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What Can Bug Spray Tech MSP’s About Vertical Marketing?
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by
David Walter
Content by: David Walter from MTS
During my time consulting and working directly for IT providers, I’ve been shocked to discover that most are not targeting any vertical markets. Many seem unaware of the benefits. In this article, we will discuss why and how you should start targeting vertical markets ASAP.
An illustration from John Lee Dumas’s book The Common Path to Uncommon Success tells the story of a bug spray company that initially marketed their product by listing all the different types of bugs it could kill. Despite the long list, the product failed after its initial launch. Market research revealed that most consumers were only trying to kill one specific type of bug and were looking for a bug spray that targeted just that pest. With this new information, the company relaunched their product, each can feature only one specific type of bug it could kill. The product then flew off the shelves. As John Lee Dumas says, “You can get rich in the niches.” We can call a niche a vertical, and MSP businesses can get rich in verticals.
Why Target Verticals?
It’s important to know that many professional companies like law firms, CPAs, dentists, doctors, engineers, and architects prefer IT vendors with extensive experience in their industry. They specifically value understanding of the software and hardware they use. Because of this, they are very skeptical of switching IT providers unless the provider can show many referrals from current customers in the same line of business. As a result, you need to have targeted more than one client in that vertical to have 3 or 4 clients focused in just one vertical.
How to Target Verticals
Once you have successfully targeted a vertical, your marketing efforts in that vertical will gain momentum. Your managed IT services will be much more persuasive when potential buyers feel like you already know their tech systems from your previous experience in their vertical. Jonathan Crowe, Director of Community & Advocacy at NinjaOne, has written an article that talks about marketing in verticals for MSPs.
Steps to Start Targeting Verticals:
- Assess Your Current Clients: Look at all your clients to see where you have at least two or three in the same industry or vertical. If you have two or three, you are already golden and can start marketing in this specific vertical.
- Choose a Vertical: If you have just one company in lots of different industries, pick the most profitable one with the least issues.
- Direct Outreach: Start making direct outreach via telemarketing, visiting local businesses, and sending direct mail to companies in your local market that are all in the vertical you’ve targeted.
- Offer Special Deals: Sometimes you’ll need to offer special deals on pricing or throw in more value to land your second or third client in the same vertical. These sacrifices will pay dividends in the long run once your marketing builds momentum.
- Gather Testimonials: Once you have three clients in the same vertical, get written or, better yet, video testimonials that you can use in your marketing efforts. Practically no IT companies have a lot of video testimonials, much less all in the same vertical.
Taking this to market will help you go from one law firm to millions of dollars in recurring revenue, like Tony Safoian from SADA Systems. Just like the bug spray company that found success by focusing on specific pests, MSP businesses can achieve significant growth by targeting specific verticals. Remember, “You can get rich in the niches.” If you’re not actively targeting verticals in your MSP marketing, the time to start is right now!
P.S. By the way, you can always target more than one vertical!
