this audit will form the plumb-line for our measures of success.  We formally record and agree on this, and call it our baseline.

Baseline – Our view of digital strategy is that too many people make it more complicated than it ought to be.  There are a thousand or more metrics a business could follow, but only a few that really matter.  We have a channel by channel and global average for Cost Per Lead, Cost Per Acquisition and Customer Lifetime Value – the Holy trinity of digital metrics.  When we begin to work with you, these metrics form the basis of our performance measurement.

Lean Strategy Development – Following establishment of the baseline, we will move into a phase of lean strategy development.  Rather than using resource to create large, complicated and continually out-dated strategy documents, we will instead launch a series of growth and transformation experiments and measure their impact on the metrics we track.  We will scale tactics that prove effective and change/stop those which do not. No theory and no estimates, just scientific measurement.  We believe that the best strategy is simply scaling that which is known to be working already.

Strategic Review – We review the data from our lean strategy development phases and advise our client on the best next steps to scale the impact and value of the experiments in regular strategic review workshops.  The strategic review provides a context for a mixture of analytical and creative collaboration.  From this we plan next steps and make decisions on which current experiments to stop, change, increase and which experiments to launch next.

Education & Analysis – Throughout the entire process, we aim to transfer knowledge to our client to empower them to conduct and own the processes that contribute to their success.  We never want our clients to need us, we want them to want us!  We find that continually sharing everything we know helps to keep us at the leading edge of digital consulting methodologies and that is good for everyone.

DIGITALTHATMATTERS ® Pillars of Success

Think Commercially: The value of an intervention must be expressible in financial terms.

Act Authentically: There is nothing more powerful than authentic connection.

Integrate Everything: Only joined up thinking and execution delivers a joined up experience.

Give Generously: An intervention should benefit stakeholders or it should not happen.

Lead Creatively: Leaders seek new paths to add value to stakeholders, but new is not always best.

Manage Scientifically: Scientific measurement must be the bedrock of decisions. Never assume.

Compound is a digital strategy consultancy dedicated to helping technical service-based businesses unlock simple pathways to powerful transformation and profitable growth. We do this through evidence-based lean strategy development drawing from insights at the intersection of business strategy, digital technology and human psychology.

Our clients are engaged in the delivery of complex solutions and services within technical industries. Their customers have an average lifetime value in excess of £25,000.  We can work independently or collaborate with internal and external participants such as agencies and contractors. We typically report to executive officers or directors.

Our work unlocks value across our clients’ entire business, not just marketing, although this is an important area of digital.

digital transformation from compound

Fig. 1 – Digitisation beyond marketing

We are based in Loughborough UK, with clients and partners in the UK, Europe and beyond.

Problems we Solve

Lack of time. We help our clients save time by reducing their investment in low-impact tactics in favour of high-impact ones. We further increase efficiency via simplification of strategy, which is achieved through comprehensive analysis and our lean strategy development process.

Sub-optimal decision making. We optimise the decision making process with meaningful insights that span the complete customer journey. We eliminate risk and waste by identifying hype and vanity metrics that justify ineffective action. We eliminate subjectivity and ethical conflicts of interest from digital performance appraisal.

Strategy ownership gap. Many business leaders feel overwhelmed by the pace of change. Their needs are not being met by current development offerings, meaning they cannot carry the digital leadership mantle, giving rise to increased business risk and sub-optimal performance. We help them understand the drivers of change, unchanging principles of digital and practical skills required. We equip them to lead with clarity, confidence and capability to drive transformation and growth.

The knowledge differential. We help leaders translate strategic business goals into discrete, measurable objectives in the digital layer: Bridging the knowledge, language and data void that often exists between leaders and technicians. We prioritise leadership understanding throughout our engagement.

importance of understanding to digital transformation

Fig. 2 The Criticality of Understanding

 

Disunity and distrust. Many businesses are like premiership football clubs and fire their manager (digital partners), when in fact it is often the culture and engagement model that is broken. We help build long-term partnerships that lead to hard-to-replicate competitive advantages.

