Nothing is more important for MSPs than retaining existing customers and having the opportunity to upsell new and more profitable services. The cost of customer acquisition can make it challenging to profit significantly during an initial contract period. Greater profitability typically comes from continuing to deliver services year-after-year and from attaching additional services to the contract as time goes on. Becoming a trusted advisor to customers, so that you are both highly regarded and have an opportunity to influence their purchase decisions, has always been important to this process. However, how you become a trusted advisor and how quickly, depend on some key factors.
Challenge your customer’s thinking
According to Matthew Dixon and Brent Adamson, authors of “The Challenger Sale*”, it’s not what you sell that matters it’s how you sell it! When discussing why B2B customers keep buying or become advocates – in short, how they become loyal customers – the unexpected answer is that their purchase experiences have more impact than the combined effect of a supplier’s brand, products/services, and their value-add!
Not that these factors aren’t important – they clearly are vital too – it’s just that beyond their initial purchase needs, what customers most want from suppliers is help with the tough business decisions they have to make. This is especially true when it comes to technology decisions. The best service providers have great experience helping other, similar, companies solve their challenges and are willing to share their knowledge. They sit on the same side of the table as the customer and help evaluate alternatives in a thoughtful and considerate fashion. In short, they operate as trusted advisors.
The key is to start out as you mean to continue. How can you make every customer interaction valuable from the very outset, even before your prospect becomes a customer? Dixon and Adamson suggest the best way is to challenge their thinking with your commercial insight into their business. What might be the potential business outcomes of contracting your managed services? Yes, they will benefit from your expertise in monitoring and maintaining their IT infrastructure, but in addition, how can the unique characteristics of your services and your professional resources enable new business opportunities for them? What might those opportunities be?
Beyond insights gained from working closely with other customers, having the right tools can have a significant impact too. For example, there are monitoring and management tools that can be used to provide visibility into every aspect of a customer’s IT environment. But tools which are focused on a single device or technology area or are purely technical in nature, have only limited value when it comes to demonstrating support for customers’ business needs. Most customers have a strong interest in minimizing costs and reducing the likelihood and impact of disruption, such as might be caused by a virus or other malware. Being able to discuss security, automation and policy management capabilities and show how these help reduce costs is very important during the purchase process.
Customers who absolutely rely on IT service availability to support their business require greater assurance. Tools that cut through the complexity and aggregate the details to provide decision makers the information they care about, are of immense value. For example, the ability to aggregate information at the level of IT or business service and report on the associated service level agreement (SLA). Better still, the ability to proactively determine potential impacts to the SLA, such as growing network traffic or declining storage availability, so that preventative actions can take place. Easy to understand dashboards and reports showing these results can then be used in discussions about future technology needs, further supporting your trusted advisor approach.
With the right tools you also have a means to demonstrate how you will be able to meet a prospect’s service-level needs and their specific infrastructure characteristics, during the sales process. In IT, demonstrating how you will achieve what you promise is as important, if not more so, than what you promise. How will you show that you can deliver 97% service availability, reliably and at low risk to you and to your potential customer? Doing so adds to your trusted advisor stature.
Unless you have a specific industry focus, most customers don’t expect you to know everything about their business – just about how your services and solutions can make a strong difference. They will prefer to do business with market leaders and with those who demonstrate insight and understanding of the latest information technology trends, such as cloud services and mobility, and the associated management implications. First, it reduces their purchase risk and makes it more likely that they will actually make a decision to purchase. Secondly it adds credibility, again enabling them to see you as a trusted advisor, one who demonstrates a clear understanding of market dynamics and can assist them in making the right decisions.
Credibility depends a lot on how you support those insights with your own products and services. Are you telling customers that cloud and mobile are increasingly important but without having services that support these areas? What about security and applications support?
Being a trusted advisor means that you, and your organization, must be focused on your customers’ success. Make every interaction of value, leverage the right tools and deliver advanced services and you will quickly be seen as a trusted advisor and be able to turn every new customer into a lasting one and a strong advocate.
Learn more about how Kaseya technology can help you create advanced managed services. Read our whitepaper, Proactive Service Level Monitoring: A Must Have for Advanced MSPs.
*Reference: The Challenger Sale, Matthew Dixon and Brent Adamson, Portfolio/Penguin 2011
What tools are you using to manage your IT services?