One of the biggest concerns for MSPs is how to improve their sales. Boosting monthly recurring revenue is no easy task, and many companies don’t have the sales expertise to do it alone.
Most don’t even have an idea of how much monthly recurring revenue they should be bringing in. What’s the threshold for success?
With the right process and lead-generation efforts, you could be growing your recurring revenue by thousands of dollars every month.
So, What’s The Problem?
If your sales numbers are flat or falling, there are a few challenges you may be up against. Maybe your sales team just doesn’t have the experience to be comfortable on their feet. Perhaps the MSP sales training you offer isn’t effective.
Another issue that MSPs regularly face is difficulty in getting new clients to make the move from their old IT solutions provider. Many businesses don’t want to disrupt daily operations by switching, or they’re in the middle of a project with their old provider and want to complete it before moving on.
There are many reasons why your salespeople aren’t bringing in revenue. Fortunately, you’re able to remedy these issues with some sales coaching steps.
Step 1: Reframe Your Prospects’ Perspective
First, you must overcome ambiguity over the sales process. When you talk to a prospect, they’re often unfamiliar with your IT solutions and the value of the investment. And, even when you work with current clients to maximize profitability, they may be hesitant to shell out more than they’re already paying.
As you evaluate and rework your process, center it around the following client statement: Our IT systems are fine now, so why should I pay this much? Reframe the sales conversation to highlight your value proposition and why it’s worth it to invest in improved services.
Discuss the true costs behind subpar IT solutions and illustrate how your services add significant value to their business. Make sure they leave the sales conversation understanding the true value of investing in your IT solutions.
If you reframe the way prospects look at what they spend on IT support and what they get in return, you change the entire sales conversation. You need to show prospects that investing a little more in the right support process impacts the big costs in their business, like productivity, risk and capital investments.
Step 2: Refine Your Lead-Generation Efforts
You’re capable of generating qualified leads. You just need to nail down your lead-generation approach. Ask yourself these questions:
- What are your lead goals?
- Do you have a plan to generate leads?
- Is there a process in place?
- Is someone accountable for lead generation?
- How are you measuring success?
Start by outlining your lead-generation goals in alignment with your business plan. Then, use the sales goal calculator to determine how many first-time appointments you need to make with prospects. Gauge your close rate and current average monthly recurring revenue to ensure that your goals are achievable.
Once you’ve set goals, evaluate where you currently are with leads. If you have a database or list of leads, categorize them by where they are in the sales process. Focus your resources on those leads that are furthest along in the sales process and most likely to sign with you.
Finally, identify where your leads are coming from. Are they primarily referrals or online discoveries? Are you connecting with prospects on social media? Are your marketing efforts reaching your audience? When you know where your leads are originating, you have a clearer perspective on which avenues to nurture.
Step 3: Keep Your Team Accountable
Once you’ve set goals and evaluated your lead-nurturing process, you need to establish accountability checkpoints. Ensure that you have the appropriate resources – ones dedicated to both sales and lead generation – to achieve your goals.
When you’ve allocated your resources, focus on outlining sales coaching playbooks to make sure there’s uniformity across all teams. Track activities and results to determine what’s working and gauge your progress. If you’re not reaching your sales goals, it’s easy to return to the playbooks, assess your activities and determine where your efforts went wrong.
Sales is just one piece of the larger MSP training puzzle. Learn more about the common MSP sales mistakes and how you can avoid them.