U.S. small businesses are preparing for a record-breaking holiday season, with 84% of business leaders expecting an increase in revenue despite inflation and supply chain disruptions. To target young consumers, companies are focusing on social media platforms like TikTok while also investing heavily in digital marketing and influencer partnerships. Despite potential challenges, businesses plan substantial discounts and major shopping days to boost sales.
Small and medium-sized IT enterprises (SMEs) in the UK are optimistic about 2024, expecting 14% growth and planning to invest £17bn in their businesses. Their optimism stems from resilience during the pandemic and a strong recovery. IT firms are particularly optimistic, with ambitious investment plans in marketing, customer service, digital technologies, and staff training. While concerns about the uncertain environment persist, there is hope for a decline in inflation rates and stable or lower interest rates in 2024.
According to a report by TD SYNNEX, 65% of MSPs surveyed prioritize business consulting and planning, while 75% expect business growth. Expanding solution offerings is considered essential for growth by over three-quarters of MSPs. The top areas for growth are predicted to be data analytics, artificial intelligence/machine learning, and augmented reality/virtual reality. MSPs face challenges in talent recruitment, technical education, and keeping up with technological change. Revenue expectations align with wider channel expectations, with 75% of MSPs expecting revenue growth. Regulatory pressures, particularly ESG standards, are also a concern for MSPs.
A recent survey by Kaseya reveals that global managed service providers (MSPs) are prioritizing customer experience and vendor consolidation. Over one-third (35%) of MSPs globally attribute competition to being the biggest challenge, up from 29% last year. The survey found that increasing competition has led MSPs to focus on delivering a positive customer experience while also seeking to simplify their tech vendor associations.
And one seemingly for vendors… According to a poll by Canalys, vendors can enhance their relationships with channel partners by creating dedicated Managed Service Provider (MSP) programs that cater to partners’ specific needs. About 70% of polled partners stated that a dedicated MSP program improves their relationship with vendors. The report emphasizes the importance of distinguishing MSP programs from broad partner programs and tailoring them to the unique requirements of MSPs. It also highlights the value of MSP-specific certifications and badges to differentiate experienced MSPs from newcomers in the market. The article suggests that vendors should understand their importance in the managed services landscape and accordingly design incentive structures and programs.
US sentiment may not be great, but the market looks like good times as we go into the holidays. I offer the UK data because that market is distinctly less rosy; even there, we see optimism. Good times ahead.
Customer experience is distinctly related to data analytics, AI, and machine learning. The trick is pulling it together.
While my lens for analysis is for providers, I wanted to offer that vendor insight here for two reasons. First, vendors, if you’re listening, this is relevant. And second, providers, I want you to hear the advice being given to your vendors.