Clients want service providers who know their industry. If your firm serves multiple organizations in the same industry, you notice similarities and differences in their business models, how management decisions impact profitability and other nuances that make them more competitive within their industry.
Industry specialization reduces the risk of errors and maximizes the opportunity to give good advice. It provides a window into the nuances of business valuation, for example, that are unique to a specific industry, and industry subject matter experts understand it better than someone who isn’t a specialist.
Firms with industry programs offer a network of professionals to meet clients’ needs. You’d choose a cardiologist to treat your heart problems, right? Similarly, a client will choose an accounting/consulting firm that specializes in their industry and lives and breathes it like they do.
My real-life example −
Twenty-four years ago, I had a baby who needed brain surgery, and I was lucky enough to find the number one, nationally known pediatric neurosurgeon right in the children’s hospital in my city. After the successful surgery, as I was taking my baby to the follow-up visit, I started to wonder how much the surgeon would charge. Thanks to health insurance, I didn’t even consider the cost of the doctor’s services when selecting the right provider. However, my overriding thought was that I didn’t care if the medical bills were a million dollars. Whatever the price, I would have willingly paid it. In fact, the value of these very specialized services was priceless to me!
This example might seem extreme, but, if I started a business and put my heart and soul into building it up, taking risks and depending on it for my family’s livelihood, the business would be like my “baby” ⎼ and you can bet I’d prefer the service provider who truly understands my business in the context of my industry. The service provider who takes the time to bring the right team and valuable industry insights is the one I’d choose, and I’d be much less price sensitive and very unlikely to award the work to the lowest bidder.
