Managed Service Providers (MSPs) face a myriad of threats in today’s digital landscape. Diminishing margins have left MSPs short on cash as newly arriving competition claws at the bottom line. So how do you create an environment in which your customers stick with you and provide you a long-term revenue stream? Well, it’s time for MSPs to start thinking “sticky.”
To create “sticky sales”, you have to offer what your customers need both today and into the future. So which products and services are rapidly growing and will be desired well into the future? Think no further than cloud. The cloud services market is evolving at light-speed, and the traditional managed services model will eventually become commoditized. That means MSPs have no other option but to start thinking about the cloudy future.
Though cloud services are relatively new, sticky selling has been around for a long time. Previously referred to as “customer retention” or “customer loyalty”, the phrase is evolving as fast as the market. Selling sticky is now about moving away from break-fix transactions, and creating long-term partnerships with your customers that are mutually beneficial. With cloud services, getting the benefits from selling sticky has become easier than ever.
Check out these 3 reasons to start selling sticky today:
1. Explosive Recurring Revenue
With select channel-only, white-labeled solutions on the market today, building a cloud portfolio has become incredibly easy. Cloud services grow your portfolio, giving you the power to create long-term agreements for consistent recurring revenue. Predictable cloud pricing allows for vendors to bill you at a flat rate, and for you to bill your customers…well, at whatever rate you want. As your customers scale, so does your wallet!
2. Drive Customer Loyalty & Satisfaction
White-labeled cloud services can enhance any MSP’s portfolio, advancing your business even more into solution selling. Your newly enhanced portfolio with cloud will make your customers more competitive in their own space, driving long-term loyalty and satisfaction with your company. Remember, by helping your customers sell more…you sell more!
3. Close Faster & Sell Longer
Are you tired of the lingering 6-month maybe? Adding cloud solutions to your portfolio can reduce the sales cycle. Sticky selling drives incentives for your customers with turnkey services and allows you to easily add discounts for faster closes and contracts over 24, 36, and 48 months. Bundle your services, sell on value, and let the recurring revenue flow. And remember, waiving a “setup” or “consultation” fee goes a long way in creating satisfied customers.
MSPs need to start viewing the future from the eyes of their customers. If you don’t start providing them the services they want – someone else will. By turning your customers into advocates, you may just find yourself sitting back and collecting a long-term revenue stream. Explosive recurring revenue and relentless customer loyalty gained from providing cloud solutions can ensure you make it through the next phase of technological evolution. The future of managed services doesn’t seem so cloudy now…does it?