The managed services industry is booming. The global MSP market is expected to reach $393 billion by 20281, fueled by small and mid-sized businesses increasingly turning to MSPs for their IT needs.
However, with growth comes challenges. MSPs worldwide face obstacles like acquiring customers, hiring staff, and keeping pace with new technologies2. To stay competitive and scale sustainably, MSPs must adopt best practices that set them up for long-term success.
Here are 15 top tips for MSPs to enable sustainable growth in 2023:
1. See Customers‘ Challenges as Growth Opportunities
Many customer pain points present an opportunity for MSPs. According to Kaseya’s research, the top areas SMBs need support with include3:
- Cloud computing
- Business analytics
- Network monitoring and management
- Business continuity
Cater service offerings to address these needs. While providing core services like antivirus and network monitoring, also offer more advanced security, cloud migration, and backup services to fill gaps.
2. Leverage Strategic Partnerships to Expand Offerings
Partner with leading technology vendors to access innovative solutions and resources. Resell or utilize technologies like RPA internally to streamline operations. This allows MSPs to provide greater value to customers.
3. Develop Scalable Systems and Processes
Documented processes and tools like RMM enable MSPs to efficiently serve more customers. 54% of MSPs reported lacking enough time as a top challenge, indicating a need for scalable systems4.
4. Attend MSP Industry Events and Conferences
Networking and lead generation opportunities make events like IT Nation and ASCII Success Summits worthwhile. MSPs gain insights into trends and build relationships.
5. Focus on Customer Success and Retention
Exceptional service and aligning offerings to needs (like security and cloud) boost retention. Listen to customers and proactively provide support to earn trust and loyalty.
6. Prioritize Security and Compliance
Robust security strategies are a must, as cyber threats proliferate. Stay updated on compliance standards too, to keep customer data protected.
7. Invest in Employee Training and Certification
Skill gaps impact over 75% of IT leaders5. Certification programs and training help teams master new tech and deliver cutting-edge managed services.
8. Guide Clients on Digital Transformation
Educate clients on technologies like AI and RPA. Position your MSP as a trusted advisor in selecting and implementing emerging tech.
9. Optimize Pricing and Packaging of Services
Regularly review pricing models and service bundles to ensure they offer value. Tiered pricing and flexible payment options also appeal to different customer budgets.
10. Market Your Managed Services Effectively
An omnichannel strategy spanning content, email, social media, SEO, and ads helps MSPs generate leads and grow brand awareness.
11. Embrace Industry Trends and Innovations
Stay on top of developments like IoT and conversational AI. Integrate cutting-edge tech so your managed services stand out.
12. Track and Measure KPIs
Key metrics like client retention rate and recurring revenue growth highlight what’s working. Set data-driven goals and monitor progress.
13. Implement a Referral Program
Incentivize referrals from happy customers. Discounts or other rewards encourage organic promotion and new leads.
14. Leverage Client Success Stories
Positive testimonials and case studies are powerful social proof. Promote these, with client permission, on your website and in marketing.
15. Promote Strong Company Culture
Employee satisfaction and retention results from positive culture. Foster open communication, growth opportunities, and recognition.
By following these best practices, MSPs can cement sustainable growth and success in our rapidly evolving market. Executing on these areas will allow MSPs to scale their business efficiently, delight customers, and keep competition at bay.