MSP marketing that sells to existing customers is more likely to be an effective investment because you’ll see a higher return. There are a number of reasons for this:
• The ice has already been broken
• Trust has already been established
• You understand their needs so you can make appropriate suggestions
• Expanded retention comes from cross-selling
The Ice Has Already Been Broken
MSP marketing which concentrates on existing customers is working with a group of clients who’ve already been introduced to your company. By the time you cross-sell, the clients should be “old friends.” Certainly, you don’t want to start cross-selling in a ubiquitous right from the beginning. Rather, you want to ease your way into it. You want your customer to have learned that you are trustworthy, and then you’ll likely be able to convince them of the necessity of whatever services you’re selling.
Trust Has Already Been Established
Since you’ve established trust, generally the only reason an existing client will refuse additional services is if they’re on a tight budget. So design the clients you intend to cross-sell to by their likeliness to purchase. The more affluent the client is, the more likely they’ll say yes. Though remember: there are exceptions to any rule. All that being said, if you have any client and continuously provide them good service (and that which you’re up-selling has real value to them), you’re likely to secure a sale.
You Understand Their Needs So You Can Make Appropriate Suggestions
When you’ve broken the ice with a client and established their trust through continually trustworthy service over a long period of time, then it’s easy to suggest new service innovations. You know there may actually be aspects of these clients’ operation where a new device, new software, or a new innovation in service delivery can actually save them money. This means you can sell them by saving them, which further solidifies your relationship with them. Additionally, you know how much they have used of existing services, and whether new developments would better suit their needs.
Expanded Retention Results From Cross-Selling
When you’re saving money with a client who you’ve broken the ice with and established trust with, you’ll get better loyalty should you cross-sell them with services that ultimately end up conserving client resources, or expediting their own operations. Cost-effective, sustainable networks are key. So if, as an example, you had a client using an internal data service for what your MSP provides via HaaS or SaaS applications already, you can save them tens of thousands of dollars a year just by offering to help them make the cloud switch. You make money on a regular basis, they save thousands of dollars, everybody wins.
Truly Better Than Other Means of Marketing?
Well, you’re going to get high ROI for cross-marketing, but you, unfortunately, can’t rely on this method of salesmanship entirely. Even if you’ve got a dozen excellent customers that allow you to comfortably pay a staff of ten for thirty years, one of those companies may very well implode. During the 2008 financial meltdown, one of the top five investment banks on Wall Street collapsed. It just doesn’t get much higher than that, as far as companies go. If you want to be secure, you’ll always need to be acquiring new clients, because there’s no way for you to know the future. However, the better you maintain the clients you’ve attained, the longer they’ll remain.
Learning to Cross-Sell Is Very Good For ROI
The longer your clients remain, the more successful your operations. So there are definitely worthwhile advances to cross-selling between them, and it makes sense to put those advantages to your benefit.
MSP marketing has many fronts which must be considered in order to make it effective. You want to get new clients, you want to maintain those you’ve already sourced, and your MSP must always be on the cutting edge to lend the marketing proper effectiveness. Certainly, this isn’t the only way to lend that credulity, but it’s generally a good idea. Apply principles like these which fully utilize the available options, and you’ll definitely see ROI-rich marketing efforts.