In the ever-evolving world of digital agencies, finding a unique edge is often the difference between thriving and merely surviving. BugHerd CEO Stephen Neville interviewed Scott Jacques, Principal and Owner of NK Interactive, to dive deep into a topic many agency owners grapple with—whether to remain a generalist agency or specialize in a specific sector. Scott shared NK Interactive’s transformative journey from generalist to specialist, the deliberate choices that shaped their focus on the Architectural, Engineering, and Construction (AEC) sector, and the tangible benefits specialization has brought to their agency.

The beginning of NK Interactive’s specialization journey

Based in San Francisco, NK Interactive is a boutique, digital agency primarily servicing the AEC sector.  Think large-scale projects such as highways, high-rises, and data centers. The agency’s typical clients are firms generating revenues between $50 million and $2 billion.

But this focus wasn’t part of their original game plan.

Fifteen years ago, NK Interactive operated as a generalist agency, working with clients across multiple industries. Their journey toward specialization began somewhat organically when they landed a project with one of the largest general contractors in the country. This project, while successful, didn’t immediately spark a full shift. It wasn’t until around five years ago, after consistently receiving word-of-mouth referrals within the construction industry, that Scott and his team made the conscious decision to focus entirely on the AEC sector.

It was the pattern of incoming business inquiries, paired with a growing body of industry-specific knowledge, that ultimately led NK Interactive to double down on specialization.

The driving forces behind specialization

Over time Scott noticed recurring challenges and pain points within the AEC sector—issues that were consistent across different clients. These insights allowed the agency to tailor its services and technology offerings, building a robust understanding and suite of tools that addressed these industry-specific needs.

Rather than continuing as a jack-of-all-trades, they realized the power in becoming subject matter experts. This specialization not only differentiated them in a competitive marketplace but also allowed them to develop solutions that directly addressed the unique business development, marketing, and operational needs of AEC firms.

The choice to specialize wasn’t a rejection of all other industries. Instead, it was about focus. While NK Interactive still occasionally works with clients outside the AEC space—primarily legacy clients or projects that pique their interest—all of their new business efforts are now directed exclusively toward the AEC sector.

How specialization impacted client acquisition & retention

One of the most impactful benefits NK Interactive experienced was in the area of client acquisition. Their specialized knowledge fundamentally changed the nature of their sales process.

Before submitting any proposal, Scott insists on a Zoom call with prospective clients. These calls allow him to showcase the team’s deep understanding of the AEC sector and discuss specific pain points the client is likely experiencing such as:

• building custom workflows
• streamlining content management
• addressing the challenges of proposal generation

NK Interactive can speak the client’s language and propose tailored solutions.

These conversations often produce "Aha!" moments for clients. They quickly recognize that NK Interactive’s expertise goes far beyond typical web design—they understand the intricacies of the construction industry and can offer solutions aligned with clients' business goals and pain points.

This targeted approach has had a measurable impact. NK Interactive’s proposal win rate has skyrocketed since specializing. Not only are they securing more business, but they’re also forming longer-term relationships. Many clients return months later to implement additional features or engage NK Interactive for ongoing work, creating a predictable and profitable pipeline.

Overcoming challenges in the transition to specialization

Transitioning from a generalist agency to a specialist one didn’t happen overnight, and it came with its own set of challenges.

Timing: 
Early on NK Interactive risked positioning themselves as subject matter experts too quickly, based on a limited number of engagements. Before fully specializing, it’s important to take your time to truly assess the opportunity, continuing to ask questions, actively listening to clients, and being cautious not to jump into specializing too soon.  

Balancing existing clients outside the AEC sector: 
Rather than abruptly cutting ties, NK Interactive adopted a natural approach, gradually phasing out non-AEC work while maintaining relationships with valued legacy clients. Their primary focus, however, was redirected entirely toward their niche.

Advice for agencies considering specialization

1. Define what you want.
   Before diving into a niche, take the time to consider your long-term goals. What kind of agency do you want to run? Do you want to grow a large team, or stay lean and focused? What lifestyle and culture do you want to cultivate? Your answers will shape your specialization strategy.
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2. Audit your current clients & inquiries.
   Look for patterns in the types of clients or industries you’re already serving. Are you getting repeated work in a particular sector? Are there industries where you've already built a body of knowledge or strong referral networks? Let existing data guide your decision.
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3. Stay curious & continuously learn.
   Specialization requires more than marketing yourself as an expert—it’s about becoming a lifelong learner within your chosen industry. Attend networking events, read industry publications, engage on LinkedIn, and have real conversations with stakeholders. The deeper your understanding, the more value you can provide.

Final thoughts

Scott Jacques’ experience at NK Interactive is a powerful case study in how focusing on a specific industry sector can transform an agency’s trajectory. Specialization has allowed them to charge premium rates, improve profitability, streamline processes, and even identify opportunities for long-term product growth.

For agencies struggling to stand out in a crowded marketplace, the key takeaway is clear - narrowing your focus may just be the smartest strategy to unlock sustainable success.

Catch the full webinar replay and learn how specializing in a specific niche could elevate your agency’s growth trajectory.