How Do I Get Visitors to Engage with My Website?

How to Do I Get Visitors to Engage with My Website?

I mentioned this in my last Blog post. We live in a very “noisy” world and we need to grab their attention in less than a couple of seconds.

This is true for our website too. People don’t read website content any longer. When someone lands on your homepage they will start skimming the page very quickly to decide if they want to spend more time diving deeper.

“But, they went to my page because we met at a networking event!”

It doesn’t matter.

You have 5-8 seconds to capture their attention. Studies have shown that on a computer web browser people scan the webpage in a Z pattern. Left to right across the top, then down to the lower left and across the bottom of the page before they start scrolling down. We call this area before they scroll down “above the fold” which is an old newspaper term.

So, how do we grab their attention?

When they land on the homepage we have to instantly answer three questions…

1. What is the big problem you solve?
2. What will my life look like after I buy your product or service?
3. How do I buy? or What is the first step in the sales process.

Once we have them hooked and our visitor decides to scroll down we need to tell a story.

Not our story or the story of our company. We need to invite them into their story. A story of transformation.

One of the best ways to create your customer’s story of transformation is to use the StoryBrand methodology as described in Donald Miller’s book “Building a StoryBrand: Clarify Your Message So Customers Will Listen”. As a StoryBrand Guide I help MSPs implement the StoryBrand methodology to attract their ideal clients, get more meetings, and grow their business.

During this session I will provide a blueprint for creating a highly converting website homepage. He will share best practices on how to implement the recommendations from the great book, “Building a StoryBrand”. 

I will also provide live feedback and improvement recommendations for attendee’s websites during the webinar.

So, make sure you register here and be ready to get feedback on your website.

How to Make Managed Service Provider Marketing Better

Here are two ways to make your making better.

Managed Service Providers (MSPs) most often have really complex solutions. One challenge most people in the IT industry suffer is the “curse of knowledge”. The term was coined by Chip and Dan Heath back in 2006 and then they wrote about it in their 2007 book, “Made to Stick: Why Some Ideas Survive and Others Die”. Later, Lee Lefever described practical ways to combat the “curse of knowledge” in his book “The Art of Explanation: Making your Ideas, Products, and Services Easier to Understand”. I highly recommend both of these books to anyone who is marketing and selling IT solutions.

With the curse of knowledge, we know our product or service so well we have a difficult time imagining what it is like to not know it. This seems to be especially true with technical fields and IT professionals. Our technical and inside knowledge interferes with our ability to see the world from another person’s perspective. We wind up talking over the heads of our customers.

Remember we live in a very “noisy” world and we need to grab their attention in less than a couple of seconds. This is an area that many of my clients struggle with.

On a scale of 1 to 10, where 10 is the complexity we as MSPs live day in and day out, and where 1 is super simple, we need to be at a 2 or 3. Most of my clients have their marketing “dumbed down” to a 7 or 8 and our customers will be attracted to and understand messages that are at a 2 or 3. The good news is that after you work on simplifying the way you talk about your solution to your customer’s problem, customers will listen.

We live in a very distracting world. One of the other ways to cut through the noise is through story. Think about it. Until the printing press and the proliferation of books, story was the primary method of communication and passing on information. Story helps cut through the noise by organizing information in a way people will listen. Facts, figures, and features are boring.

Neuroscientists estimate humans spend more than 30% of their time daydreaming. Think about the last time you watched a great movie with a great story – were you daydreaming? We can use story to help our customers see how we can solve their problem and what their life will look like after they buy our product or service.

A list of features or benefits by themselves will not sell your services. Use a story of a customer’s journey from frustration and challenge to success with your solution and services. Every person intuitively understands a good story and is working at living her own story. If your business could understand the story your customers are living in relationship to your brand, you can stop selling products and services and instead invite customers into a story. Their Story. By positioning your company as the guide in your customer’s story, you can more easily speak to your customer’s needs.

One of the best ways to create your customer’s story is to use the StoryBrand methodology as described in Donald Miller’s book “Building a StoryBrand: Clarify Your Message So Customers Will Listen”. As a StoryBrand Guide I help MSPs implement the StoryBrand methodology to attract their ideal clients, get more meetings, and grow their business.

