The Importance of Differentiating Your MSP in a Competitive Market

Stefanie Hammond shares valuable insights into why differentiation is crucial for MSPs and how they can start making changes to set themselves apart.

In today’s crowded marketplace, Managed Service Providers (MSPs) face more competition than ever before. The challenge is no longer just about delivering excellent IT services; it’s about standing out from the competition in a meaningful way. During my Podcast, Unlocking MSP Sales Success, with Stefanie Hammond, she shared valuable insights into why differentiation is crucial for MSPs and how they can start making changes to set themselves apart. This blog shares some of the highlights.

Watch the full conversation here: Stefanie Hammond—Unlocking MSP Sales Success

The Problem with Generic Messaging

One of the biggest mistakes many MSPs make is using generic messaging in their marketing. When I asked Stefanie about this, she didn’t mince words: “When I look at websites, I’ll see, ‘We are the premier managed service provider in the local area,’ and I think, ‘Who cares?’” The issue is that this kind of messaging doesn’t resonate with the target audience—non-technical business owners.

Many MSPs focus on industry jargon, assuming that terms like « managed services » will carry weight with potential customers. But as Stefanie pointed out, non-technical business owners don’t understand—or care about—industry terminology. What they do care about is how you can solve their specific business problems.

“They don’t understand what MSP means,” Stefanie emphasized. Instead of leading with technical jargon, MSPs should focus on real-world problems and solutions. For example, if a business owner is worried about their operations during hurricane season, an MSP offering a business continuity plan is far more compelling than one touting their “top quality managed services.”

Shifting the Conversation from Tech to Business

Another key to differentiation lies in how MSPs present themselves during sales interactions. As Stefanie explained, MSPs often make the mistake of approaching sales conversations from a technical standpoint, which can alienate the very people they are trying to sell to. “When they do try and do the sales role, they come at it from a technical perspective,” Stefanie said.

This is a fundamental disconnect. The potential client is not interested in the technical intricacies of the service; they are interested in how the service will make their business more efficient, secure, or profitable. Stefanie suggested a better approach: focus on outcomes, not features. MSPs should frame their conversations around how they can help businesses reduce costs, improve efficiency, or maintain operations during a disaster.

Differentiation through Services

Many MSPs offer a wide range of services—security, compliance, business continuity, training, and consulting—yet fail to communicate this breadth effectively. Stefanie highlighted that a lot of MSPs still promote themselves as if they are only there to “fix computers.” This perception needs to change. “MSPs do so much more than that,” she said, “but when you look at their websites, they don’t talk about that.”

This presents a huge opportunity for differentiation. By clearly communicating the full spectrum of services they offer, MSPs can set themselves apart from competitors who may still be clinging to outdated perceptions of what an MSP does. “We fix computers” doesn’t cut it anymore. Instead, MSPs need to lead with the specific value they bring—whether it’s cybersecurity, compliance, or disaster recovery.

Telling Your Story

In addition to shifting the sales conversation, MSPs need to consider how they tell their story. As Stefanie pointed out, “They’re not doing a good enough job differentiating themselves from their competitors.” Storytelling can be an incredibly powerful tool in this regard. Every MSP has a unique origin story, set of values, and approach to service that makes them different from the MSP down the street. The key is to weave these elements into your marketing in a way that resonates with your target audience.

Stefanie gave the example of websites that feature generic claims like, “We are the premier MSP in the local area.” This kind of messaging doesn’t tell a compelling story or differentiate your brand. Instead, MSPs should focus on crafting messaging that speaks directly to the needs and challenges of their ideal clients.

Actionable Steps to Differentiate Your MSP

So, how can MSPs start differentiating themselves in a meaningful way? Stefanie offered a few key tips:

1. Know Your Audience: Speak the language of your target audience. This means understanding the specific pain points of your potential clients and addressing those directly in your marketing and sales conversations.
2. Focus on Outcomes: Stop leading with tools and technology. Instead, focus on the outcomes your services deliver. Are you helping businesses improve their security posture? Ensuring business continuity during natural disasters? These are the points that will resonate with business owners.
3. Tell Your Story: Don’t be afraid to tell the story of your MSP. What makes your approach unique? Why do your clients love working with you? Authentic storytelling can be a powerful differentiator in a competitive market.
4. Communicate Your Full Value: Many MSPs are offering a wider range of services than they are promoting. Make sure your potential clients know about all the ways you can help their business, from cybersecurity to business continuity.

Final Thoughts—Talking Business

Differentiation is no longer optional for MSPs; it’s essential to surviving in a competitive marketplace. Stefanie Hammond’s insights reveal that too many MSPs are relying on generic messaging and focusing too much on technical details that don’t matter to their target audience. By shifting the conversation to outcomes and telling a more compelling story, MSPs can set themselves apart from the competition and attract the right kinds of clients.

As Stefanie put it, “We need to stop talking technical speak and start talking business speak.” MSPs that embrace this shift will be well-positioned to succeed in today’s market.

Are you ready to stand out from the competition? Learn more about how to differentiate your MSP and communicate your true value by watching the full interview with Stefanie Hammond—Unlocking MSP Sales Success. We discuss specific techniques to move beyond generic messaging and start winning clients. Head over to YouTube or listen on your preferred streaming service to get the full story!

• Watch Unlocking MSP Sales Success
• Listen to Unlocking MSP Sales Success