Insights

  • Digital leadership correlates strongly with increased revenues in a B2B context. Source: McKinsey & Company
  • Customers are over-solicited, and inbound marketing continues to increase in relative effectiveness. Source: Peppers and Rogers (2016)
  • A B2B customer will regularly use six different interaction channels throughout the decision journey and almost 65 percent will come away from it frustrated by inconsistent experiences. Source: McKinsey & Company
  • By 2020, customers will manage 85% of their relationship with the enterprise without interacting with a human. Source: Gartner (2011)
  • A key driver of digitisation is the empowered customer (Tiefenbacher et al., 2016) as buyers have access to more data on purchases, eliminating the knowledge differential between vendor and customer. Almost 60% of the buyer’s journey is completed before the buyer talks to the vendor. Source: CEB and Google (2011)

Companies that adapt to empowered customers and nurture unqualified leads are able to generate 50 per cent more sales at a cost one-third less than non-nurturing companies. Source: For-rester.

Client Outcomes

Transformation

Our clients establish digital leadership by identifying opportunities to create customer value in the digital layer along their customers’ journey.

Growth

Our clients develop blue-ocean competitive advantage that leads to increased inbound lead volumes, automated lead nurturing and qualification.

Efficiency

Through pragmatic analysis, clients remove and reduce inefficiencies and focus on the most performant channels and tactics to enable continuous and profitable growth with reduced client acquisition costs.

Measurable Deliverables

  • Increased customer acquisition volumes
  • Decreased customer acquisition costs
  • Increased customer lifetime value
  • Increased efficiency
  • Increased digital innovation and leadership
  • Our Services

Consulting

  • Research & Data Analysis
  • Lean Digital Strategy Creation
  • Digital Transformation Leadership

Education

  • Executive Digital Business Transformation Coaching
  • Digital Strategy Workshops

Seven Values that Centre Us

  • Transparency is best, even if it costs.
  • Find the evidence.
  • Leave things better.
  • Maximise skill transfer.
  • Always learn.
  • Simplify and reduce.
  • Think long-term.

Our Proprietary Tools & Frameworks

  • FiveD digital strategy framework.
  • Lean digital strategy development process.
  • 3Metric analysis framework.
  • Blue ocean digital opportunity assessment.

Our Six-Step Integrated Process

We can and do offer individual services, but we find that the best long term partnerships are built on the integration of all of our capabilities, delivered in one simple and repeatable process.  This is the six step DIGITALTHATMATTERS ® process:

Application & Discovery – We like to develop long term relationships with our clients so we have implemented a thorough application and discovery process which enables us and our client to jointly establish shared values and goals for a long-term collaboration. If we progress beyond this stage, we conduct a digital business audit.

Audit – If we jointly agree that the partnership will be mutually beneficial, we will gather and analyse data to establish the current performance level across your digital portfolio, identifying global averages and channel averages.  What we find in this audit will form the plumb-line for our measures of success.  We formally record and agree on this, and call it our baseline.

Baseline – Our view of digital strategy is that too many people make it more complicated than it ought to be.  There are a thousand or more metrics a business could follow, but only a few that really matter.  We have a channel by channel and global average for Cost Per Lead, Cost Per Acquisition and Customer Lifetime Value – the Holy trinity of digital metrics.  When we begin to work with you, these metrics form the basis of our performance measurement.

Lean Strategy Development – Following establishment of the baseline, we will move into a phase of lean strategy development.  Rather than using resource to create large, complicated and continually out-dated strategy documents, we will instead launch a series of growth and transformation experiments and measure their impact on the metrics we track.  We will scale tactics that prove effective and change/stop those which do not. No theory and no estimates, just scientific measurement.  We believe that the best strategy is simply scaling that which is known to be working already.

Strategic Review – We review the data from our lean strategy development phases and advise our client on the best next steps to scale the impact and value of the experiments in regular strategic review workshops.  The strategic review provides a context for a mixture of analytical and creative collaboration.  From this we plan next steps and make decisions on which current experiments to stop, change, increase and which experiments to launch next.

Education & Analysis – Throughout the entire process, we aim to transfer knowledge to our client to empower them to conduct and own the processes that contribute to their success.  We never want our clients to need us, we want them to want us!  We find that continually sharing everything we know helps to keep us at the leading edge of digital consulting methodologies and that is good for everyone.

DIGITALTHATMATTERS ® Pillars of Success

Think Commercially: The value of an intervention must be expressible in financial terms.

Act Authentically: There is nothing more powerful than authentic connection.

Integrate Everything: Only joined up thinking and execution delivers a joined up experience.

Give Generously: An intervention should benefit stakeholders or it should not happen.

Lead Creatively: Leaders seek new paths to add value to stakeholders, but new is not always best.

Manage Scientifically: Scientific measurement must be the bedrock of decisions. Never assume.