Vertical market expansion represents an opportunity to generate a new line of revenues and bottom-line growth. Not only is it healthy for a business that thrives solely on a singular market, it introduces a fresh stream of revenues as well. But before you dive right into your vertical exploration, it’s important to understand the larger picture, which includes the potential for risk and additional investments, in addition to the possibilities of larger revenues and profits.
Working with the right partner, such as DXC SLMS Hosting, is key in identifying new vertical markets that fit well within your service provider specialty areas and offerings.
Deciding The New Vertical
It is essential that the new vertical you are exploring has some business value and that it has some relevance to your company’s principle service specialty. The new vertical may be closely related to your business offerings. For instance, a service provider may leverage the resources and specialties offered by their company to work within an entirely new market.
Several other factors are also responsible for making this decision of investing in another vertical. It is difficult for a company that has always remained the leader in a very specific niche, and now wants to try out different routes to engage customers while also getting more sales. To ensure that you get positive results with minimum risk exposure, there are certain things you need to consider first.
It’s well documented that cloud and hosted solutions are being embraced by businesses of every size, but what are the unique needs of companies in specific markets for areas such as virtualization or database solutions? DXC SLMS Hosting can offer guidance in these critical areas by educating service providers on the use of Citrix license solutions and Microsoft license opportunities.
As an example, a service provider offering virtualization and productivity application solutions to a set of companies in the engineering space, may also want to offer similar hosted licensing solutions to companies in the legal vertical. The use of applications may have similarities (with the need to access productivity applications and files from remote areas), but there will be education needed to explain features, benefits and ROI for uses specific to legal professionals.
What’s more, the DXC SLMS Hosting team can analyze your current portfolio of licenses and consult on the best ways to expand your portfolio into new markets to maximize cost savings and profit potential, while remaining in compliance.
The new market that you are exploring, is it already dominated by a well-known competitor brand? If so, your strategies must involve fresh new ideas to capture an already-taken customer base. This can be achieved by providing additional worth to your product, such as add-on services, but the return on such investments must be thoroughly calculated.
Timing Is The Key
The next stage to development of a new market is the timing of service launch. To increase the chances of success, a well planned roll-out of your offerings is very helpful. Discuss with your team when customers are most likely to be ready for implementing your product into the market. Analyze how well your competitors are faring and at what times is the market most receptive for new players. A good example here would be an expansion into the accounting market. Knowing most accountants are busiest during the first quarter for tax season, it might be wise to be in sales mode during Q2, with integrations of database or productivity software and applications planned for Q3 and Q4 so they are up and ready for the following tax season.
Execute The Plan – Like A Pro
Do not undermine your team’s potential. With unlimited resources and new perceptions, it is possible to reinvent the wheel and still be a leader in innovation. Start your project with a clear vision, set goals for your team and encourage them to integrate their own ideas in the process.
Which verticals are you looking to break into? The DXC SLMS Hosting team is available to help service providers grow by consulting on a wide range of Citrix- and Microsoft-based license and hosting environments. What questions do you have for us? Schedule a session today by clicking on this link. And don’t forget to join our social communities for additional conversation on Twitter, Google+ and LinkedIn.