Make Your MSP Blog a IT Sales Tool

Okay, you just exchanged business cards with the owner of an accounting firm during a chamber event. 

He said, “Sure, let’s plan on meeting some time over the next 2 weeks.”

Awesome! You left the event with a qualified lead! Plus, he agreed to meet and he already shook your hand. 

The problem, because we all know it’s never that easy, is that there’s a delay. You couldn’t ask him much of anything, and nevermind describing what makes your MSP unique.

There’s no set date for the appointment, and who knows, he may bump into a competitor or research online in the next 10 days!

So, what do we do now?

You need to activate the EPSA campaign

EPSA is an acronym for education, professionalism, story-telling and authenticity, and together, these are the qualities you want your prospect to understand, because if they grasp what makes you and your company unique, your chances of winning will go up.

The full implementation of EPSA is what I’ll cover in the seminar, but for this blog, I’ll share just two examples of how MSPs are doing the “E for education” part of the EPSA methodology.

E is for Education

Let’s get back to the story above.

The CEO of that accounting firm may have asked you a question about security, or maybe they told you they were using O365 but not getting much out of it, or perhaps he didn’t say a thing aside from “we need help with IT.”

The goal with the E part, or “education,” is to teach your qualified opportunity two things. First, to teach him something he didn’t know, and second, to show him that your company is a thought-leader.

Example by NSI

NSI is an MSP in Naugatuck, CT, that my agency helps with sales and marketing. A blog called, “In the Trenches of a Real Breach” is an audio interview we did with Tom McDonald, the CEO, about some ransomware attacks. It goes into what a SOC is and the importance of having an incident response plan. By having Tom’s voice and real story, we are showing his unique expertise.

Example by Casserly Consulting

Casserly Consulting is an MSP in Boston. A blog called, “The State of Cyber Security in the Commonwealth” we took the publicly available breach data from Mass.gov and we analyzed it. By doing a deep dive into the nature of breaches in Massachusetts, we’re making Peter’s MSP a thought-leader.

Break Your IT Sales Barriers with Ian Altman

We are starting our "MSP 2.0 bestseller" monthly book review. We want to start strong, so the first book of this series is the new consultative selling holy bible, Same Side Selling. The co-author, Ian Altman, CEO of Grow My Revenue, is a sales visionary, bestselling author, Forbes contributor and keynote speaker.

While speaking with Ian it became clear he knows how to win the hardest battle IT managed services providers have ever faced: commoditization of the IT infrastructure services and the resulting price pressure, shrinking margins, and the lack of differentiation from competition.
One of our MSP 2.0 movement members suggested I read the book: Same Side Selling - A Radical Approach to Break Through Sales Barriers. He had told me that this is 100% aligned what we do in the Managed Services Platform IT Consultative Sales program. I read it and I was flattered. Most of what I’ve read on the subject involves large complex concepts, but this book was very simple, very practical and quite an eye opener. I think everybody who’s a little serious about MSP 2.0 should read his book.

You can read his articles each week on Forbes.com. If you do a search in business trends, he comes up #1. Business luminary Seth Godin recommends Ian’s latest bestselling book, Same Side Selling, as one of two must-read books on consultative sales. Ian is host of the Grow My Revenue Business Cast. He started, sold, and grew his companies worldwide to values of more than one billion dollars. 

I had a chance to chat with Ian last week and he was able to carve out time with us for a quick interview. The fun part is that he knows the industry well, so we had a great chat. I am not going to try summarizing the interview, as I think it’s better to just hear him for yourself.

Thanks again to Ian. Check out his webcasts at his website: http://www.growmyrevenue.com

How to turn an unknown visitor into a lead easier than you thought

We’ve been talking about the 4+1 Website Sins Preventing MSPs from getting more MSP leads. Many of you are asking, "Okay. I know our MSP website doesn’t generate leads like we wish it did, but we don’t have the money and time to re-work it, so what do you suggest?" 

Here we describe a process to add elements to your current MSP website in under 60 minutes and generate leads.

Before we start let's get perspective on the situation. If your current website does not have enough visitors, it’s hard to make any magic happen. If your current website attracts visitors, but they’re not qualified, then you’re still not generating the leads you need.

