How to Become a Successful Managed Service ProviderRevisit Your Lead Generation Tactics. Lead generation is the way you attract potential customers by initiating their interest in your services or products. MSPs must ensure service excellence by relying on artificial intelligence (AI), hyperautomation and advanced data analytics to deliver managed services at scale, reduce repetitive work and enable data-driven decision-making. Service excellence will also help MSPs reduce customer churn, increase retention rates, and expand wallet engagement among their customers.
A recent survey by research firm EMA revealed that 64% of companies use between four and 10 different monitoring tools. Knowledge of managed service providers has grown among customers, from small and medium businesses to enterprises. MSPs asked to provide services such as remote monitoring and management, cloud consulting and migration, and cybersecurity. The increased visibility of MSPs and their recurring revenue streams have made them an attractive target for investors.
Sharing business objectives and goals is essential to establishing a successful MSP alliance. Based on that information, a service provider can also develop an ideal customer profile and then focus its sales and marketing activities in that direction. Other companies use a combination of network performance monitoring, IT service management, and CRM products, for example. RMM software, the technological cornerstone for most MSPs, enables service providers to remotely manage their customers' IT infrastructure.
In addition to that, subscription-based pricing (discussed in detail in the Managed IT Service Pricing Models chapter) makes an organization's expenditures on outsourced business processes and functions are predictable, helping to keep the organization's budget under control. Ensure that your services form a quality package and that you know how to tell your customers exactly how useful these services are for business processes and operational efficiency. Selling managed services is very different from selling technology or ancillary services (support, field, professional services). A service provider can expect to transform its business model every few years and must change its service mix on an ongoing basis.
Future growth prospects are strong, especially as more customers rely on IT to deliver products and services in a rapidly digitizing world. MSPs that successfully launch an initial service line are prepared to offer additional offerings, from IT strategy consulting to backup and recovery. MSPs can provide the required amount of services and support when needed and manage any IT issues that arise along the way. IT has taken over most companies, and the level of focus required to manage IT infrastructure sometimes results in an organization not focusing on its business objectives.
So where do you start? Follow this seven-step approach to learn how to create a managed services business. George Humphrey is the vice president and general manager of research and advisory services and delivery at TSIA. Managing an MSP relationship early on with the right mindset can deliver tremendous value, says Bob Lamendola, vice president of infrastructure and engineering services at digital services and information management provider Ricoh USA. Breakdown service providers are fine for organizations that don't need much IT support, but those who do need it will end up paying much more than what MSPs charge for the same services if they opt for a breakdown repair service provider.
Service providers combine industry-specific knowledge with technological expertise to ensure continuous availability of business services. .