If you do not know who your customers are, you will not be able to serve them properly. Though no two clients are exactly the same, there are plenty of overlapping characteristics, needs, and desires across the customer base. Once you define and analyze the target market of your MSP company, you will be able to streamline your offerings and ultimately serve your clients better than the competition.
Strive to Understand the Market
The core client base of your MSP company is also your target market. These clients are in need of your unique services, so you must make an effort to understand them. Get a handle on your target market’s business needs, as well as their motivations. Analyze the demographic data in-depth and you will likely find some commonalities amongst the group, ranging from occupation to age and beyond. Use all of the information you collect to shape your marketing efforts, as well as your services.
The Challenge of Identifying the Target Market
A comprehensive review of your services, prospective customers, and the market is necessary to pinpoint your target market. Consider what types of problems your services solve and the companies/professionals these services appeal to. Once this analysis is performed, you will have a better idea of which businesses and professionals are most likely to need or benefit from your idiosyncratic offerings.
It will also help to conduct market research. Use analytics tools like Google Trends and Quantcast to get a better understanding of the marketplace, identify competitors, and figure out how to gain a competitive advantage. When in doubt, rely on your current and former clients for data and insights. Use focus groups, discussions, surveys and other tools to identify target market needs and desires.
Build Client Profiles and Market Segments
Market segmentation is a fancy way of referring to the process of organizing a group into distinct categories, such as demographics. Demographics detail superficial characteristics such as gender, family, status, and age. Psychographics are also important as they provide a look into who clients are, what they behave like, what their value system is, personality traits, and so on.
Gauge the Competition
Find out if other local businesses are providing similar services. Get a sense of their pricing, marketing strategy, and unique offerings. If you do not have a meaningful advantage over the competition, do not attempt to take them on head-to-head until a later point in time.
The Payoff: Put Your Analysis into Action
Once you have analyzed your target market, it is time to put data to work. As an example, if your analysis reveals the market has one or several voids your business can fill, focus on service development. The data and insights you collect will empower you to create new, much-needed services your target market needs. Beat the competition to the punch, and your MSP company will win that much more market share!