MSP sales won’t increase in terms of revenue generation automatically. If you don’t have steady rates of increase, your business may not continue to function. You need sustainable means of ensuring economic and financial “homeostasis”.
Growth should be part of your bottom line. Sales are core to ensuring growth is continuous. Following are several metrics you should familiarize your team with to help optimize your existing processes:
How Many Stages Are in Your MSP’s Cycle?
MSP sales cycles are usually larger than most other businesses. What you’re providing is likely going to be core to the needs of your clientele for years, and can end up costing millions of dollars over a few decades. They’re looking at working with you as an intense partnership. Accordingly, sales takes longer. You’ve got to court them, and you can’t always be pushing for a close. You’ll need to be informative, touch base, follow up, check in, and gently pursue the lead to conversion. Defining this with measurable cycles in various stages helps you refine your outreach.
Average Time Prospects Spend in Stages
Introduction could be a luncheon or it could be a business card. It could be a courtesy call or an email. Do you have a product which you can pitch swiftly and convincingly to your target demographic without being promotional? Do you have a competitive value statement? What’s your upsell game like after conversion? How you time it can open you up to further selling opportunities.
The Average Profit of Conversion
You’ll need profit margins requisite to the length of the buyer’s journey through your sales cycle. Determine the average profit from sales and average increase through upsells of existing clients over time. This information helps direct further operational enhancement.
Optimizing Sales Technique
You need to focus on gathering information about operations to design relevant MSP sales strategies. Know average profits, stages, and stage times to help round out forward success in client conversion.