Grow Greater Value through Specialization
Successful Specialization Tactics
Step 1. Specialized Product or Service
Specializing in one product or service allows you to focus on delivering that thing better than everyone else. It enables you to hire (or train) specialists in your field, improving the quality of your work, which leads to happier customers. And satisfied customers buy again and refer their friends.
That’s why specialists often grow faster even while they are spending less on marketing, leading to better profit margins and, ultimately, a more valuable company. Specializing in a specific product or service has tremendous benefits, but what if your customers expect you to deliver a range of offerings?
That’s when the second form of specialization can help: focusing on a specific industry.
Step 2. Become an Industry Expert
Specializing in serving a specific industry confers several benefits.
First, It allows you to learn the language spoken in that sector. Being able to speak the jargon can benefit your company. This demonstrates to customers that you are experienced, knowledgeable, and able to navigate the space.
Secondly, it ensures you stay current with industry trends, so you identify new opportunities for your customers sooner than a competitor who serves multiple industries.
Thirdly, it allows your employees to become experts in a sector. If you are not the only industry expert in the firm, your team can take over more customer management more successfully. An increase in customer satisfaction leads to more referrals and a strong reputation in the sector.
Real cases of industry specialization have led to a 20X increase in revenue and 10X on sale value.