In managed IT services (MSP), customer lifetime value is vital to long-term success. In order to increase customer lifetime value, you need to increase the average revenue per customer through upsells and cross-sells. One of the best ways to do this is by marketing value-added services to your current clients. Not only will this improve your retention rate, but it can also lead to increased revenues and margins. This article will give you five ways to upsell value to your existing clients and increase your company’s revenue.
1) Assess Your Client’s Needs
Before you can successfully upsell a managed service, you need to understand your client’s current pain points and needs. This can be accomplished through regular check-ins, surveys, or even informal conversations. Once you have a good understanding of their challenges, you can begin proposing solutions in the form of improved managed services.
2) Educate Your Clients On Managed Services
Many business owners still see IT managed services as a necessary evil at best, similar to insurance cover. It’s up to you to show them how managed services can save them time and money and boost productivity in the long run – not merely providing a safety net when things go wrong. The key is to focus on the value and ROI that you’re providing, not the monthly retainer price.
3) Create Bespoke Packages Based On Value
Once you’ve identified your client’s needs and explained the benefits of your managed services, you are in a strong position to create bespoke value driven packages for your customer to improve retention and revenue. Focus on specific features, services, and targeted discounts to address your client’s known work-based challenges.
4) Bundled Services
One way to sweeten the deal for potential upsell customers is by offering a discount for bundling multiple services together. This not only saves them money, but it also makes it easier for you to upsell additional services to the same customer in the future by upgrading their package to include new services.
5) Offer Flexible Pricing And Creative Discounts
Don’t be afraid to get creative with your pricing structures when selling managed services to existing customers. Many MSPs find that offering subscription-based pricing models (with generous discounts for upfront payments) is an effective way to close sales and increase revenues from upsells.
6) Provide A Free Trial Period For New Services
Another great way to entice existing customers to spend more is by offering a free trial period for additional managed services, followed by a discounted ‘loyalty rate’. This gives them a chance to test out your offerings before committing to a long-term contract.
Quotation Training Solutions From Quintadena
At Quintadena, we offer a variety of quotation training solutions that can be customised to meet the needs of your business. From e-learning courses to on-site workshops, our quotation training solutions are designed to help your sales staff understand the intricacies of the quoting process – with a special focus on customer service and upsell opportunities – so they can provide accurate and relevant quotes to your customers. Contact us today to learn more about our quotation training solutions and how they can benefit your business.
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