If you aren’t sure send me an email with your website URL. We’ll run an analysis on your website, and report how many leads you can expect by implementing this process.

The idea here is to create a lead-generation process that attracts the right visitors through social media, organic searches, and so on.

We are going to use our platform to demonstrate this method in practice. The process is general - you can use any marketing software to implement it. The difference among them will be the time, difficulty of implementation and the creation of the content.

Win new clients with it sales software

Step 1: Pick two Graders from the MSP marketing library

First, we need something interesting and relevant to the visitor so they can get engaged. We should use something on the main page or a landing page where they can do something interactively.

Graders are mini-surveys which can be implemented on any website. The visitor clicks on the Call to Action button and a javascript pop-up window appears. Here the visitor gets yes-or-no type questions on a particular topic. Based on their answers, it sends back a Grade - a score for the visitor (whoops...it's now a lead.) in a nicely packaged ebook format. It comprises their score, some suggestions, advice, next steps, and more information.

Although Graders can be modified and created from scratch, we have a bunch of them that can be implemented quickly. A Productivity Grader for example asks 7-8 questions about how a visitor leverages technology to become more productive - about emailing habits, meeting organization, personal task management, team project management and so on. At the end they get back a Productivity score. You as an IT managed services provider can influence their productivity, so you need to engage them in conversation about the value and benefit of your services. That's what we call "business communication."

These little Graders are great in social media as they spread quickly and also help us to qualify our leads. There are popular Graders such as measuring your current service provider. Whoever is evaluating the current or future provider will be highly likely to fill out our Grader, because they are already looking for the answers in the results.

The MSP 2.0 Marketing platform gives you quite a bit of flexibility on the content and function of Graders. It sends a white label pdf with your logo from your email, and also an email sequence to follow the lead after sign up.

We have not seen any other complete software for these things. Surely Wufoo, Surveymonkey or Google forms can get the answers, but would require a lot of manual processing to create the report, and won’t have the content and design.

Step 2. Pick Two MSP eBooks from the library

There are of course people who do not want to play with the tools, but do like to download valuable content. Based on our research, if content is business rather than IT oriented, the conversion rate from visitor to lead is higher. For example, if we write an MSP eBook entitled: "How smart executives boost their top line with sales intelligence," rather than: "Should you Implement Windows 10?", we get much better lead generation.

The eBook will highlight the benefits of applications and technology solutions that smart executives use and the visitor doesn’t yet. Since the eBook is written for executives, executives will and office managers will not download them. That helps you qualify the leads.

Our MSP marketing library has plenty of different eBooks you can implement quickly. The docx format is easily customizable with your logo and your name, and then ready to go.

A good eBook increases the conversion, but a great eBook increases visitors as well. Social media is ideal to promote such content.

Then again you may want to create your own content, which is great. As we see it, to create an eBook or Grader takes at least 1-2 months for a busy managed services provider. We usually suggest choosing generic eBooks and Graders first from the library. After swapping out the titles every one or two weeks and checking the statistics to see which works better, then you can add your content, but without losing the 1-2 months of lead generation opportunity.

Step 3. Implement Calls to Action

Now that we have some content to offer we should help the visitors to take action.

We use four types of call to actions (we call them Lead Magnets).

• Button - to place inside our current text with a javascript code
• Pop Over - to create more attention
• Scroll Box - to offer our material when they scroll down our page
• Smart Bar - to make a short offering on the top of the page
  
  

We then need to configure these Lead Magnets accordingly. We can modify the page they appear on, the type, whether it shows every visit or day or week, etc. Nobody can accurately predict what works best for everybody, so just set it up and tweak it based on the feedback reports.

These reports show you how many times the Lead Magnet appeared, on which pages, what the visitor did, etc. so you can best tweak the size, color and message on the magnets.

Most marketing software has some solution for the Calls to Action, but not the reports, statistics and easy implementation and adjustment.

Conclusion:

We do not need a IT marketing assistant, marketing team, or an outsourced marketing provider to get results. This is not a comprehensive marketing system, just a reliable system to turn people into leads likely interested in our products and services, and a real chance for them to engage comfortably.  Let's get busy and make business happen.

