Joshua Feinberg discusses the challenges faced by data center hosting and business continuity firms in small, congested markets. 

He emphasizes the need for hybrid business models or scaling to compete effectively. 

He highlights the importance of a SWOT analysis to identify strengths and weaknesses and suggests multiple go-to-market strategies, including local face-to-face events and national/global digital marketing. 

Feinberg stresses the necessity of early and frequent engagement with potential clients, noting that 83% of the buyer's journey occurs before sales contact. 

He also advises differentiating throughout the entire buyer's journey and considering expanding beyond single-location services due to the evolving IT landscape.

This video is excerpted from the podcast Ep. #45 Joshua Feinberg, CEO of DCSMI | Data Center Go-to-Market Podcast.

Action Items

  • Define the ideal client profile and generate a target account list for the local and national/global markets.
  • Understand the target clients' key goals, challenges, and stressors and create helpful educational resources to position the firm as a trusted advisor.
  • Evaluate the business model and go-to-market strategy to determine if expanding the range of services is necessary for growth in the small, congested market.

Outline

Growing in a Small, Congested Market

  • Joshua Feinberg discusses the challenges data center hosting and business continuity firms face in small, congested markets.
  • He notes that many colocation businesses have evolved into hybrid business models or have scaled up to meet market demands.
  • The commoditization of the web hosting market over a decade ago has led to the dominance of large players, making it difficult for smaller firms to compete.
  • Power grid capacity issues are also a significant challenge for both large and small players in the market.

Strategic Positioning and SWOT Analysis

  • Joshua emphasizes the importance of self-awareness and conducting a SWOT analysis to identify strengths and weaknesses.
  • He advises having at least two different go-to-market strategies: one for local clients and another for national and global markets.
  • To build relationships, local strategies should include hosting user group meetings, meetups, and other face-to-face events.
  • National and global strategies should focus on search engine optimization, LinkedIn marketing, and other digital tactics.

Local and National Marketing Strategies

  • Joshua suggests partnering with other businesses for local events to share the marketing load and attract a broader audience.
  • He highlights the importance of repurposing content from local events into webinars, videos, and other formats to expand its reach.
  • Differentiating between local and national client profiles is crucial for effective marketing and sales strategies.
  • The ideal client profile should be clearly defined to effectively target specific companies and industries.

Differentiating in a Competitive Market

  • Joshua explains that true differentiation in today's market requires standing out throughout the entire buyer's journey.
  • He points out that traditional differentiators, such as being better, faster, or cheaper, are only relevant in the final stages of the buyer's journey.
  • The first 83% of the buyer's journey involves extensive research and comparison, making early and frequent engagement crucial.
  • A typical buyer's journey for hosting and business continuity services may involve 28 touchpoints, necessitating a comprehensive marketing strategy.

Defining Success and Ideal Client Profiles

  • Joshua advises defining success by analyzing past case studies and identifying the ideal client profile.
  • The ideal client profile should include geographic factors, company size, business model, industry, and other relevant details.
  • A target account list should be generated based on the ideal client profile to focus marketing efforts effectively.
  • Understanding potential clients' needs, goals, challenges, and stressors is essential for creating helpful educational resources and events.

Expanding Services and Market Reach

  • Joshua notes that many companies in the market have expanded their services to include managed services, software development, accounting, and cybersecurity.
  • This expansion helps them attract a broader client base and improve profitability.
  • The nature of services offered may need to be expanded to grow and be profitable in small, congested markets.
  • He cautions that sophisticated IT decision-makers should no longer rely on a single location for business continuity.

Addressing Business Model and Go-to-Market Issues

  • Joshua emphasizes addressing significant business model issues and marketing and sales challenges.
  • Small, congested markets require careful consideration of who to help and what services to offer to ensure profitability.
  • He suggests that a second or third location is necessary for business continuity, even if it's rented space in another colocation facility.
  • The conversation highlights the complexity of growing a data center hosting and business continuity firm in a small, congested market.

Resources

Watch the full podcast Ep. #45 Joshua Feinberg, CEO of DCSMI | Data Center Go-to-Market Podcast

 

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