We are always on the lookout for tools and tips that will help you grow your business.
This month, our friends – the sales experts at Managed Sales Pros share dynamite insight on how to boost your profitability through security sales. Let us know what you think.
The hottest of hot initialisms right now is MSSP. With the market amalgamating rapidly, smaller MSPs are going to struggle to offer the same services at the same prices as their goliath counterparts. How are these smaller IT firms going to differentiate themselves in a market where “everybody has that” and “we’re happy with our current vendor” is the most common sales objection?
The short answer is security. As a stand-alone offering, or bundled into your current solutions stack, managed security will be the new managed services, and it’s time for MSPs to sit up and pay attention. Are you looking for a unique value proposition and a way to differentiate yourself? Now is the time. Security solutions can be stand-alone thin wedge offerings, and they can give you the edge that you need to compete against the larger (and hopefully less personalized and boutique experience focused) IT companies in your market.
There are two types of sales cycles. Displacement, meaning you’re bumping out (more likely waiting out) a competitor, and disruption; which assumes the product or service hasn’t saturated the market yet. Managed services is a displacement sale – most companies have their needs met currently by a real or perceived competitor. Managed security, however, is a disruption sale – and if you can get there first, you can hold your ground. Bumping an incumbent competent provider is very difficult. Get there first and you can own the market.
So, how do you create a managed security offering that will be attractive to your current and prospective clients? I encourage you to consider starting with an offering that doesn’t need to dovetail into any other solutions. A thin wedge solution can be sold stand alone, without the need to unseat your competitor or sell an entire “stack”.
Taking the sales process one step further, once you’ve defined “displace” or “disrupt” for your offering, you then decide how to build our your sales pitch. You can pitch in two different ways. First, you can make a suggestion: “Most law firms experience x, are you also experiencing x?” Alternately, you can ask the prospect to define what challenges they are experiencing, and then figure out what solution in your stable will solve the problem. I believe the second approach is more effective, and also gives you the opportunity to present your highest value offering (managed services) first. The first approach should be used once the company has clearly identified that they already have a managed services provider that they don’t plan to leave any time soon. This is wedge selling. Lead with the most profitable solution you sell, follow up with the thin wedge to keep the prospects interest, to keep the door open for the next conversation, or to begin winning business from a prospect one solution at a time, with the full intention of slowly building a relationship and winning all of their business.
Security solutions will allow you to cross-sell, up-sell, and win new business – start exploring some of the new vendors hitting the market – the only thing you have to lose is a little time, and you’ve got a lot to gain – monthly recurring revenue in particular.
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