MSP Game Changer IT Sales Ideas From The Book - The Challenger Sale

The MSP Stories that lead Managed Services Platform projects

Some of you have been asking us about our background, who we are, and why we’re doing Managed Services Platform. 

Our Challenge

One of our companies at first was an IT managed services provider. We’ve since reintegrated it into our holding company, but think telling its history will be illuminating...

We discovered that while our clients always needed consultancy on IT in general, we lacked a viable model to do it both properly and profitably. We’ve tried to incorporate the consultancy into the MSP high-end package, and tried to do T&M. Neither approach was satisfactory.

But the pressure just gets heavier as we’ve been witnessing the evaporating services on our MSP practice, accompanied by ever increasing needs of the clients for IT management, vCIO, and 3rd-party-project management, all while IT gets more complex in terms of organization management.

7C IT Management Framework

We’ve created a checklist questionnaire, the aim of which was to improves sales of our services while setting the stage for prospects. We tried to ask the questions we knew they were trying to formulate to express their needs.

We gave this questionnaire an easy to follow structure and designed it to produce a score for each taker. We’ve identified seven critical aspects of IT competitiveness today, and because we were able to pick seven words starting with the letter “C”, we called it "7C.

Once we started to send this out to prospects and clients it became a dynamic tool. The software behind the analytics that produced the score and report was popular too. Also, because it was about business terms, it helped somewhat demystify IT. It covers all the aspects of the activity of IT management that 40-200 seats company need to know about.

Reframing Your Clients

One of our ventures at this time was with our other company - where we became a Country Developer for a General Management Consultancy methodology. This was a general company development framework with strategy building, organization, execution, and alignment. Uncommonly at the time was that it was a true 100% consultancy business, though it had a monthly recurring service model, a project for implementing the framework, and recurring service revenue to maintain it.

We got curious; if general consultancy was able to work out with a recurring service model, it must work with IT management, as well.

We then started to implement the principles of the general management methodology to IT. We listed all the duties of a vCIO, from client discovery to strategy creation, quarterly planning, documentation, audits, vendor management, execution, communication, leading the internal users, IT admins, and so on.

We end up with a framework like ITIL for small clients, with implementation, project-oriented and ongoing activities. We put all this into various packages and started to offer it SEPARATELY from our MSP contract.

The kicker was that we had charged a lot for the implementation of the IT management framework.

Our value proposition was that we were able to get you from 28 to 75 in 6 months with the implementation of the framework. CEOs were able to grasp this measurement thing quite adeptly.

That was the tipping point. We have more than doubled our size in nine months. We’ve added several new clients, and several new doors are opened with the productized SEPARATED vCIO roles.

We even acquired a client who had MSP but with weak vCIO role, and have done more than a dozen “implementations." The sale itself, not to brag, went rather easily, because the result was very tangible to the clients. Everything from strategy to roles, activities and documentation, etc. is dealt with by the software. When they saw the vision and the results, they ordered the project. Then to maintain every part of their IT ecosystem they ordered the Virtual CIO services.

Everything about us follows from this story. We wanted to share our questionnaire, the scoring, the model, the pricing, and the packaging to the MSP community. Because we are running so many things at once (we are starting a pure MSP 2.0 company in Canada with no MSP resources), this venture has long held a status of our pet project.

Along the way Autotask and GFI saw an opportunity in what we’re trying to do. Both of them supported us in a big way to be able to move forward. Those guys are just awesome!!!

We’ve now pulled off a website and have a handful of companies using our beta, but are still fine-tuning the package to be able to help other IT companies the best we can

MSP 1.0 vs. MSP 2.0 [video]

MSP 1.0 is not widespread yet as a business model, and there is already the new 2.0 model.

What are the key differentiators between the two models? The following will refer to an average MSP 1.0 and MSP 2.0 practice.

We are assuming that the MSP 2.0 model is heavily supported by an MSP 2.0 framework, which is crucial. The differentiations may seem simplistic, but our aim is to show the possible limitations and challenges of the MSP 1.0 model, and the opportunities of the MSP 2.0.

Keep in mind that MSP 2.0 is not a substitution of the MSP 1.0 model. It is an expansion. You can move your existing 1.0 services forward, but with 2.0 as a companion the new options are going to be very promising.

