As a managed services provider (MSP), you know how important it is to provide reliable, secure, and thoughtful IT solutions to your customers. But just as important as your service offering is the way you sell your services. Without careful planning and strategy, you risk running into pitfalls that slow growth and, at worst, damage your company’s reputation. In this blog post, we will discuss some of the most common mistakes MSPs make in the sales process and effective ways to avoid them.
Mistake #1: Trying to be everything to everyone
An easy mistake for MSPs – especially those just getting started in managed IT – is bending to cater to every possible customer and industry, without having a clear focus or niche. This can lead to a number of issues, like spreading your staff and services too thin, offering unspecialized or irrelevant solutions, or losing your competitive edge.
The solution: Focus on what you do best
Pick a niche and grow your expertise around it. Are there specific industries or types of customers you’ve had an especially successful relationship with? Is there a type of customer or business you strive to work with? By choosing specific areas to specialize in, you can offer tailored solutions that address the unique needs and challenges of your customers.
For example, if you are an MSP for manufacturing businesses, you should know the common problems and opportunities in the manufacturing sector – like network outages, downtime, automation, and compliance – and you should be able to offer solutions that optimize these aspects and add value to your customers.
Finally – and we cannot emphasize this enough – do not walk in with a discount ready. Hone your offering and be confident in the value it provides. Your demonstrated domain knowledge and credibility within your chosen areas of expertise will help your MSP stand out from the crowd.
Mistake #2: Relying solely on traditional sales methods
Another common mistake that MSPs make is relying solely on traditional sales methods, such as cold calling and emailing, without exploring other channels and strategies. Of course, cold calling and emailing can be effective and are worthwhile, but to distinguish yourself from your competitors in managed services, traditional sales methods should be supplemented with other tactics, too.
The solution: Diversify your sales channels and strategies
Instead of conducting your prospecting and outreach at random, aim to build relationships and trust among your target audience. You can do this by:
- Creating and sharing educational content your audience would find valuable, like blogs, e-books, webinars, and case studies. Information like this builds trust by showcasing your expertise.
- Leveraging social media, such as LinkedIn and Facebook, to connect with and engage prospects and influencers in your niche. Social media doesn’t have to require a lot of time; even a limited posting schedule can be effective, as long as it’s consistent.
- Asking for referrals and testimonials from your existing customers and partners. This may feel daunting, you may be surprised by people’s willingness to help when asked. You can sweeten the request by coming up with ways to reward and thank your fans for their loyalty and advocacy.
- Joining and participating in industry associations, events, and forums, where you can network and showcase your thought leadership. There are plenty of opportunities that require a fee to sponsor or participate, but you should be able to find many no-cost ways to get involved as well.
Related: How To Get Started with Email Marketing: Five Steps for MSPs
Mistake #3: Selling products, not a service
A third common mistake that MSPs make is selling products – such as hardware, software, and licenses – rather than selling services, like managed network, security, or cloud. This can lead to commoditization, price wars, and low margins.
The solution: Sell your service, not your products
In many cases, technology on its own is not unique. Countless vendors may sell the same or similar IT solutions, leaving little room for distinction based on technology alone. As an MSP, you are not just selling technology – you are selling your expertise, reliability, and value-added services around the technology. Your sales proposition should emphasize how your management of a customer’s IT environment can help them achieve their business goals, like improving security, reducing costs, increasing productivity, and enhancing customer satisfaction.
For instance, instead of selling a firewall, sell a holistic managed security package that includes firewall installation, configuration, monitoring, maintenance, and support. And don’t assume your customer inherently understands the value of your offering. Spell out the benefits to their business; in this example, your customer can expect added protection from cyber threats, ensured compliancy, time and cost savings, among other advantages.
Mistake #4: Not understanding your customers' needs and pain points
Another sales misstep for MSPs is not taking the time to understand their customers’ needs and pain points and offering inappropriate solutions as a result. The discovery stage of the sales process may seem like an obvious necessity, but it takes time – and when competing deadlines and goals come into play, shortcuts become tempting. If you’re not listening to what your customers are struggling with, it’s unlikely you’ll be able to pitch a compelling solution.
The solution: Ask questions, and build solutions around the answers
Before you quote from a standard rate card, conduct a thorough exploration of your customer’s current situation, challenges, goals, and expectations. If you're not able to gather specifics, try imagining yourself in the seat of the customer and think about what roadblocks their business may be facing. How can your MSP help them overcome those roadblocks? If you can propose a solution that addresses specific customer needs, the buyer will be able to see the value of your services more clearly.
For example, if your customer is a law firm that needs to comply with data privacy regulations, you should not just offer cloud backup service, but rather a managed compliance service that includes things like cloud backup, encryption, auditing, reporting, and training. You should also highlight how this service can help your customer avoid fines, lawsuits, and reputational damage.
A key part of customer discovery is talking to company decision makers about the things that resonate with them – the specific areas of the business they’re concerned with. A CEO or CFO, for example, may care more about how your solution can save their company time, money, and resources, while a CTO or CIO may want to hear more about the technical details of your offering and the expertise of your team. It’s imperative you ask questions – and listen to the answers – to keep your customer’s attention and propose an effective solution.
Mistake #5: Neglecting your prospects and customers
A fifth common mistake that MSPs make is failing to follow up with and nurture customer relationships. It’s easy to see why this happens; we're all pulled in a million directions all day long. But customer follow-up can be the single determining factor that leads to a closed deal versus one that’s lost. A weak relationship-nurturing strategy can lead to missed opportunities, eroded loyalty, and ultimately, lost revenue.
The solution: Communicate with your prospects and customers – then do it again
You should not just contact your prospects and customers when you want to sell something. Instead, maintain a regular and meaningful communication cadence with them. You can do this by:
- Periodically sharing useful resources and information that is relevant to the customer and their market.
- Asking the customer for feedback and reviews and addressing any issues and concerns promptly and professionally.
- Offering relevant services and upsells, and demonstrating how the customer can get more value from your solutions.
- Paying attention to the customer’s achievements and milestones and recognizing them with messages or small gifts.
Statistics show that 80% of sales require five follow-up calls – yet 48% of salespeople never make a single follow-up attempt, and 44% of salespeople give up after one follow-up call.
By creating some simple structure and organization around your sales follow-up processes, you’ll be able to build trust among your prospects, boost customer retention and loyalty, and generate more referrals and repeat business.
Avoid these sales process mistakes by working with a master MSP
Selling managed IT means keeping a lot of balls in the air, and even for a seasoned sales professional, it can be a complex process. Collabrance supports MSPs in all areas of business, including sales, marketing, and solution support. To learn more about how Collabrance can help enhance your MSP's operations, visit our website, or get in touch with a member of our team today.
