A recent survey of 102 Australian MSPs across 14 locations asked the question “When you think about your engagement with customers which of the following best applies to you?” with the following responses:
Being clear about your differentiating value proposition is closely aligned to an understanding of your customers and their specific needs. Changes that impact clients, such as updates to legislation or compliance regimes, create compelling moments that in turn drive sales opportunities. However, the focus is required to filter those changes that are relevant to the MSP and their clients from the general noise of change. Alignment to industry verticals or horizontal specialisations is a critical part of this filtering process and allow MSPs to differentiate their services to clients. So, it is positive that 51% have identified a vertical or product specialisation, however, for the other 49%, there is a risk that their customers will see the relationship as interesting rather than essential.
Other research re-enforces the importance of a vertical focus with a recent Channel Futures global survey of the top 501 MSPs (Channel Futures, 2018), highlighting that only 22% indicated “No vertical focus”. Also, a McKinsey report highlighted a clear alignment between vertical focus and increased annual contract value.
Overall it is encouraging that 51% of respondents to the rhipe survey indicated a clear business focus. However, only 15% had an alignment to industry verticals, providing opportunities for improved financial performance for 85% of respondents.
To find out more download the rhipe White paper “Digital Transformation: The pulse of Australian MSPs