Tech Value vs. Business Value

Giving someone a technology solution is not necessarily giving business value. The technology solution is only a part of the complete solution. If it is an ERP, the software is just part of the internal processes, interactions etc. If it is an email system, it’s also integral to the entirety of company communications.

The business value of an ERP project to is to enhance the efficiency of their processes, through automation and streamlining. The business value of the email system is an effective, well-processed, internal and outside communication system with secure limited access.

The technology is 30%; the rest is HR, management, controlling, etc. With MSP 1.0 usually the MSP does only the technology part of the project. In MSP 2.0, they become the leader of these projects; evaluating vendors, conducting the project management and quality control, as well as implementing the technology. This is a very visible difference in value to the customer.

Techy Slot vs. Trusted Advisor

The general limitation of the MSP 1.0 is that you are a technology service provider, and you provide value by providing technology. Yes, we know, this includes you providing business sense for the different solutions, but you don’t usually receive the following call: "Hi, we need to expand our operation abroad, and we need your expertise." or "We want to penetrate the new market segment and establish a sales representative system. Let’s figure it out together."

More likely it’s in the form of “‘You guys know any accounting packages which can handle foreign currencies?', or "Can you guys deploy a server for MS Dynamics CRM to us?" You’re pegged into the "Techy slot."

That’s a noble role to fill if you want it, but you will find yourself waiting for them to realize they need something concerning technology - it limits your opportunities tremendously.

Instead with MSP 2.0 you give them business value, which means you are there if they have a major challenge, development, or other change in their business. You stay current with their vision and direction so you are able to become a Trusted Advisor, or virtual Chief Information Officer (a vCIO). You’re already there well before the issue with technology arises, and you’re able to alert them to an IT challenge and background support for their decisions. This vastly expands your billable opportunities.

Thin Focus vs. Broad Focus

In MSP 1.0 you focus on technology, and your part of the client side. Maybe you give them quarterly planning sessions, even some kind of strategy, but the scope of these projects is limited to your service scope. In MSP 2.0 you think of the entire operation holistically from the client's perspective.

You re-think your MSP 1.0 service as one piece of the pie, and now manage all the vendors, third parties, and even the internal IT team to some extent. You negotiate the support contract for the ERP vendor, sign the bill of the telco company and so on. Your focus is on the global value creation of the IT, not just the MSP 1.0 scope.

Low Level vs. High Level

Alistair Forbes, General Manager of GFIMAX is presenting the Concept publicly first

With this in mind you can see that the MSP 1.0 focuses on technology and low level execution. MSP 2.0 focuses more on high level management. Don’t think of one as better than the other, but rather as models with different scope and approach.

Most of the time, the low level ground work isn’t visible to the C level executives. They are not able to measure and evaluate costs. In high level work, you are dealing with them personally and you help them with their problems. Your visibility is entirely more significant.

High vs. Low Acquisition Cost

With MSP 1.0 you’re often being summoned by a client with some painful problem. If they do not have IT related issues, it can be difficult to convince them to move forward. Also since other problems will keep arising at unpredictable and distinct times, you can’t stay connected with the prospect and ready when they have the next painful issue. It’s necessary to keep the relationship going for a long time in order to be visible and trusted to let them know of impending problems to which you have solutions.

The process of starting a business can be quite slow and unpredictable. On the other hand, MSP 2.0 gives a solution to a general problem, and is not dependant on big problems and imminent pains. You are able to start the conversation any time. Reframing this approach will lead to closing more deals. MSP 2.0 means you can start a basic service and as problems and opportunities arise you can upsell your higher value MSP 2.0 services.

Hard to Acquire vs. Unique Value Proposition

The other sales-related problem in MSP 1.0 is not just the closure ratio and the long cycle, but the effort needed. Usually the entry barrier is very high. If there is another MSP vendor, even a poor performer, you have to be able to prove your service is better at the same price, and usually you have to bear some part of the switchover costs. This means a fight over minimal margins.

In MSP 2.0 your service is of a higher level with a very Unique Value Proposition. It does not really matter what the existing situation is on the low level. You can offer your services in a white space, without internal competition. This makes the process easier, without sacrificing the profits, and without high switching costs. Of course still if you are competing with any MSP they will be seen as redundant quickly.

