If any managed service provider (MSP) is going to survive, it must learn how to maintain a steady stream of income. A monthly recurring revenue stream (MRR) allows MSPs to expand their business further, giving them the funds they need to launch new technologies for their customers. So, what can MSPs do to increase their MRR to make this a reality? This short guide from ServiceTree is going to show you how.
Explore Add-On Services
Do you have a long list of happy clients? If the answer is yes, you will tend to find that your loyal customers are willing to spend more money on the services that your business provides. Therefore, you must consider offering add-on services to increase that all-important MRR. The additional services should complement what you already offer. Don’t be afraid to ask your customers what types of services they would like to receive. Once your new add-on services are in place, track their success using KPIs. Click here to learn more about vital KPIs that all MSPs should monitor.
Delve Into Security
Most MSPs will offer basic monitoring and management services. However, with so much competition out there, you need to explore areas that will make your business stand out from the crowd. Offering your customers additional services that others can’t – will help you increase your MRR, so you are a front-runner in the industry. Security has become a requirement that many customers strive for. Additional services like email security and awareness training will allow an MSP to make additional profit. Security is a growth area and one that MSPs should home in on to help them generate recurring revenue.
Put The Customer First
We have all heard the saying – the customer is always right. Well, that might not always be the case, but MSPs should prioritize their clients if they want to increase their MRR. Listen to the services they need and explain why your services are essential. Do your clients understand why your services keep their businesses operational? If not, this is something that you should be reinforcing to them. If your clients understand that your services play an integral role in their revenue stream, they will keep returning to use your services time and time again. A loyal customer base means MSPs no longer have to worry about generating a steady income stream.
For an MSP to grow, they must understand the importance of automation and how it can affect your monthly recurring revenue. Tools like our Chrome extension for ConnectWise Manage are designed to improve your ticketing workflow to save your business time and money. This helps your team work more efficiently so more time can be spent on bringing in new clientele. You can start your FREE 30-day trial here. Automation is vital for increasing MRR as it helps MSPs free up valuable time to use on other areas of the business that need attention. You will find that your business can now expand without hiring new team members.