While many MSPs have a target audience they market towards or a type of client they prefer, few are as choosy as Southern California-based-MSP SOKOTEK’s Israel Rivera. But the CEO’s rigorous client qualification process is responsible for his MSP’s 40% year-over-year growth. Here’s what the MSP looks for when qualifying prospects, and why Rivera says he’s in the customer service business.
Getting Started, Stalling Out, Trying Again
Rivera started his first business, a break-fix residential solutions business, with his cousin. “The goal was to help even more people with their computer systems,” says Rivera. “And at first, my cousin and I were completely aligned in our vision. But over time, I wanted to expand the business from simply break-fix, residential solutions into the small business sector and he did not, so this company was eventually dissolved.”
This gave Rivera the push he needed to launch SOKOTEK in 2014. Though the MSP was first created to empower businesses with seamless IT solutions, it has since grown into much more. “After founding SOKOTEK, it became evident that small businesses were not receiving the quality service they deserved,” says Rivera. “So, although we are a tech company, we’re also a customer service business. It’s important for us to have a relationship with our clients so we can personalize their customer experience to their needs and goals. We want to be their trusted technology partner, not just another vendor.”
The Client-Selecting Strategy
Over time, the SOKOTEK team has become more deliberate about who they choose to work with. “Admittedly, at first, we were just taking on pretty much any small business as we built up our name,” explains Rivera. “While small businesses are still at the core of what we do, we’ve also developed a few niches: mainly healthcare organizations, law firms, and financial institutions.”
SOKOTEK’s focus on the healthcare industry stemmed from working years ago with an optometrist business, one of their biggest clients. This gave them exposure to the different software and vendors the business was utilizing. “We really liked it because we already had a partnership with those specific vendors,” Rivera says. “If we had a big problem, we knew which vendor to contact. My engineers and I were able to learn how to fix things. That has become a standard for us.”
By remaining inside of the same niche, the MSP has been better able to streamline and standardize their processes.
In fact, their client-selection strategy has been SOKOTEK’s biggest catalyst for growth. “[Having a] specific target market lets me concentrate on those clients that meet our requirements. We usually look for clients with 10+ users, because they can most likely afford our services. It has given me the opportunity to narrow down the number of prospects we get without fear. In a way, I’ve been increasing our revenue with fewer clients.” Rivera explains that by qualifying his prospects rigorously, he is left with fewer, better clients—which has been better for his growth than having higher quantities of clients who can’t afford his services.
Choose Clients Who Appreciate What You Do
Rivera explains that after the frustration of former clients not understanding or appreciating their services—and consequently, seeing them as a waste of money and time—he only takes on clients that recognize the value of their services.
“Our clients must be open-minded and ready to implement robust technology solutions to streamline and secure their business,” he says. “They have to understand the value they’re going to get from our services. Some people might be able to invest whatever amount of money, but if in the back of their minds, they don’t even understand what they’re getting or why they have to invest the money, it isn’t worth it. I’ve been in the situation where I’ve had a client getting our services and spending a lot of money every month, and then asking, ‘What are you guys doing for me?’ So, we want to make sure that the prospect understands what they’re getting, what the benefits are, and what the investment is going to be.”
Why Every MSP Should Choose A Niche
Rivera’s advice for other MSPs is to choose a niche of their own. “Start with a specific target market,” he recommends. “I’ve talked with other MSPs at networking events and heard stories about clients not working out, because they’re just taking clients [without much strategy]. I think if you really start targeting a specific target market, you can learn and become an expert in that area.”
Looking ahead, Rivera and his team plan to expand their reach nationwide. “First, we’re in the process of conquering Southern California,” Rivera says. “Next, we’re looking to push into Texas, Florida, Ohio, and throughout the States. Then, there is such a big technology need in Mexico that our first international venture would be there.”
Thanks to SOKOTEK’s strategic client qualification process, the business has been able to grow and expand at an impressive rate, bringing quality managed services to more (carefully chosen) clients each year.
