One key takeaway has become obvious in the world of Managed Service Providers (MSPs): Stop selling the same as everyone else, and specialize.
Over the years, the managed services industry has morphed from a niche market into a common business model. In our digital era, armed with only a laptop, an increasing number of people are diving into this sector, offering IT support and managed services to a wide range of businesses.
This transformation has led to a shift in the market landscape – once characterised by high margins and a limited pool of service providers, it’s now becoming densely populated and fiercely competitive.
In our role at LeftLeads, we are privileged to have insights into the strategies and performance of more than 50 MSPs. It’s a vantage point that gives us a unique perspective on the MSP industry. Of course, we confidently hold our clients’ strategies, but a broader pattern has emerged that we can share.
There’s a clear differentiator that sets the most successful MSPs apart from their peers.
The secret sauce? Specialization. It’s as simple and as complex as that.
Specialization could mean focusing on a particular technical solution or industry vertical. Interestingly, we have noticed a significant trend among our clients. Those who have opted to limit their focus and concentrate on specific niches consistently outperform those with a more generalised approach.
On the surface, saying no to potential customers may appear counterintuitive. After all, wouldn’t a larger customer base equate to higher revenues? However, in the reality of the MSP world, specializing and occasionally turning away prospective clients who fall outside that area of focus provides a strong competitive edge. This deliberate approach helps companies avoid the pitfalls of overextending their resources and the dilution of their expertise.
It is the quality, not the quantity, that matters most. Being recognised as the ‘best in class’ in a specific domain is a surefire way to distinguish yourself from the competition. By excelling in your chosen niche, your company can not only stand out but also deliver top-tier service that enhances your reputation, builds customer loyalty, and, ultimately, drives a healthier return on investment from your digital marketing efforts.