How to increase monthly recurring revenue (MRR)
Monthly recurring revenue is a big, big benefit of a managed services model. When you think of Netflix, NOW TV, Spotify and Amazon Prime with their subscription-based models, it’s clear to see that this positively meets the demands of today’s consumer, and with this comes predictable recurring revenues. Businesses are willing to pay a fixed monthly rate for the services they want and need, and they’ll do it month after month, year after year…
Adopting an MRR model can deliver long term profitability, increased customer stickiness and greater customer value. Subscription based services and revenue streams are not new – mobile phone companies have been doing it for years. But as technology becomes increasingly pervasive and consumers demand choice and high availability, there is huge demand for true pay-as-you-go payment models, within business as well as for consumers.
A major challenge any business has in adopting a monthly recurring revenue model is being able to adjust its business model from traditional capital expenditure (CAPEX) to operational (OPEX). Cash flow, customer acquisition cost and customer lifetime value are all key metrics in assessing the health of any recurring revenue business model – all of which present relative difficulties in infancy of any transition.
Add value beyond sales & support
With this longer-term commitment, you must ensure you’re adding value far beyond sales and support. You need to make sure you’re adding value and becoming their trusted IT expert. As an MSP, you can set up a robust business model that means your customers see you as part of their existing and growing revenue streams. If they consider you as part of theirs, you’re adding more to yours, and there we have it – predictable, recurring revenue!
Value, value, value!
We’re moving away from transactional business and in order to compete in an industry where other MSPs are looking to find that differentiator, providing outstanding and long-lasting value to your customers – outside of price – is an absolute necessity for any business aiming for long term success.
Play to your strengths…
No business can do it all – we have to play to our strengths to give our customers the means to succeed. Many MSPs do however hit the wall at some stage: how do you manage your customers’ infrastructure and services with super tech support and continuous monitoring?
Yes – there’s a lot to get over here…
Other than investing in highly skilled technicians to take care of support, which is a huge HR cost to your business, you can take advantage of a partner programme with an experienced cloud distributor.
What you’ll need to look at first is how you see the role you play in your customers’ IT strategy. Our partner programmes are designed to enhance your MSP business, whichever option you choose.
Programme one: Trusted Advisor
Our Trusted Advisor model is designed to help you where you are strongest… Finding customers and selling cloud services. intY manages the technical support and the customer billing, freeing up your time so can focus on what you do best.
Programme two: Expert Partner
If you are the type of MSP, VAR or Solution Provider that demands total control, then we have the platform for you. Offer your customers the world’s leading cloud services while managing their licenses, billing and support. Maximise your revenue instantly, anytime and anywhere. Maximise it with intY.
Realise your value proposition
There are many MSPs out there selling the same solution stacks: security, backup, productivity suites and so on. What makes you different? Why should businesses choose you? You should be focusing on the added value you bring to your customers and shout it loud and clear.
You can begin with your website
Summarise your business and your core values in one compelling sentence on your home page and engage your visitors from the first touchpoint. Make your website stand out from the crowd, and remember you’re selling the value you bring with the services you deliver.
Social media
Another important step to getting your message heard loud and clear is using social media. Social media is one of the most cost-effective marketing tools out there. Think about it… You have millions of users to engage here, and you don’t have to spend to engage them. When they do begin to engage, your messages are spread organically giving you much more visibility in the online world.
Be a voice of relevance. Be a thought leader.
Gain social validation and bring in more customers using social media to drive traffic to your website where your compelling messages do the work.
Work smarter and increase MRR with data
Microsoft’s Power BI is a business suite of in-depth analytics tools to analyse data and share insights. With Power BI, you can collect important existing customer data and identify even more opportunities to up-sell and cross-sell, further increasing MRR.
Trade events
By attending trade events, you’re gaining visibility from ‘hot’ leads already looking for the right MSP. Carry your core and compelling messages through to the stand and sell your value proposition face to face.
At intY, every year we hold our annual CloudFest conference where we connect our partners to the vendors directly. Here you can gain invaluable insights and stay ahead of the curve adding to your value proposition.
Are you on track for ultimate success?
Choose the right provider. It’s as simple as that. At intY, we’re all about the value we can deliver to our partners to ensure complete success. intY is the only cloud distributor that can offer you a dedicated account manager to make sure you get the most out of us and the most out of the vendors.
Now that’s true value add.
intY is the original cloud marketplace and we consult with thousands of global partners; from vendors and distributors to MSPs and end-users – we’ve operated a subscription-based business for over 20 years, long before it was ‘cool’ and long before any other UK-based IT distributor can lay claim to. intY has proven success with this model and is widely regarded by the channel as being the leading cloud subscription business.