The managed services industry is growing rapidly, as more and more businesses adopt cloud computing, IoT, and data analytics to enhance their digital transformation. However, this also means that MSPs face fierce competition and price pressure from other service providers who offer similar solutions. How can MSPs stand out from the crowd and win more customers in this hypercompetitive market? Here are some strategies that leading MSPs are using to differentiate themselves from their competitors.
Differentiate by specialization.
One way to create a unique selling proposition for your MSP is to focus on a specific niche or vertical market. By specializing in a certain industry, such as healthcare, education, or manufacturing, you can demonstrate your expertise and understanding of the unique challenges and needs of your target customers. You can also tailor your services and solutions to meet the specific regulatory, security, and operational requirements of your niche. For example, if you specialize in healthcare, you can offer HIPAA-compliant cloud services, telehealth solutions, and medical device management.
By differentiating by specialization, you can avoid competing on price with other MSPs who offer generic services. You can also build trust and credibility with your prospects and customers, who will see you as a partner who understands their business goals and challenges.
Differentiate by value.
Another way to set yourself apart from your competitors is to focus on the value that you deliver to your customers, rather than the features or products that you offer. To do this, you need to understand the pain points and desired outcomes of your target customers and communicate how your services and solutions can help them achieve those outcomes. For example, instead of saying that you offer backup and disaster recovery services, you can say that you help your customers protect their data and ensure business continuity in case of any unforeseen events.
By differentiating by value, you can show your customers how your services and solutions can help them solve their problems, improve their performance, or achieve their goals. You can also justify your pricing based on the value that you provide, rather than the cost of the products or services that you deliver.
Differentiate by customer experience.
A third way to distinguish yourself from your competitors is to focus on the customer experience that you provide throughout the customer journey. This includes everything from marketing, sales, onboarding, service delivery, support, and retention. By providing a consistent, personalized, and proactive customer experience, you can build long-term relationships with your customers and increase their loyalty and satisfaction. For example, you can use automation tools to streamline your processes, provide timely updates and reports to your customers, offer self-service portals and knowledge bases for easy access to information and support, and solicit feedback and testimonials from your customers.
By differentiating by customer experience, you can create a competitive advantage that is hard to replicate by other MSPs. You can also increase your customer retention and referrals, which will boost your revenue and profitability.
Conclusion
The managed services industry is expected to grow significantly in the coming years, as more businesses adopt digital technologies to enhance their operations and competitiveness. However, this also means that MSPs will face more competition and price pressure from other service providers who offer similar solutions. To stand out from the crowd and win more customers in this hypercompetitive market, MSPs need to differentiate themselves from their competitors by focusing on specialization, value, or customer experience. By doing so, they can create a unique selling proposition that attracts their target customers and showcases their expertise, value proposition, and customer-centric approach.
MSPs need to differentiate themselves from their competitors by focusing on specialization, value, or customer experience.
