Stefanie Hammond, sr. channel sales specialist here at SolarWinds MSP, used her presentation to focus on the various types of MSP packages successfully implemented in the marketplace.
“Having well defined service offerings is imperative because not only will it help streamline your sales process for your sales team and your clients, but it will also improve and streamline how you deliver those services out of your Network Operation Center (NOC). This helps you accelerate your customer growth and profitability levels for your business,” she explained.
Hammond focused on four specific topics:
Stefanie pointed out that while there are opportunities for managed services everywhere, the best opportunities lie in those businesses that are about 100 employees or less and do not have an internal IT department or internal IT resource. “This is where you can build out support programs to specifically target these types of organizations that don’t have the in-house technical expertise,” she said. “Aligning your support packages based on your prospects’ overall budget, support requirements, and any other support expectations helps you ensure you sell more.”
But if you have customers that tend to tip toward the larger end of 100-plus employees, there are also massive recurring revenue opportunities to be had in the mid-market space. Even though these types of organizations have internal IT departments with dedicated technical resources and, therefore, may not be a good fit for the traditional managed services support packages, there are still programs that you can build to target these organizations, if you choose to. With internal IT teams being consolidated, these larger organizations are looking for reliable, outside assistance and specialty support as they continue to grow.
“So while the SMB space is still a very lucrative market to target, augmenting that with migration into the mid-market segment as well can allow for double-digit growth in both device management and revenue growth on a monthly recurring basis,” she continued.
Stefanie highlighted the four main customer segments as:
She added that over the years, we have seen IT service providers/MSPs provide five distinct categories of services within each of those segments:
Stefanie went on in detail about how each category worked for individual customer market segments. The objective of this, she explained, was two-fold:
“In either case,” Stefanie explained, “creating a set of standard programs that incorporate the same technology stack on the back end (for example, using the same RMM, AV, backup, email filtering, web filtering, compliancy scanning) across every program level, is imperative.”
She continued, “This helps simplify the sales and marketing process, as you have removed the option of allowing your customers to create ‘custom’ programs and to dictate what they will buy or receive from you. It will also allow you to gain additional revenue because if you have programs out there currently that are of all different shapes and sizes, creating standardized programs with standard features will allow up to ‘upgrade’ services and increase the amount you charge your customers today. You are providing additional value through the inclusion of additional services.“
Stefanie added that creating standardized programs with a specific set of software tools will also create efficiencies for your NOC engineers and technicians and simplify the onboarding process as well as the ongoing management of those customer networks you take on. This saves you considerable time and money in terms of labor costs, thereby increasing your overall profitability levels, making your MSP practice much more valuable in the marketplace.
She rounded up by saying that offering three distinct types of programs allows the MSP to offer a cost-effective, basic level of service to the most price-sensitive clients to begin the education process and start generating recurring revenue from these types of clients who have been very unpredictable and chaotic in the past. “Once you get them on board at the à la carte program level, you are able to work with them—through consultative sessions and professional reporting—to move them up the ladder into a proactive program and ultimately the fully managed program,” she concluded.
If you want to find out more about the content of this session, check out Stefanie’s webinar in the MSP Institute’s Business Training track. Then watch the below webinar:
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