According to the Harvard Business Review, selling to existing customers costs at least five times less than acquiring new ones. That’s why every MSP must develop a strategy for adding services to its existing client base.
Assuming your customers are happy with the job you’ve been doing for them, they should be receptive to a discussion about adding more business. You can leverage the trust you’ve built by consistently and reliably delivering services to increase your business with them. And since existing clients already know you, you don’t have to spend time on selling them on your company before you can sell them a product.
But don’t take your clients for granted. If you want them to keep buying more, treat them right. Here are five best practices for adding wallet share with existing clients:
Don’t just talk to your customers when you want to sell them something. They’ll hide when they see you coming. Instead, keep communicating to tell them the work you’re doing, update them on the performance of their systems, and discuss future investments. By maintaining an ongoing conversation, when the time comes to sell new services, most of the work will be done already. They’ll know what investments are needed and will be more willing to sign on the dotted line.
Hand in hand with maintaining communication is responsiveness. Your customers shouldn’t have to track you down whenever they have a question or an issue. Make yourself available to their inquiries and be sure your technical support staff is doing its job satisfactorily. A responsive provider is a long-term provider.
Customers have specific needs, so when approaching them to add new services, make sure what you are proposing makes sense for their business. You don’t want to undo the goodwill you’ve established with customers by pushing a solution or service on them that they don’t need.
As an MSP, you know your customer’s environments better than anyone. You know how a customer can benefit from a value-add that will make their business more efficient and set them up for increased profitability. Smart customers are always willing to listen to value-add proposals, so long as you make the case effectively by showing them how they’ll benefit from the new offering.
To successfully sell more, you must know your customers’ businesses. You need to understand their challenges and know their strategic goals so you can tailor your offerings to their needs. This is knowledge you acquire through ongoing communication. Make it a point to ask them about current struggles, market conditions, and business aspirations whenever the opportunity arises.
Your existing clients are your best source of new business. Treat them right, and they will be receptive to adding services when you approach them.
Pedro Pereira is a Massachusetts-based writer who has covered the IT channel for two decades. Recognized as one of the first journalists to cover managed services, Pedro continues to track, analyze and report on the IT channel and the growing MSP partner community.
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