AUTOMATION
Don ’ t Overlook The Low-Hanging Fruit
You already know that more referrals can translate into more clients and revenue . But did you know that referrals are more likely to become your BEST CLIENTS ? It ’ s true .
In fact , a recent study published in the Journal of Marketing examined 10,000 customers at a German bank . Half of them were referrals , and the other half had become customers through other marketing efforts . Over time , the referred customers proved to be much more valuable because they were 25 % more profitable for the bank , they were 18 % more likely to stay a customer , and they had a 16 % higher lifetime value .
As valuable as referrals are to your business , your profits , and your long-term sustainability , most MSPs take a weak approach ( or worse , ZERO approach ) to attracting and signing on referrals . In fact , most simply WAIT , HOPE , and PRAY for more referrals to fall out of the sky . That ’ s not an effective business model .
The most successful MSPs have learned that you can be proactive in securing more referrals . And because it ’ s automated , you ’ re essentially building a referral system .
It starts with an inspiring call to action and incentive . After all , simply including a small blurb like “ We love referrals ” in your email signature won ’ t move the needle . Instead , offer reasons why actively searching for referrals for you will benefit either their business or them personally .
Yes , bribery works . A simple gift card will entice more clients to hustle and find referrals for you . Research confirms that 39 % of people surveyed by the consultancy Software Advice agreed that a financial incentive would make them “ much more likely ” to refer someone to a brand they love .
Next , with basic marketing automation , you can quickly create a series of emails targeting your clients . Each email can offer a different reason or unique incentive to bring referrals your way . Because the entire email is dedicated to referrals , you ’ ll be surprised how many clients start helping you out .
Upsell Your Existing Clients
MSPs tend to get marketing tunnel vision . They spend most of their time chasing new opportunities and new prospects for new monthly recurring revenue — and these activities are critical to success . However , if that is ALL you are doing , then you are largely ignoring what is easily considered the lowest hanging fruit : your current customer base .
Unfortunately , many MSPs are hesitant to market to their existing clients out of fear that they are somehow taking advantage of a customer . Rather than carry the mindset that you ’ re taking advantage of them by selling what they don ’ t need , adopt the mindset that you ’ re HELPING them and find ways to add value . The fact is that there are always more products and more services that your clients want and need for their businesses . And because they already know , like , and trust you , it ’ s
24 | MSPSuccessMagazine . com • VOLUME 2 ISSUE 3