Why MSPs should Target Verticals
Targeting verticals should be easy. One of our earliest challenges at CharTec was vertical marketing. We were only taking on essentially any client who we thought could pay their bills on time. We were needing a more focused approach. This was the path of least resistance, but it did have its drawbacks. Since then, we’ve learned the hard way that it pays off to choose a vertical to focus your efforts on and become an expert in that field. Quality over quantity.
Some of the highest-performing and fastest-growing MSPs are those that have developed a vertical specialty. Industries such as dentistry, accounting, or real estate are always popular. When you learn about an industry and the business challenges it faces, you open the doors to far greater potential than trying to be everything to everyone.
When you understand how businesses operate in and out and know how they make and lose money, you are better positioned to help them – and you – succeed. Let’s explore why focusing on one vertical is a good move.
Clients prefer specialists – and they’re willing to pay for them.
If several MSPs are vying for the business of a university and one has educational expertise, we don’t need to tell you who is most likely to land the deal. Clients prefer vertical specialists when possible. If you’re known for specializing in a vertical, you’ve already won half the battle before you even give a presentation.
By knowing the trends, lingo, and challenges of your clients’ industry as well as the tools and business applications they use, you’ll offer the kind of value that can command higher rates.
You can work far more efficiently.
When you are targeting a specific vertical, it is far easier to create a strategy before you start your discovery. You’ll know where to direct your efforts and which systems you need to focus on learning inside and out. You’ll know your prospect’s pain points before they do. And you won’t have to spend time learning new industries and tools with each new client you acquire.
Also, you’ll be able to identify the latent needs and technology challenges that can bring your clients greater efficiency and productivity. By sounding like an expert in their field, they will clearly see the value of your service.
You can get the most out of your networking efforts.
No one has time to go to every business networking event. When you’re targeting a specific vertical, it will be easier to find the right places to network. You’ll benefit doubly from attending conferences and other industry events within your vertical. You’ll have the opportunity to meet new prospects while deepening your knowledge of the industry and better positioning yourself as an expert in the field. You’ll also be able to strengthen your relationship with current clients.
Social Media will also be easier to comb through. You can join the Facebook groups that focus on your vertical. LinkedIn searches will become easier too, and Google Ads will be able to directly target the industry you want to reach. Vertical marketing will become easier if you narrow the scope of who you’re trying to attract.
You’ll find beneficial collaborations.
When you develop a deeper specialty, it can be helpful to seek vendors established across your clients who support the same industry. These vendors will become even more valuable when you form a strategic relationship with them. Having these partners will help you establish your expertise within the sector and develop collaborative support strategies for the clients you have in common.
Targeting verticals to make marketing is easier.
It’s far easier to market to a niche audience than the general public. As soon as you choose a niche, you need to shout it from the rooftops. Switch up your marketing plan right away so you can start targeting the type of clients you want.
Many vendors have marketing materials available for you to use, at no cost. They’ve done years of research, and have spent tens of thousands of dollars developing their campaigns. All you have to do is partner with them to gain access to all that material. It is truly a win/win for everyone.
Moreover, you can leverage your existing contacts to grow your business faster. Once you have a client or two within your vertical, you can ask for recommendations or set up a referral program that rewards them for referring you to their peers. That way, the clients will come to you.
Targeting verticals might be scary at first when you begin to make the transition to targeting a specific vertical, but many MSPs find that the pros far outweigh the cons.
As we wrap this blog up, you might want to ask, “Hey CharTec, what vertical do you focus on?” That’s easy: MSPs. We focus on teaching MSPs how to become better-run businesses; how to hire the right people; how to close deals, and how to increase their MRR. We’ve helped many MSPs grow. We can help you, too.
Targeting the right verticals is just one aspect of success for Managed Service Providers. If you’d like to learn more about how you can get the most from your sales, marketing, and operational efforts, contact us at membership@CharTec.net for expert guidance on all aspects related to MSP success. Targeting verticals as a MSP can be efficient and easy. CharTec trains MSPs like you to target verticals during your regular marketing activities and practicing vertical marketing.