Sales isn’t your strong point? You’re not alone. Lots of MSPs are missing the mark when it comes to cross-selling. Surprisingly, many sell just one solution to their clients and thus miss out on real profitability and long-term value.
The probability of selling to an existing customer is up to 14 times higher than that of selling to a new customer. [Business 2 Community, March, 2016]
But cross-selling is easier than you think. You’re probably presented with opportunities every day to offer complementary products or services to an existing customer. When you succeed in cross-selling your services or solutions, you increase stickiness and drive recurring revenue for your business. And your customers? They save time by buying supplementary products they need from one place.
Let’s look at these effective cross-selling strategies:
- Identifying cross-sell opportunities
- Bundling done right
- Creating a great customer experience with cross-selling
1. Identify cross-sell opportunities
Suppose you stroll down to your local Apple store to buy a new MacBook. When you’re at the checkout, the cashier recommends that you purchase supporting products like AppleCare and additional software. Clever, right? You just witnessed cross-selling in action.
As in this example, cross-selling typically happens at the point of sale. So if you’ve ever bought anything from Amazon, for example, then you’re likely familiar with their cross-selling pitches, such as “Customers who bought this item also bought” and “Frequently bought together.”
It’s easier to suggest new products when you’ve already established trust with a satisfied customer. To start cross-selling, you’ll want to identify your most loyal customers or those most likely to purchase an additional product from you. Of course, there are exceptions; not every customer will be quick to jump on your product recommendation.
Next, pay attention to cross-selling opportunities while talking with them. Do you notice any questions that continuously pop up, either in conversations or email exchanges? If so, start thinking of a new product or service that can address their specific pain points.
Emphasize the benefits
When you pitch an additional product to your customer based on their needs, make sure that you point out how it’s going to improve the operational efficiency of their organization. For example, if you cross-sell VoIP services, you’d focus on the benefits that the customer cares about, such as big cost savings, unlimited minutes, and easy-to-use features that are ideal for working both inside and outside normal business hours.
Bottom line: Avoid a generic pitch that merely lists the features of the product. Instead, you need to pitch the solution by highlighting how the product addresses the customer’s problems.
2. Bundling done right
Bundling your services is a big cross-sell opportunity. With bundled services, your clients benefit from multiple services at a lower price than if they were to purchase these services separately. However, it might be difficult to offer a service bundle if you’re a small MSP or restructuring from break/fix. You might also lack the manpower and expertise to effectively manage their IT.
Looking for a solution?
You can boost your profitability and get a leg up on the competition by partnering with a trusted provider like SherWeb. This way, you won’t have to do any of the heavy lifting.
Bundling helps you:
- Reduce churn
- Drive revenue and profitability
- Provide convenience and value to your clients
Each of your offerings should be fully supported and operational. Take SherWeb’s VoIP phones as an example—all you need to do is plug and play. This is a smart way to deliver a simple solution to your client while generating high-profit project revenue.
3. Create a great customer experience with cross-selling
Here’s a typical cross-selling scenario:
You’re talking to your Office 365 client about integrating Dynamics CRM to boost their organization’s performance, either as an on-premises solution or cloud application. Consider focusing on the aspects they’ll care about most, such as:
- Advantages: How will the product simplify their day-to-day processes, save them money, and increase productivity?
- Price: Does the price demonstrate the value of the product?
- Support: Can you provide them with the level of support they need? What can you give them in terms of customer experience that will set you apart from the competition?
Capture Growth & Reduce Churn
If you’re only selling single subscriptions, you’re letting your clients slip through the cracks. They’ll eventually switch to your competitors, and you’ll lose out on the opportunity to grow your revenue.
Cross-selling can help you secure long-term customer loyalty and position yourself as more of a business consultant than just a generic technology provider. You’ll also make it harder and costlier for customers to switch to other providers by offering them affordable bundled solutions.
As an MSP, you know that sales is the lifeblood of your business. Need help with sales pitches, closing deals, and providing round-the-clock technical support to your customers and prospects? Learn all about our partner program that guarantees success.
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