With competition for new customers growing fiercer by the day it’s prime time for MSPs to reassess their sales and go-to-market (GTM) strategies, says Kathryn Platt, Head of Indirect Business, Vodafone UK (Comms Vision Platinum sponsor). Here, she discusses the pivotal GTM success factors and strategic actions that will drive differentiation and competitiveness for ambitious MSPs.
The need for MSPs to more deeply engage with customers and fully understand their requirements has never been so critical. And establishing how to drive differentiation and value in a rapidly evolving marketplace has also become a top priority for MSPs. From the outset, GTM strategies should be focused around creating differentiation through the full spectrum of customer engagement approaches, whether it be simplified user platforms, excellent customer service or a unique digital offering that makes MSPs easier to do business with.
Vodafone believes there are three interconnected success factors for resellers and MSPs to focus on as they transition their GTM strategies towards closer customer engagement, business transformation and the CX demands of end users. Firstly, MSPs need to consider how they can position their service within a TCO (Total Cost of Ownership) model (for example, investing in a new technology to drive savings elsewhere and/or open new revenue streams). Secondly, customers are now familiar with self-service portals, and their expectations are that 90 per cent of interactions will be digital and visible in one place (as part of a digital ecosystem). Thirdly, MSPs must be creative in adapting to inflationary pressures, such as an increasing cost base and sustainable business model, and lean on the expertise of technology partners.
Customer engagement is not just about how much MSPs can save customers, but how they can leverage technology to enable a seamless and efficient service. Understanding the future intentions of customers is also vital to securing new business and long-term growth. Businesses are more tech-savvy than ever and with that comes the expectation that technology will help them drive productivity and develop even closer relationships with their own customers.
Overcoming challenges
But there are several challenges facing sales, commercial and marketing leaders in the channel. The commoditisation of mobile and fixed connectivity services against a backdrop of rising costs caused by the current economic climate leaves little room for innovation or adding value. In addition, the inflationary impact on price rises driving pre-to-post (P2P) erosion means customers are demanding better prices at renewal as their spending becomes more restrained.
There is a huge opportunity for MSPs to open up their sales and marketing potential if they remodel what they are traditionally known for and commit their GTM strategy to specific technologies and markets
Moreover, transactional technology upgrades have effectively commoditised pricing for a long time. While this offers great savings for customers it does reduce the MSP’s ability to layer on additional value. This requires MSPs to make tough decisions about their future growth. To stay ahead of the GTM curve and to ensure a competitive advantage they need to make the right long-term commercial decisions by investing in the strategic relationships that will help drive their business.
In a competitive landscape, MSPs need to play to their strengths to stand out from the crowd. This may mean making a commitment to new technology rather than focusing on existing tech. If MSPs are delivering unique value they need to be prepared to charge more rather than chase lower margins. A great example of this would be the rise of exciting AI solutions like virtual assistants, large language model chatbots and automated response systems.
This means that an informed and effective customer engagement strategy is vital. These approaches must pivot towards offering bundles and best of breed services backed by a compelling narrative to outline how they can unlock real value that helps the customer achieve their objectives. At Vodafone, we understand MSPs are expected to become experts and we can support them with the right infrastructure (for example, digital portals) to support their customers.
We must also remember that the competitive landscape for MSPs is more aggressive than it has ever been. And there are some ‘false truths’ to contend with, such as the misconception that it is difficult to change providers, which only creates hesitancy for customers even when presented with new offers that can potentially provide greater savings.
Yet with challenges always come opportunities. While customers are more aware of the role technology can play in developing their business, there is still uncertainty about how to bring these benefits to life. It is also becoming increasingly difficult for MSPs to keep pace with the technological demands of customers due to complex back-end systems. MSPs need to work with their technology partners to meet the growing expectations of their customers, helping them stitch together complex engagement strategies across IT and managed services, ensure slick integration journeys, create better customer experiences and develop bundle propositions that address customers’ growing technology requirements, allowing them to refocus on their core business.
There is also a huge opportunity for MSPs to open up their sales and marketing potential if they remodel what they are traditionally known for and commit their GTM strategy to specific technologies and markets as a specialist. The most successful MSPs will retain their core strengths but diversify quickly into different areas. This agility will enable them to partner with strategic suppliers and provide opportunities through mergers and acquisitions to combine services.
About Comms Vision
Comms Vision is the leading annual leadership forum for CEO, MD and CTO delegates making up the major league of the UK MSP community. To find out more visit www.commsvision.com