Let’s face it. If you’re an MSP reselling Office 365, your biggest challenge is differentiating yourself in a competitive market. And sometimes, you might even feel like you’ve reached a plateau.
As a long-time Microsoft partner and client, we have a bird’s eye view of the Office 365 market and a good idea of the challenges that many MSPs face. Here are two things we’ve learned over the years:
- Most MSPs don’t have the time to hunt for a competitive edge. They’re too busy managing their clients and pitching to prospects. How could they possibly plan for their future success?
- While Office 365 is a great foot-in-the-door product, it’s not where you’ll make your most margins. In fact, most MSPs that we talk to find it difficult to make Office 365 profitable.
As you’re reading this, there’s a good chance that you agree. However, just because the commoditization of Office 365 has taken a bite out of your profits doesn’t mean you have to cave in to the threat of new and larger competitors. Remember, you can equip your MSP business for greater success by offering clients something the big players don’t. You can offer high value.
It’s easier said than done, right? Read on to learn how you can get involved in your client’s business and increase your margins.
By offering them a diversified bundle of solutions and services around Office 365, you’ll be able to address their needs, bringing much more flexibility and value to their businesses. You’ll create high levels of efficiency and gain stronger margins.
But is an Office 365 bundle a profitable strategy for your MSP growth? Absolutely. Here’s the proof.
Did you know?
According to Everest Group’s annual report, more MSPs are offering consulting and value-added services to increase their recurring revenue. Wondering how successful MSPs separate themselves from the pack? Another study shows that they focus on finding ways to differentiate their service offerings from their competitors and clearly show this value to their clients.
So what does a margin-boosting, competitive MSP offer look like?
The answer is simple. You can increase your monthly recurring revenue from upselling and cross-selling the different services you offer around Office 365. If you haven’t started doing so, now is the time to take advantage of bundling opportunities.
The Benefits of Bundling
Bundling Office 365 with other top-line products is key to making real profits for managed services. Here’s why.
Your clients can easily see the advantages of getting several products for the price of one.
The more value you bring to the table, the more they trust you and stick with you. Because your bundle represents high value, you’re more likely to become a key part of their IT needs and decision-making.
In other words, it all boils down to giving them a good reason to buy Office 365 from you instead of your competitor.
All you need is a winning bundle. Fortunately, you don’t have to search far and wide to find one or invest time to build one yourself. (Cue the drum roll.)
Sherweb’s New Office 365 Offer
We’ve heard out many MSPs and examined the challenges (and opportunities) in the market, and we wanted to help. We saw a need to build a diversified portfolio that they can use to show incredible value, differentiate themselves, and increase margins with their Office 365 offering.
Therefore, we’ve restructured our Office 365 plans so you can stand out from the competitors and increase your margins.
When you sign up for our Office 365 plans, you’ll receive security, backup, and e-learning solutions at no extra cost. This diversified bundle is designed to meet a variety of your customers’ needs. For example, you can upsell the solutions included in your Office 365 bundle at a premium.
Here’s what’s included in the bundle.
Studies show that 71.4% of Office 365 business users deal with at least one compromised email account every month. The biggest threats to your business data are ransomware, phishing, and careless employees.
That’s why we built Office Protect from the ground up. It’s a simple solution that strengthens an Office 365 environment with best practice security settings in just one click. So when you add an Office 365 plan, your Office Protect account will already be active for you.
All you have to do is simply set up your security settings for the Office 365 users in your client’s organization. You won’t ever have to manage these settings again because they continually work to protect data.
Think of the opportunities when you build a profitable security service offering around the risks in Office 365.
For example, you can offer security consultation, training, monitoring, and management services. You can get even more involved with your clients’ business security by offering regular touchpoints to keep them in the loop about suspicious activity. They’ll feel safe knowing you can better protect them against the growing security risks in Office 365.
Shockingly, 68% of SMBs don’t have a disaster recovery plan. It was clear that we needed to add a simple and efficient disaster recovery strategy in the bundle.
Therefore, we added easy and fast backup services with our Online Backup solution to the bundle. With backup, you can safeguard your clients’ data, including their Office 365 mailbox. Once your clients back up their critical business data with you, the better the relationship you will have with them.
By offering strong data protection as a managed service and an easy solution to plug other products, you can build a service offering that includes enablement, storage, and performance. It’s also a good idea to take advantage of your cloud provider’s 24/7 support, migration assistance, and data seeding. This way you can put a price tag on each and make an easy profit.
Office 365 might be a popular choice for businesses, but it looks like users aren’t getting the most out of it. In fact, they’re only using 20% of its features. To top it off, they also have to keep up with continuous Microsoft updates!
This could negatively affect you when it comes to retaining clients and keeping them happy with the software they buy from you.
That’s why organizations need an e-learning platform like QuickHelp. It’s an easy-to-use and effective tool for Office 365 users. It helps increase user adoption, productivity and long-term value through curated and gamified learning (live videos, events, on-demand library, etc.). They’ll learn how to work smarter and more efficiently with the features they use every day. You can show your clients that they can benefit from so much more than just a mailbox when they buy an Office 365 plan from you.
Consider the following ways in which you can drive revenue with an e-learning tool like QuickHelp:
- Automatic licensing
- Onboarding assistance, integration, and configuration of the software
- Consultation services on continuous industry updates to Microsoft apps and features
Why You Should Take Advantage of the New Office 365 Bundle
What’s stopping you from using a unique bundle to clinch a sale and convert it into revenue growth over time? Your bundling strategy is not only an important step to building a successful managed service business; you also need a concrete plan for how to introduce your Office 365 offering. Otherwise, you could miss out on opportunities if you can’t show prospects why they should do business with you.
Build Monthly Recurring Revenue with the New Office 365 Bundle
The Office 365 bundle is a great first step to be more profitable while maintaining business continuity for clients. Once you start seeing the results, then you can opt for the upgrade, the Smart Bundle, and build more recurring monthly revenue.
By having full and ongoing access to the complete bundle, you can use the solutions to your full advantage with your current clients and in sales meetings with your prospects.
And, of course, you won’t have to do it alone. While you provide this one-stop shop, you can always leverage Sherweb’s support, migration, onboarding, and enablement services to accelerate your growth.
Bottom line, focus on value, not commoditized services that your clients can get just about anywhere.