When faced with the need to secure their customers’ SaaS Applications, consistent feedback heard...
3 Ways MSPs Can Use the Changing Security Landscape to Create Monthly Recurring Revenue
In the world of managed services, monthly recurring revenue (MRR) is the bread and butter of any successful MSP business. It’s the reliable stream of income that allows MSPs to sustainably grow their business and provide the best possible service to their clients.
Today we find ourselves operating in a unique business climate. The state of the economy has made the SMB customers that MSPs support much more price sensitive. At the same time, the ever-increasing risk of a cybersecurity attack provides MSPs with an opportunity to create new revenue streams.
It may seem impossible to increase MRR at a time when customers are cutting budgets, but let’s look at a few strategies you can use to achieve this.
1. Make Cybersecurity Services Mandatory
As the frequency and sophistication of cyber attacks continues to increase, the need for robust cybersecurity measures is more important than ever before. As an MSP, you have the opportunity to leverage this trend by making security services a mandatory part of your offering. By doing so, you can help your clients protect their critical data and operations, while creating a lucrative revenue stream for your business.
The range of security services that MSPs can offer is broad and may include network security, email security, endpoint security, and data backup and recovery. By combining these services into a comprehensive offering, you can provide your clients with the peace of mind they need to focus on their core business activities, while keeping their sensitive corporate data secure.
Additionally, by bundling security services into your managed services offering, you can differentiate yourself from your competitors and charge a higher price point for your offerings, thus increasing your MRR.
2. Provide Managed Cloud Services
As the workforce becomes more mobile, businesses are relying on cloud applications to enable their employees to access corporate data from anywhere, at any time. By offering managed cloud services, you can provide your customers with the latest and greatest tools to help their employees work more efficiently both inside and outside of the office … without the need for a significant upfront investment.
Managed cloud services can include everything from cloud-based storage and backup solutions to Software-as-a-Service (SaaS) applications such as Microsoft 365 and Google Workspace. By offering these services, MSPs can meet the quickly evolving needs of their clients.
In addition to offering cloud services, MSPs can also provide SaaS monitoring to keep those cloud applications secure. By monitoring user activity and identifying unusual behavior, MSPs can quickly identify and mitigate potential threats before they can become major issues. This added layer of security not only provides peace of mind for clients, but it also positions you as a proactive partner in your clients’ success. (Pro tip - SaaS Alerts can help with this!)
3. Offer Consultancy Services
Most MSP customers don’t know what they don’t know. But you can help. Beyond simply providing technical support, you can also offer consultancy services to help clients make strategic decisions about their IT investments.
By offering consultancy services, you can become even more valuable to your clients and position yourself as a trusted advisor who can provide guidance on everything from overall IT strategy and planning to cybersecurity best practices.
Cybersecurity consultancy services are also in high demand, as most SMBs have become increasingly concerned about the potential impacts of data breaches and other cyber threats. MSPs can provide cybersecurity assessments, audits, and training to help clients mitigate risks and keep corporate data from ending up in the wrong hands.
In addition to simply providing advice and guidance, you can also help clients navigate the complex world of cyber insurance. By helping clients understand cyber insurance, you also help them understand their risks and ensure they have the right coverage in place to protect their business.
BONUS! Focus on Customer Retention
Customer retention is critical for any business. Retaining existing customers not only helps you generate more revenue from the same customer base, but also saves you the time and resources that go into finding new customers.
To ensure your customers are not only satisfied, but wowed by your services, it’s important to be responsive to their needs and consistently demonstrating your value as a trusted advisor. Make sure you check in with them regularly and address any issues they may have. Better yet, stay ahead of their needs by providing proactive recommendations and solutions that will help them improve their operations and achieve their business goals.
Happy customers not only remain loyal customers for the long-term; they’re also more likely to purchase additional services and refer new business.
As we continue to face economic uncertainty and the risk of cyber attacks increases, MSPs must find innovative ways to boost their MRR. Offering security services and serving as a trusted advisor to clients can help you differentiate your business from competitors, charge higher prices, and increase MRR.