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How much revenue are the MSPs losing by skipping bits of communication with their customers?

Posted by Joe Schiavone on Jun 6, 2019
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What happens when you bring on a new service or partner with a new vendor to boost your business?

Every MSP understands that to keep up with the customers’ needs nowadays, they must reach beyond their usual scope of service and add more technology choices to their portfolio. Finding new technology partners isn’t an issue because every vendor today wants to work with MSPs! But signing up with the vendor isn’t enough to get the sales going. In the last month, we have been interviewing our own MSP partners to find the reasons why the pipeline is not growing as fast as we all want. Here’s what we found. 

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MSPs expand their horizons but keep the customers in the dark.

On average, established MSPs with a stable, good size customer base receive 3-4 requests a month to help customers get their network ready for the newly purchased cloud phone system. This was confirmed by our partners who DO have cloud phone systems in their scope of services. It is obvious that customers who place such requests are not aware of this offering by their long-term service provider.

What do these 3-4 requests a month mean to the MSP? Let’s crack some numbers:

  • The average price per seat in the UCaaS market is $23.00 per month
  • The average monthly commission the MSP can make from a UCaaS deal is 20%
  • The average UCaaS contract is 36 months
  • Most of the UCaaS vendors offer 3X-6X one-time SPIFF
  • Many deals may include add-ons and contact center licenses
Considering these numbers and the average size of the customer being 40-100 seats, just three calls like this result in missed opportunities to make almost $55K in annual revenue! If you miss three or four of them every month… well, do the math.

How to communicate with the customer about the new service?

Here are a few essential steps the MSP needs to take to announce the new service:

  • Update the website. It’s better to create a separate webpage for the new service and make sure it’s accessible from the main menu. It will significantly improve the user experience and SEO.
  • Send an email announcement. In collaboration with the vendor or by yourself, create an email blast or a short email campaign, or just include the news to your regular newsletter for the customers. The best practice is to send at least 3-4 emails over the period of one to two months to make sure the news is synced with all customers.
  • Add a note to the outgoing papers. If you regularly send renewal documents, invoices, reports, or other papers to your customers, add a short note about the new service to it. It will serve as a gentle reminder and ensure the customer will think of you first when they need such services.
  • Add a note to your email signature. This is similar to the previous step, but has a higher frequency of contact. If not the entire company, it at least makes sense for the customer service department, account managers, and sales reps to have such note in their email signatures.
  • Add it to your IVR. This is another great tool that a lot of companies miss. Whenever your customers or prospects call you, make sure that the auto-attendant plays a record about your new services.
  • Add it to the phone call script. This is probably the most important and most effective of all suggestions. Make sure your sales reps, customer support reps, account managers, and other employees for whom it makes sense mention the new services every time they talk to the customer on the phone. 

Be prepared for detailed conversations.

If you are consistent with the best practices we suggested in this post, you inevitably will get requests and questions from customers and prospects. Make sure you have the answers ready and have access to your partner or vendor’s calendar in case you need to schedule a demo or a detailed discovery call with one of the engineers.


These simple suggestions will help you make the new services profitable in no time!

Topics: Tip of the Month, MSP