Managed service providers (MSPs)
The problem is, there’s more to growing a profitable business than keeping current customers happy. As a business owner, you have to focus on your sales pipeline, which means honing your consultative sales process.
Here are three key steps to improve that process:
1. Rethink Your Idea of Sales
The vast majority of MSPs are technicians, which means they probably aren’t extroverts and might find “sales-y” behavior out of their comfort zone. MSPs often hesitate to focus on selling because they feel like convincing someone to trust them is disingenuous—or dishonest.
Most MSPs haven’t studied sales, so they don’t understand the fundamentals.
Selling
- Convincing people to buy something they don’t need.
- Pleading or telling tall tales to get customers to part with their money.
Selling is:
- Delivering value and explaining that value to people who need it.
- Convincing people of the value of something they need to keep them safe, productive, or competitive.
- Helping customers understand that the value of your solution is more important than the value of the dollar that they’re spending on it.
- Educating buyers on solutions to their business and IT challenges.
Being highly confident in the solutions you provide and communicating that confidence to prospects isn’t aggressive, it’s advantageous. Looking out for your customer is what it takes to be good at sales.
2. Get Social (Not Just Online)
MSPs typically enjoy a high level of trust with customers. The challenge is building similar trust with prospects, whether that’s a targeted customer base, around a geography, or within a vertical. Engaging in the following networking activities will enable you to build relationships with prospects, raising the level of trust on your way in the door:
- Build a Social Presence — The first thing you can do to expand your network is develop a social presence. Today, it’s standard practice to look up someone’s social media profile before
- Refresh Your Website — Next, take a fresh look at your website. Sure, you should talk about what services you offer, but the real differentiator is showing who you are. If your site doesn’t scream, “We are a trusted resource in our community/vertical/niche,” then you’re missing the most valuable function of your website. Chat with your network and grab a few testimonials. Ask your most satisfied customers to provide a quote or record a short video testimonial. Validation is what prospects look for on your website. They want to hear how you helped grow your clients’ business, that you’re a leading expert in your field, or even how you rescue cats from trees on the weekend. I’m not kidding; people want to know that you’re a contributor to your community or to the causes you love.
- Network in Your Community — Finally, nurture your current networks while building new ones. One connection or activity often can snowball; it has for me. For example, when I was a brand-new MSP in the relatively small town of Troy, Ohio, I signed up my bank as a customer. The bank president served on the technology board for the local school system, along with a few more of my customers. Because of their relationships with me, the technology board voted to make me the provider for all computers and networking in the school system.
After that, I began receiving tons of invites to participate in volunteer activities and serve on various boards. Volunteer service was not only gratifying, but I also was making connections and earning new business as a result. Later, I received the Troy Chamber of Commerce Robert Davies Young Man of the Year Award for making a difference in my community. From that point forward, I didn’t have to work nearly as hard to earn the trust of potential customers.
That said, you don’t have to be named your community’s “Young Person of the Year” to enjoy the same networking benefits. Every time you meet someone or engage in a new group, you’re gaining credibility. Becoming an upstanding member of your community—whether that’s geographically, vertically, or otherwise—helps to establish trust from the beginning.
If you only remember one thing, it’s this: Reference lists are antiquated. Your web, social, and community presence will differentiate you among competitors in today’s marketplace.
3. Focus. Focus. Focus.
To succeed, you must keep your focus. Many MSPs tend to get a sales pipeline going and then become distracted by addressing technical issues or learning new technologies. Instead, commit to managing the sales pipeline, follow through on proposals, and check in with prospects. This commitment is especially critical if networking doesn’t come naturally to you. The discipline will move things forward, and as you practice, you actually might become more comfortable in the role.
While sales might feel like a chore, and staying in your comfort zone feels great,
Don’t delay. The market is shifting; MSPs are getting bigger and more sophisticated to meet customer demand, and there’s more competition. You must be better than everyone else, but, more importantly, you must show it.
“Sell” is not a four-letter word, it’s the engine that drives your business. Make sure that engine runs smoothly, so you can arrive at your destination—growth and profitability.
Ted Roller is channel chief for Zomentum, creators of the first sales acceleration platform for the IT channel, and also CEO of GetChanneled, a channel sales and marketing consultancy and “virtual channel chief.” With technology sales and solution provider experience that spans three decades, Roller serves as an adviser for growing MSPs all over the world.
