10 Oct Produce More Revenue with Assessments
While consistently increasing recurring revenue and winning new clients can be daunting for MSPs, there are a few effective strategies you can adopt to make the process easier.
One way is to leverage IT assessments to attract new business and projects. Use under-the-skin IT assessments to provide prospects with hard data about risks embedded in their IT environments to justify why they need help.
Here are three ways to produce more revenue with assessments:
Client Acquisition
Assessments are effective in acquiring new clients since you can show prospects facts about their IT environment like a doctor uses blood test results to draw attention to a medical problem. MSPs regularly use assessments to edge out other MSPs, sell Co-Managed IT services and upsell existing customers.
Projects
Government officials, school district administrators and executives at large businesses are used to paying big money for studies where the deliverable is a report that guides their decisions. You can charge a handsome amount for IT assessments and use those findings to sell remediation projects and managed services.
Get clients to focus on the value of the information itself. Quantify risks and help them make decisions to prevent expensive and embarrassing service interruptions and possible compliance violations.
A local school district contacted an MSP regarding tech problems they were facing. The school district superintendent was frustrated and needed help since he didn’t have answers to key questions about the district’s IT problems.
The MSP suggested an assessment while highlighting the financial benefit in identifying the problems that led to the district’s E-Rate funding application rejection. This meant up to a million dollars in cost justification, allowing the MSP to quote $20,000 for the assessment. The superintendent immediately sealed the deal.
The assessment identified cybersecurity and compliance issues and created a roadmap for the district to address its problems. The MSP also provided a proposal for remediation services and ongoing managed services that resulted in over $100,000 in projects and over $10,000 per month in recurring revenue. The district benefited by fixing its E-Rate problems and qualifying for over $1 million in federal subsidies. The MSP then sold its services to two nearby districts that heard about the results.
Assessments-as-a-Service
Consider offering independent assessments to businesses with their own IT departments, but who don’t want to become managed services clients. Target hospitals, school districts, local and county governments, banks, non-profits and larger private businesses by offering to provide internal IT staff with monthly reports they can use to address cybersecurity and compliance gaps. Help them prepare for unexpected audits, investigations or lawsuits. Reassure them that you aren’t trying to replace anyone, but rather providing them with detailed reports to help them stay secure and compliant.
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