10 Tips to Improve Your Revenue as an MSP
Revenue growth is the holy grail of business but it doesn’t necessarily come easy. More so for managed service providers (MSPs) that have a rather complex business model.
For instance, MSPs face the challenge of building operational maturity while tracking key business metrics that increase MSP revenue and profitability. With several services offered and so many moving parts to juggle, it’s no surprise some businesses are at a loss as to where to start.
To help you out, we’ve provided 10 tips you can use to improve your MSP revenue.
1. Track MSP revenue
The acclaimed business management guru Peter Drucker famously said, “If you can’t measure it, you can’t improve it.” Monitoring MSP revenue allows you to see where there’s room for improvement. You can’t conceivably tell if your business is profitable if you aren’t monitoring your MSP revenue.
Therefore, prudently tracking revenue and expenses should be a no-brainer. Tracking MSP revenue enables you to grasp the KPIs that drive its profitability. It also allows you to determine whether the cost of your MSP business operations is sustainable.
2. Increase business efficiency
It’s no secret that businesses that operate optimally tend to reap higher revenue and profits. Therefore, your MSP needs to have a system in place to avoid reinventing the wheel.
To drive efficiency and MSP revenue, look to these three: process optimization, process improvement, and automation. Together, they provide a framework that enables an MSP to streamline business processes for optimum efficiency. These help to eliminate manual tasks, reduce labor costs, and manage day-to-day operations.
3. Focus on your ideal client
MSP is a service business; therefore, customer satisfaction is vital to success. Understanding your customer and their needs enables you to build a value proposition that uniquely addresses them. When you know your customer, you’ll be able to create a compelling narrative around their buyer persona.
Hence, you can craft a well-thought-out customer value proposition (CVP) or unique selling point (USP). Focusing on customer satisfaction will help expand your market and improve MSP revenue.
4. Upsell your services to extract additional MSP revenue
As your customers’ businesses grow, the services they need will likely expand too. People generally buy more from companies they trust. Leverage the trust you’ve gained from your existing customers and position yourself to provide these extra services.
5. Structure your sales process for continuous MSP growth
Streamline your sales funnel to move decision-makers quickly through the sales process. Don’t allow prospects to fall through the cracks. Prioritize regular communication with decision-makers so that your company stays top-of-mind even before you bid for services.
Help your sales process by keeping your offerings simple and tiered. Aim for the G-B-B strategy of “Good-better-best.” This strategy provides a clear comparison for your customer and a path to upgrade their services.
6. Invest in marketing your MSP business
All products don’t automatically sell themselves, so you have to get your business in front of the right people. Marketing is how you get the word out to your prospective audience and customers concerning the service you provide.
Besides, you have lots of competition, so you need to separate yourself from the herd. Therefore, developing a marketing strategy is necessary to attract clients and keep your business top-of-mind for prospective customers.
7. Build a lead generation machine
Websites are a great lead generation asset. Use landing pages and websites to generate traffic using organic search (leveraging SEO techniques) and paid search (Google ads).
Ensure to follow up on web visitors, qualifying those that are actual prospects. Overall, make a concerted effort to turn potential leads into paying customers.
8. Add high-demand solutions like cyber security
Data breaches and ransomware from hackers have impacted many industries. As a result, organizations want to know their proprietary data and business secrets are safe. Therefore, your MSP’s revenue will experience a big boost by adding in-demand services like cybersecurity to your offerings.
Even better if you can manage to make your MSP a one-stop-shop for your clients’ data security and storage needs.
9. Upgrade and maintain cutting-edge technology
Information technology is a fast-moving and highly innovative field. Technologies that used to be cutting-edge just a few years ago have quickly become mainstream—even obsolete—very quickly.
For instance, most businesses now expect MSPs to provide some form of cloud technology services based on subscription revenue. Hence, to be successful in this era and not be seen as a laggard, your MSP should focus on having the latest technologies in your service delivery.
10. Schedule routine client meetings
Open communication with customers shows you care about them beyond making money off of them. Therefore, provide regular opportunities to interact with your customers through meetings.
Your MSP business then has the chance to grasp the granular details of customers’ issues and generally understand them and their needs better. The frequency of meetings is less important than the fact you have a regular forum for open communication.
Start growing your MSP revenue today
Running an MSP can be difficult, but the biggest challenge is making the business scalable and profitable through revenue growth. However, there are several pathways to achieve revenue growth victory.
The 10 tips provided here are an excellent way to start—they’ll go a long way in helping your MSP realize your revenue increase objectives.
Contact Goolash today to discuss how we can help you streamline your MSP billing for increased revenue.