Isn’t it a funny word? When you think about the word, “sticky” it brings up images of both gum on your shoe and the Carmel that I baked into my brownies last night. Of course, if it were July and not February, it might make you think of hot, damp or muggy weather. Of course, that weather might also be described as sultry or even tantalizingly spicy.
What does sticky mean to your MSP? MSPs can build revenue in two ways. Traditionally, MSPs supported their End Customers’ on-prem infrastructure, selling them equipment and other technologies along with their technicians’ time. But, today’s landscape makes this scary. There are so many competitors selling the exact same technology and services that MSPs often have to cut the margin to the bone just to win the business. This sets up the MSP to be strapped for cash, and can cause them to perpetuate a cycle of taking projects with tighter and tighter margins just to stay in business.
It’s a rat race that no MSP needs to be in. Instead, your MSP needs to build a business model that includes sticky customers bringing in monthly recurring revenue (MRR). The word is sounding better all the time!
Quite simply, the cloud creates sticky customers. Once the End Customer is transitioned into the cloud, they stay: for practical reason, they no longer have any server infrastructure and replacing it would be costly. Additionally, they may very well have converted that server closet into office or storage space. How nice is that, no longer paying rent to office servers? But it goes so far beyond practicality! Quite simply, End Customers love the benefits of the cloud! They love its accessibility, the security, the reliability and paying for IT as an expense. It’s just easy.
Monthly Recurring Revenue (MRR) | Your cloud solution will grow your End Customer base while giving you a consistent recurring revenue stream. Imagine having enough MRR to cover all of your monthly expenses…every month…without end! Then, imagine all the way you could spend your time growing your business without having to worry about keeping the lights on: add another office, hire more sales people, even develop that product you’ve been dreaming of since college.
Drive Customer Loyalty & Satisfaction | The cloud is good your End Customers too. It will help them drive their own competitiveness and success. It brings them both cost savings and an easier to manage IT department. All of this drives them to be loyal to you, long-term. What a nice symbiosis: you help them succeed, and they in turn help you grow your MSP.
Close Faster & Sell Longer | No doubt, you’re tired of the 6-month sales cycle. The cloud has a faster sales cycle. Bundle your services, sell on value, and let the recurring revenue flow. With the cloud, you won’t have to wait for the CapEx conversation or the customer’s IT to figure out when they can disrupt their company to install the new solution. Our JumpStart deployment solutions can have your End Customer up and running in a matter of hours.
MSPs need to start viewing the future from the eyes of their End Customers. If you don’t start offering a cloud solution to your End Customers, someone else will. By turning your End Customers into advocates, you may just find yourself sitting back and collecting a long-term revenue stream from very sticky customers. Ahhh…sticky…
Keep your end customers sticky – reach out to CloudJumper, the industry-leading cloud computing solutions provider, right away by calling firstname.lastname@example.org or 844.645.6789. Follow us on social media: Twitter | Facebook | LinkedIn.