Top 4 Ways to Grow Your IT Services Business

The IT Service Provider industry has been facing unprecedented challenges and changes. The increasing competition and lack of differentiation among IT Service Providers are just some of the many factors that are eroding the profit margins in the industry. In this blog post, we share 4 tips to grow your IT services revenue and stay ahead of the curve.  

Tip 1: Grow new net customers   

According to the Voleer APAC State of IT Outsourcing Industry Report 2021, web searching was ranked as the first go-to activity for 29% of the surveyed organizations when researching for IT Outsourcing providers, followed by word-of-mouth. 

To grow your new customer base, we recommend focusing on digital marketing strategies to help position your website to the top of the search engine results page. Adopting good SEO and SEM marketing strategies such as including relevant keywords to direct searchers to your site, will be key in helping achieve that goal.  

In addition, featuring customer testimonials will also help grow your brand base as it increases your credibility as a company to engage services with.  

 Tip 2: Increase win rate 

Now, how do we capture the attention of new customers? One challenge ITSPs face is the difficulty in differentiating themselves from competitors. A way to overcome that challenge is to offer value-added services that are tailored to the needs of your customers. This will give your customers a reason to pick your organization over other ITSPs. Voleer’s IT assessments can help you discover specific areas in your customer’s environment to talk about and provide unique insights that can capture their attention. These assessments can be offered as managed services which allows you to remain competitive and profitable, without underpricing your services. 

Discover how you can further utilize our IT assessments to your advantage in this blog. 

Tip 3: Increase average revenue per account 

One way to increase revenue is to sell additional services to your customers. It is easier to approach existing customers than new customers, as there is an established level of trust in your products and services that you can leverage on. 

Upselling or cross-selling complimentary services together with your core product allows you to provide a comprehensive solution to your customers. Uncover opportunities for solutions and services by running Voleer assessments on user account security, usage and license, Microsoft Teams, and more.  

Before upselling or cross-selling your services, one thing to note is the importance of explaining how these additional services can help solve existing or discover new problems for your customers. This will give them a better picture of their ROI and drive them to make a purchase. 

Moreover, these additional services will give your organization a stream of recurring revenue. This provides predictable month-over-month revenue that can help in terms of budgeting and investing in growing your business. 

Tip 4: Decrease churn rate 

Value-added services can also increase customer retention and form stickier relationships with your customers.  According to a research study by McKinsey & Co. and Gainsight, companies that cross-sold to at least a third of their customers had the lowest churn rate. 

Add value to your customer’s experience by conducting assessments and providing suggestions to help increase their ROI. Customers are less likely to switch providers if they feel that they are getting value out of your services, reducing the churn rate. 

The guidance provided by the assessments will elevate your organization to a trusted advisor and lead to other opportunities. Hard selling your services can ruin your brand reputation as a trusted service provider. To be successful, know your customers well so that you can provide suitable solutions that will have higher rates of adoption. Therefore, it is crucial to position yourself as an expert that can value-add to your customers. 

Despite the tough challenges in the industry, there are still opportunities for growth and profitability that IT Service Providers should take advantage of. Sign up for a Voleer account with a free trial to find out how our assessment tools can help better enhance your services today! 

For more insights and tips on the challenges, growth opportunities and how IT Service Providers can improve profitability, download our whitepaper here. 

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