Selling supplemental services to SMBs may not sound particularly glamorous, however the provisioning of add on services that are linked to your managed services platform, such as level 1 support, assistance with help desk tickets or remote monitoring, can be incredibly lucrative for the MSP.
In order to reduce IT costs and streamline IT processes, small and midsize businesses (SMBs) are increasingly looking to invest in services which will help them better manage their IT resources without having to invest in additional on-premise man power. Savvy SMBs are quickly realising that service automation and help desk ticket assistance are essential, particularly as, for these smaller businesses, system downtime can directly affect the bottom line.
Smart MSPs also know that supplemental services are one of the biggest revenue earners, even when sold in small quantities. In some cases, these add on services can provide the MSP with almost a 100 per cent mark up. With this in mind, why aren’t more MSPs pushing supplemental services?
Unfortunately, many MSPs are not yet at a point where they can meet the customer’s demands. Most SMBs are looking to invest in a reliable, always on service that functions at an optimum level all times of the day or night, including weekends. In reality, a lot of MSPs find that out of hours calls are too disruptive, and that resources are stretched too thin for them to be profitable.
More surprisingly though is that a number of MSPs are yet to realise the value of building strong, trusted relationships with smaller businesses. Once a bond is established, these businesses are less likely to move over to a competitor, as they will trust your insights and seek advice from you on which additional services they should be looking to invest in next. The MSPs are the expert and can push services that will streamline the SMBs business processes and drive huge revenue for the MSP.
In order to offer your customers the very best portfolio of supplemental services, and leverage the subsequent benefits, the smart MSP knows that they need to call in additional help. The MSP should look to partner with a vendor that already offers both proactive and managed service packages, and is also able to offer their assistance to the IT department. This in turn will give you enough flexibility to adapt to the unique level of service that your customer requires, whilst also offering a regular, base level cost that can easily be marked up on a case-by-case basis.
It is important to remember that SMBs are looking for value when purchasing IT services, so offering a fixed monthly fee, which will only fluctuate when a bolt-on service is used, is the perfect way to upscale a business relationship. This is an ideal win-win scenario, where the client has access to a vast range of essential services, without the hefty price tag associated with an all-encompassing, blanket offering, and the MSP is able to make a profit every time an additional service is used.
In addition to increased revenue, partnering with a vendor in order to offer a wider range of supplemental services can also lead to:
- Increased customer satisfaction and subsequent word of mouth recommendations
- Growing your client and business portfolio without the commitment of having to maintain a 24/7 service delivery model
- Maintaining and developing recurring income streams
- Managing technical admin resources more economically
The key takeaway is that, while supplemental services may not be the most glamorous of resources, these services are essential to numerous SMBs who require additional support but may not have the resources, revenue or need for complete package solutions.
By tapping this market, the MSP is opening the door to a rapidly growing number of opportunities, resulting in increased profitability, improved customer satisfaction and the development of a trusted, mutually beneficial the business relationship.
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