Pushy Sales vs. Consultative Sales

MSP 1.0 is a quite competitive place to be, so sales tactics can be pushy with practiced sales techniques, closing strategies, and unnatural communication. It reduces the comfort of the prospect and erodes trust, because you need to talk them into something.
Immediate solutions to real problems are still in play, but this occurs less and less as the market saturates.

In MSP 2.0 with 7C, the sales technique is different: a consultative sales approach. You get to know them in a business and IT perspective, in casual meetings with questions, helping you and them both understand their situation with a questionnaire-based benchmark and report, conduct a workshop, and create an action plan.

The more consultative experience shows your value from the get-go. It’s also more natural, as you can demonstrate your valuable expertise in a formatted way and garner trust during the sales process.

No MSP Sales Process vs. Predictable MSP Sales Funnel

Usually smaller IT managed services providers don’t have any sales oriented people, so the sales process is absent and the acquisition and the upsell unpredictable. Even more mature mid-size IT companies lack a streamlined, well-controlled, transparent sales funnel with all the metrics and motivation for the salesforce.

MSP 2.0 with 7C IT management framework is both the sales funnel and the consultative sales process. If you have a clear message for the audience, the inbound marketing is easier. You have an inbound marketing tool, a discovery tool, questionnaire, analysis, report, workshop, action plan builder and first quarterly plan.

This sales process will identify the necessary relationships, rationally spread the responsibility and clarify accountability. Also, because the process is well-defined, you are able to easily educate the client for more predictable results.

You can quickly implement the funnel as an inbound marketing campaign, and expect new clients in 4-6 weeks. Even an inside salesperson can acquire good quality, targeted prospects in 2-3 reframing workshops, which, with a 50% closure ratio is 4-6 new clients every month.

Low CEO Awareness vs. High CEO Awareness

As we have seen before, general awareness of the MSP 1.0 services is quite low. Usually during the reframing workshop with existing clients, it turns out that they don’t know what you do on a weekly or monthly basis with their back-ups, policies, and so on.

You may have discussed it with them and they may have nodded to do it, but these don’t stay front of mind, especially if you are working so well that you avoid outages or firefights, and completely disappear. In MSP 2.0 with 7C, you are working with the CEO directly.

You solve their business-related problems, gather information for them to help guide their decisions, lead their virtual IT department with all the vendors and internal IT staff, and report to the CEO directly. This greatly enhances your visibility and awareness of the CEO as to what it is you do and how much value you actually deliver. It’s a different relationship, trust, and respect level.

Slow Progress vs. Immediate Results

Although managed services providers usually have a wide portfolio of services, the client often signs up for a limited part of it, and it’s a very slow process to upsell all the great new services. Why? MSPs are not really proactive, and the whole portfolio is rarely known as part of the client’s business lexicon.

The client sees separate services instead of the big picture you can bring. With the 7C MSP 2.0 this is different. It’s much easier for the client to draw a development roadmap for 1-2 years, and execute the development plan with the MSP, because you put your and other IT services into their business context.

You are able to gradually raise the maturity of the client in a measurable, accountable journey. This gives you a faster, more aligned process to grow on the client side. Everything starts with a very solid 1st quarterly plan. Executing it flawlessly will open the door to further development projects.

Commodity vs. Margin

Alistair Forbes, General Manager of GFIMAX is presenting the Concept publicly

Because the MSP 1.0 market is now so saturated, the competition is tight, vendors deal directly with clients, and services are in very tough markets. This is called a communization, where, at the end, services are differentiated only by price.

To avoid the communization and avoid lower margins and price reductions, you have to change or extend your model. MSP 2.0 with 7C provides the client unique benefit and business context, and a very powerful weapon against their competition, leaving you in a very unique position.

This way, you are able to sell your existing offers at a higher price, while also more streamlined, and very profitable. Also, because the MSP 2.0 model is very new and rare, it’s seen as a high value service worth a higher price.

Avarage Brand vs. Remarkable Brand

As a local technology company, it can be very hard to be seen as a remarkable brand. With all the communication, service delivery, and collaterals, 100% alignment is needed to give a consistent brand feeling. You have to have a very unique value proposition where everybody knows what’s behind it. Volvo is a safe car, Starbucks is a great place to relax, Apple is a great user experience.

