The 5 things every MSP and Dev House should do to win new customers.

While interviewing top Managed Service Providers and Development Houses we discovered they all had one common challenge – Winning New Customers.

As small and mid-sized companies you are the hardest hit by this challenge. Typically founders have deep technical skill, and given the opportunity are able to transform the IT environment for their customers. As it so often happens with every small business, the founders are required to broaden their focus and handle day to day admin, HR, legal, accounting, support, R&D and finally marketing and sales, all while actually delivering on the service they provide to customers. This creates the dreaded sell/deliver roller coaster which places significant burden on the business and it’s people.

We challenged sales guru Paul Slade, one of Go2Cloud’s founders, to come up with a solution.

Here are 5 things that every MSP and Dev House should do to win new customers:

1) Be ruthless when defining a target market.
Typically small and mid-sized business owners are overly optimistic when segmenting their potential target market. They confuse the Total Available Market with their actual Served Available Market instead of hyper targeting a focused Target Market who will be their most likely buyers.

It’s critical to take the time and be realistic about who you’re actually targeting, before simply launching a new website and pitching anyone who’ll listen. Be ruthless in your segmentation.

2) Qualify, qualify, qualify.
Even when reaching a prospect in your target market it’s critical to ask the right questions to qualify the opportunity in detail. Qualifying early in the sales cycle ensures that your team isn’t wasting valuable time chasing a prospect that simply hasn’t figured out what they want to buy yet (or worse, whether they should buy at all). It’s assumed that sales people say yes (a lot) but the best sales professionals know when to say no, and walk away from a bad opportunity.

Learn whether your prospect has a stated business need for engaging with your company. Ensure they’ve set aside budget and understand their timeline for making a decision. Focus your sales effort on customers that are ticking these qualification boxes.

3) Prove to your prospects that they can trust you.
Given how much the modern business relies on IT to function effectively, it’s no wonder that your prospects would be nervous about handing over the management of their entire environment to an outsourced provider. It’s critical for MSP’s and Dev Houses to establish trust with their prospect early on. There are a number of ways to do this. For example, showing customer references, setting up calls with satisfied customers, establishing technical skill levels and competencies by introducing the team, conducting a detailed audit on risk (Note: Be sure to qualify well first, as this can be costly) and back yourself with solid SLA’s and guarantees.
4) Make good business sense for your prospect.
Ensure that your presentations and proposals really speak directly to the business need. It’s so easy to get caught up in the great tech that your company uses to support their customers, but it’s less important than talking to the businesses objectives. If you’re there is any doubt, the MSP or Dev House should ask themselves “How does this impact the bottom line for the prospect?”.

Your service should either be aimed at increasing profits, improving business efficiency and reducing business risk.

5) Clear Pricing Strategy
Pricing can become complex for your prospect. Try to keep pricing as clear and simple as possible. Your prospect is usually expecting to grow their business at some point. This means more staff and an increase in service delivery costs (among others).

Help make that journey predictable for your prospect.

Meet Paul Slade

 

                                   
 

Paul has won numerous awards from companies like Microsoft. He’s is a trusted mentor and coach for sales professionals and teams from some of the largest and most respected IT companies in the world.

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