5 Ways MSPs are Increasing Revenue
Working in an industry that is not only high pressurised, but also continually evolving, it can be difficult to initiate and sustain growth. The value of MSPs was seen throughout the COVID-19 pandemic as they enabled businesses to adapt to remote working without an effect on day-to-day operations. As well as needing to be highly flexible and reliable for their customers, there is also a demand for MSPs to consistently offer evolving technologies, and at a competitive price. Partnering with the right vendors allows for more opportunities to increase revenue without the risk of taking from internal resources. Speaking with our partners, we have identified five ways they have removed barriers and increased revenue. By easily implementing these strategies you can scale quickly, without a loss in quality.
Increasing Product Offering
With an expected compound annual growth rate of 12.7% from 2021 to 2028, the MSP market is set to become increasingly lucrative and as a result of this, highly competitive. Offering products outside of your core product range with services and solutions the market values, will be highly beneficial to your business. Adding products of course means more opportunities of additional revenue however, it also increases your customer’s brand loyalty. Removing the need to seek products elsewhere means further commitment to your business and the services and products you offer. In speaking to our partners, they explained that being in a position where they can offer cloud-based solutions has opened up their potential customer base, as well as enabling them to earn more from those they already supply. Your current customers know you, your business and have already placed their trust into you, making them much more likely to take advantage of opportunities to cross-sell and upsell. At Synextra, we advise partnering with the right team that will offer you enterprise vendors that are reputable and reliable – it will make your job easier in the long run.
Growing with Customers
Working with your customers to support their growth is vital. They have already placed their trust in you making it more likely they will make you their first choice as they grow and their IT needs increase. As IT requirements grow, it is likely they will want to have their IT services in a single integrated platform, you can offer this through becoming a partner. Looking at the ways MSPs are currently generating revenue, BitTitan predict that MSPs will be expected to deliver even more cloud-based services in the next 24 months, with an average of 44% of MSP employees estimated to focus on dedicating on delivering these services. Is migrating to the cloud something you have discussed with your customers? As they grow and transition to new technologies, be the MSP that helps them get there.
Selecting the Right Partner
When new and existing customers approach you with an opportunity, the last thing you want to do is turn it down. Ensuring you choose the right partner to support you in taking advantage of these opportunities is essential to success. Going beyond the realms of working with, just another reseller, you want a partner who is integrated and invested in your solution and will be there to operate, maintain and deliver the service, for the long term. If you choose the right partner, you will see the benefits as they will play a vital role in helping you create new and maintain relationships with customers. They are also there as a support network, assisting your technical team using their expertise. Your capabilities as a business grow with a partner there to leverage and build on your team’s skills.
Outsourcing Product and Sales Training
Once you have chosen the right partner to work with and increased the solutions and products you are now offering, it is over to your sales team. Meeting with potential and existing customers to discuss an increased product range is an important part of the process in securing new business and increasing revenue – so it is essential that your sales team are equipped with the best training to deliver their pitches in confidence. In speaking to our partners, they expressed that the offering of product and sales training has made a big difference in the uptake of additional solutions and products. Account Manager, Abbey McAllister carries out the training for Synextra’s partner programme and has heard first-hand from teams how useful it is to have an expert on hand to answer any questions there may be, she says, “At Synextra we understand the pressure there is on MSPs to keep up to date with all the latest technologies and products to support their customers, we help with this. Having access to the training with us means they know they don’t have to seek the information from elsewhere and can find how we have successfully pitched it previously to customers, as we know what they are looking for. It is also reassuring that if there is a question, either from them or the customer, they can contact us direct, and we will support and guide them even after the training, whenever they need us.”
Sales Team Incentives
Providing your sales teams with the right knowledge to sell new offerings in your product range will help them to sell effectively. However, moving away from the products and solutions they know and sell regularly needs to incentivised. The Incentive Research Foundation (IRF) found that 90% of top-performing companies use incentive programs, helping motivate employees to hit specific goals and have found them to increase individual performance by 27%. We know that companies offering incentives to their sales team encourages them to sell and this can be further pushed through the partner you choose. You know the importance of choosing the right partner to give the best knowledge to your sales team, offering your customers enterprise vendors and providing your business with expertise and support it can rely on however, choosing a partner that will provide further incentives for your sales team will provide additional benefits and encourage your team to move sales through the pipeline more efficiently.
We know the reliance on MSPs is ever-increasing and it can be difficult to find the time and capital to invest in new technologies to increase revenue – becoming a partner can help. If you are an MSP wanting to increase your product offering with cloud-based technologies with the help of experts and see a ROI, get in touch with our team and we will be happy to help.