MSP 1.0, doesn’t include these engaging messages. MSP 2.0 with 7C, it’s different. You can show a very stable user experience during the sales process, your messages, the service delivery, and communications. It is fundamentally more professionalism and inclusive while maintaining a friendly, down-to-earth feeling. Your brand will emerge and become remarkable locally with high referral rates and powerful communication.

Cloud risk vs. Could proof 

The Cloud is disrupting the MSP 1.0’s main business and revenue stream, its infrastructure projects and support. All related services are changing, as well as the consumption rates. This is hurting MSPs. In MSP 2.0 with 7C, the cloud model is actually favourable. You can use the growing complexity and business impact of the several different cloud-based applications and services to sell to the management layer on the client side.

Mixing Cloud applications with on-site integrations and reliability concerns means security is a big issue. You can control the whole ecosystem and build a solid service, managing IT at a high level and ensure departments, technologies, approaches, and models of delivering IT are completely in harmony regardless of the client’s particular business model.

3 ways to segment the market for MSP 2.0 services for maximum effect

Many MSPs are not able to well define their target segments. The result can be a huge sales effort with disappointing sales closes. There are three main differentiating factors we could use to fine tune service directed toward the different segments:

• Industry, verticality
• Seats
• Complexity

IT managed services providers could divide their market among three segments described below to benefit from more focused communication and delivery strategies.

The 3 minute video discusses the segmentation based on seats and complexity.

So you are convinced that the MSP 2.0 model with the 7C is a good companion for you. Maybe you are just interested in who can benefit from such services; who are the target markets? So here’s a nice chart again. We are going to see how we can divide the market into meaningful segments to be able to communicate better and give the needed service.

In this chart the horizontal axis shows the business model complexity, with respect to the operation and the business processes of the client. You know clients whose processes are fairly straightforward and easy to maintain, but you also know clients who are developing the internal operation building systems all the time. So we measure these activities on the scale of the horizontal axis.

On the vertical axis there is basically the size of the company with relation the IT ecosystem. So if there is a manufacturing plant with 40 office workers and 150 floor workers, we count them as 40. If there is a service company with 20 employees with individual subcontractors of 20, all of them connected in any way, we count it as 40 as well. We want to see the people involved in the IT ecosystem.

Let's divide this chart into 3 segments.

The first segment is the MSP 2.0 light segment

Here we have the companies with fairly low need for IT management and MSP 2.0 services.

Either they have 30-40 people, but very limited complexity, or very few people with a complex operation, but they can handle it mostly themselves.

We can offer them an MSP 2.0 light version, which includes only the yearly cycles with IT strategy facilitation, budget settings, alignment, and the quarterly sessions with action plans etc.

We are just trusted advisors here, giving them the structure, and the facilitation. The rest they can do, of course with our management support from the background.

The second segment contains the companies with more people and more complexity

The upper limit is where they have to have an internal CIO full time with an internal IT team. This is flexible depending on the industry and the management style.

So in this middle segment, we can run our weekly and monthly IT management rhythms. In this section we are involved more in the execution part of the operation and are leading the departments and so on.

This is the ideal way to deliver the MSP 2.0 as we have full control and we can give the best value per dollar.

In the third segment are the companies with internal CIO, part time CIO, and internal IT

Here our value is in providing the necessary framework for them for an efficient operation. Basically we can onboard them to the MSP 2.0 activities, coach, support them and give additional management capacity, outside control and advice.

This is a very fruitful segment, because we are able to get a very limited accountability in general, but we can get a project to manage or execute completely. So this is a good way to have a strong link with a company who usually runs several high value projects all the time.

So the lines are not strict but more like guidelines. You have to put your clients in one of these slots, and try to establish the model as best suits their needs. In the first segment you have limited resources but high profitability, in the second the monthly recurring is highest and you can get decent project work and additional management work as well. In the third you are the trusted advisor and help them establish their efficient IT operation, and you can get the juicy projects to manage or execute. 

How to decide whom to transfer from Time and Material to MSP contract?

