Introduction
A high performing sales function is pivotal to sustained growth and profitability for all MSPs. This blog explores an innovative approach to structuring an effective sales framework for your business – one that is Return On Investment (ROI) focused.
Leveraging Specialised Teams
1. Implementing a Tender Team
- Strategic Focus: Allocate resources to a dedicated tender team responsible for identifying and bidding on public and private tenders. This specialized approach ensures targeted efforts and increases the likelihood of securing lucrative contracts without overextending your sales budget.
- Expertise and Compliance: Equip your tender team with comprehensive knowledge of compliance requirements, industry standards, and client expectations to deliver competitive bids that stand out in the market.
- Expected Results: The success ratio of this team will very much depend on the capability of your MSP, its ability to differentiate and the skill of the tender team. A conversion target of 10% – 20% is a reasonable goal to set, increasing to 15% to 30% when combined with an effective nurture strategy.
2. Establishing a Nurture Team
- Prospect Engagement: Develop a nurture function focused on cultivating relationships with prospects who are not yet ready for immediate engagement with sales or the tender team. By delivering valuable content, personalised communication, and consistent follow-ups, the nurture team enhances brand visibility and keeps your MSP top-of-mind until prospects are prepared to enter into a procurement cycle (your sales cycle).
- Long-term Relationship Building: Emphasise the importance of building trust and rapport through ongoing engagement, positioning your MSP as a trusted advisor capable of meeting future client needs effectively.
- Expected Results: The success ratio of this team will very much depend on the quantity of input from prospecting activities. A successful nurture campaign should not be measured in clicks, views or opens – you will know when it works because your conversion rates will significantly increase (a 20% sales conversion rate as a result of nurture is a solid goal to set).
3. New Business Sales Team
- Strategic Acquisition: Allocate resources to a dedicated new business sales team responsible for identifying and pursuing opportunities with prospective clients. Be strategic, your high cost sales resources should be effectively utilised on tasks that requires their skillset and expertise.
- Expected Results: By having fewer sales people and being more effective in their utilisation, you will create longetivity in your new business development roles. You will attract aligned candidates and retain them through shared success. With this approach, it is not unreasonable to have a new business team that consistently exceeds targets.
4. Account Management Team
- Feedback and Improvement: Implement feedback mechanisms to gather insights from clients, understand their evolving needs, and continuously improve service delivery. By demonstrating a commitment to client success, MSPs can differentiate themselves in a competitive market and reduce churn rates effectively.
- Hire Account Managers: Even though we often measure Account Management teams in terms of financial results, this is a very different skillset to New Business Sales. Be strategic in your hiring and focus on attracting great Account Managers.
- Expected Results: The success ratio of this team will very much depend on the capability of your MSP and its service quality. The team should be measured on retention metrics (depending on how your MSP measures this) and revenue metrics.
Maximizing ROI and Sustainability
1. Resource Optimization
- Cost-effective Solutions: Optimise sales resources by focusing on specialised teams tailored to specific stages of the sales cycle. This approach minimises overhead costs associated with traditional direct sales models while maximising efficiency and productivity.
- Performance Metrics: Implement robust performance metrics and KPIs to measure the effectiveness of each sales team, identify areas for improvement, and align strategies with overarching business goals.
2. Building a Sales Culture
- Collaborative Environment: Foster a collaborative sales culture where teams work synergistically towards common objectives. Encourage knowledge sharing, skill development, and continuous learning to empower sales professionals and drive collective success.
- Recognition and Reward: Recognise achievements and contributions from all sales teams, including tender and nurture teams, to foster motivation, boost morale, and reinforce a culture of excellence and innovation.
Conclusion
In conclusion, MSPs can achieve sustainable growth and competitive advantage by adopting a strategic sales approach that prioritises efficiency, specialisation, and client-centricity. By leveraging specialised tender and nurture teams, investing in client retention strategies, and optimising resources effectively, MSPs can navigate budgetary constraints while driving significant ROI and fostering long-term business success.
