Generally speaking, IT managed service providers are technologists, both in training and previous professional pursuits. The managed services market is also highly fragmented, with a long list of small technology and software companies all battling for the attention and business of end users and IT service providers. The value focus in all of the selling and marketing efforts has resulted in a disturbing trend carried over from the hardware selling models: A focus on tools, technology, and features/functions. Here’s how to avoid that trap at all costs.
Remember: Only technology providers get excited about technology. The rest of the world just wants their IT problems handled so they can conduct whatever business they are in.
Retool Your Messaging
It is critical for successful managed service providers to stay above this fray and avoid the “speeds and feeds” trap that is so prevalent in IT marketing and solution selling. Tools are exactly that – pieces and parts of the overall finished service. Tools and technologies are not the services you are selling, nor are they the value you provide to your clients.
Your unique expertise and ability to deliver complex solutions to your clients, when added to the tools and technologies, is the service you deliver, and it is that expertise and unique value proposition you need to focus on when marketing and selling your capabilities.
Without question, the tools and applications you choose need to work and fit your business. Solid tools and strong technology is the foundation for any competent and quality service you deliver. However, too many MSP’s are focusing on and marketing the parts of their overall solution.
For example, the reason an end client should choose you to provide IT systems management and support has nothing to do with the tools you use to deliver that capability. The assumption by the end user is that you can provide such a service; they don’t care which PSA (professional services automation) tool you have selected to run your business. Yet many MSP’s still weave vendor literature and brands into their managed services marketing and selling materials and ignore the larger question: Why you over anybody else?
Under the Hood
Don’t believe me? Who made the transmission in your car? Are you sure? Do you care? You want your car engine to perform, but you don’t really care who made the various parts, so long as the auto manufacturer stands behind the product, right? You are buying BMW, Ford, GM, Honda, Nissan or Toyota. You are buying the value proposition and brand promise that those various auto makers deliver. You are not evaluating the combined parts and components that go into those cars which are delivered or made by third parties.
End client prospects for IT services are evaluating their decisions in the same manner. They are looking to your brand, your value proposition, when making their decision. If your value proposition is on target, and you are able to differentiate your capabilities around delivering a high quality service at a fair price, the tools you use are your choice and are irrelevant to your end clients. So long as you ensure those tools work for you, they will work for your end clients.
Of course, Seismic offers the widest selection of tools and capabilities in the market. But if it’s your value proposition or brand promise you want to tune up, Ingram Micro can help provide market-leading expertise with that also.
Justin Crotty is Vice President Services North America at Ingram Micro, Inc. He oversees Ingram Micro Seismic. Guest blog entries such as this one are contributed on a monthly basis as part of MSPmentor.net’s 2009 Platinum sponsorship.
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Tags: Ingram Micro Seismic | Justin Crotty | Managed Services Branding | Managed Services Value proposition | Master MSP
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Hi Justin,
It’s true that customers buy on what creates value for them–not what you find most valuable about your goods and services. Nevertheless, just like beauty, value is in the eye of the beholder. Some car buyers, perhaps those that purchase expensive race cars, probably do know what kind of transmissions are in their cars. As you note, whether it’s a car or IT services, the rest of us buy for different reasons–but even our reasons are not homogenous. While many IT buyers may want a third party to handle it, you may need further differentiation. That differentiation may be cost, responsiveness, your unique technology, or confidence that you won’t go out of business tomorrow. To develop a compelling value proposition, it helps to narrow your focus to those who most need your services, find out what matters most to them, and then create a very specific value proposition that speaks to their very specific needs. If they want it handled, maybe you can differentiate your company by finding out more about what handled means. For example, do they want you to check with them first to approve large expenditures–or charge you a flat all-inclusive fee so that they can just go ahead. It’s really understanding the value that helps successful brands succeed.
Barbara: Great thoughts. You’ve essentially said “find the customers’ pain points” and you’re right on target.
An example: As we scaled our own business (Nine Lives Media Inc.) we experienced a couple of site slowdowns/outtages. When we spoke with our service provider we described our business goals and anticipated growth rates. The subject of price or service fees never came up till the end of the conversation. We were in pain and we needed a solution to address the pain. Price was an afterthought while we were experiencing the pain.
We ultimately received a great managed/hosted service plan that delivered great value/bang for the buck. But the service provider didn’t lead the conversation with price. We spoke about our pain and business growth goals first.
We have addressed these issues in some very informative videos for our customers. http://www.youtube.com/user/painfreeit
Many of our customers have expressed the same questions you have posed. Great article..
Wayne:
1. You’ve gone viral
2. You’ve provided a clear launching place for your viral videos
3. You’ve got a catchy brand with “Pain Free IT”
Nice job.
-jp
Barbara -
Great point – you’ve just reiterated my message. Notice how your thoughts really speak to defining value for specific customers vs. focusing on tools and technologies. Nice to see!
Justin
Hi Justin,
Agree with all stated points. Customers just want things to work..efficiently. Although they don’t necessarily want (or need) to know which brand of tools are in your belt, MSPs should play up the use of vendor agnostic tools and solutions. We know UC is all about integration of various vendor solutions. Using tools that are vendor agnostic can be a great differentiator.
Katherine
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In my dealings with customers I find they don’t care what tools, software and infrastructure you use, they just need their business needs fulfilled. If they experience down time on their site or ebusiness it will cost them dearly and the value prop is around keeping the 5 9s SLAs in place with well defined clauses around penalties if the 9s are not upheld. Essentially the in-sourcing/co-sourcing/outsourcing provided through an MSP is the well defined set of people, process and technology wrapped around SLAs. If you can also provide details around your delivery methodology, including ITIL, CMMi, SAS 70 II and so on, you will also increase the values add. Again, I don’t think there is any value in discussing the tools and underpinnings of what technology you use for your offering, at the end of the day all MSPs more or less use the same tools, agents, appliances and so on…..”0″ value in discussing differntiation and ending up diluting the value of managed services, turning the discussing into a product sale. I have seen that over and over again trying to convert product sales reps into services reps….