I. Identify the segments we want to exclude

Identify which company size, culture, and verticals we have to exclude from communicating the values of MSP, freeing up our sales and marketing resources.

Size:
Usually under 15 users, the problems are not that visible, and the price is quite high to be able to sell the managed services. Try to sell cloud-based solutions to them and manage those like Office 365.

Culture:
If the company’s or the CEO's culture is to invent everything inside, they’ll want to do most of the jobs and minimize paying for extra skills. The T&M is ideal for them. You have to keep in mind that you are always educating your clients on definitions you want to sell MSP. For example, you may tell them good things about RMM and ProActive, then when they sign up for LogMeIn and think they are going to have the ProActive stuff.

Also, keep in mind that CEOs are often unable to take the long view about the value of the MSP. The problem here is that they are not going to understand the boundaries of your services. Therefore, they will think everything is included (which is not the case), so it’s a struggle to bill for the projects and additional services they are consuming. It will hurt your profitability because either you are working for free or you and your account managers are regularly dealing with misalignments and speed-bumps.

Verticals:
Very old-school types of verticals do not really go for MSP. They do not think of IT at all, and this is a cost for them. They do not even rely on IT - If it fails, it fails, who cares. So for them, the value is very limited.
Do not try to upgrade them. Either keep them and allocate lower-level people there and do not focus resources, or terminate some of the contracts and pass them to your competitor for a referral fee. Cleaning your portfolio can be very helpful, and most of these clients are going to change dramatically.

II. Identify the Time and Material contract that has potential and sell it

Identify the segment of the T&M contracts that have the potential, size, and culture but do not yet buy those services.
The main point to get across is that they could implement the MSP services into their business benefits. Usually we speak in “educated guesses” about these benefits. Proactive maintenance means more uptime; servers are always updated and secure. Our guess is that the terms "uptime," "update," and "secure" have specific business value to them, so they will see the overall benefit. In case they do, they already have an MSP service contract.

There are some who won’t see it. IT has nothing to do with their bailiwick. They’ve been successful without it so far and do not understand the connection between their benefits and your services. The connection so far is likely vague (general), theoretical (not practical), event-based (ex. disaster), and artificial (not real); so they do not buy.

Discovering the specifics these businesses care about and connecting them to a solution is a very difficult and time-consuming process. They may not participate in a first meeting if they don’t believe they have a problem you can solve. Therefore, you do not have even a chance to make it happen.

How we should hack the system?

1. Platform:

You must find a common ground or a common platform, and then you will be able to talk about the problem. The platform should be independent, business oriented, fast, reliable, and proven.

That means the common ground (as a IT benchmark, score, and measurement) is going to be this topic of discussion rather than your services.  

2. Performance Measurement:

You have to face them with the truth in a measurable way...give them back a score and show them how much more competitive they are with IT, or show them the competitive disadvantage they now have.

This measurement process must be easy and fast. As a result, they are going to receive a score that represents their performance. Because they are currently in the Time and Material group they will score low. This means you can compare this with the standard for performance you set together, and then they will see the opportunity to improve their performance.

3. Social Proof of the Norm:

You must have social proof that the average companies are doing better on that scale. Consequently, you have to define a standard and set the standard as an official, independent norm. You have to show them benchmarks in their industry as well. Show where they are lagging against their competition overall. The norm is defined by the platform, the common ground.

4. Show the score of the MSP services:

They will see that there is a measurement and that their score is low. The small details are less important - the overall picture is low. You can then present the MSP contract, which will present a notably higher score.  In ITCq, you can set your service offerings to the scores, so based on your service offering, a target score will come up, showing the exact score they could have using the different types of your services. They’ll see how they can outperform the others, and you can highlight how much and why.

5. Show them the financial benefits.

Now that the understanding of the value is there, you only still have to present the price, which should be high, but in comparison to the value, a good investment. You could set targets for 90 days and for a year, which you can guarantee. If the scores do not exceed those, you give their money back. Because everything is in your control, the scores depend on what you are doing; it is not at all a risk. 

Conclusion

The way to switch to the MSP 2.0 contract faster is to divide the segments of the potential buyers and non-buyers and then use a measurable platform to create the sales for the clients who have potential.