Managed Services: Offering Outsourcing & Security
To sell managed services, an alternative strategy must be adopted.
The end user’s perspective
The speakers at many sales meetings I’ve attended have presented stunning new managed services to an integrated sales team. Often, shows incorporate many features that benefit clients, including cloud-based technology and data, mobile device access from anywhere, proactive service options for preventing issues before they occur, and protection against outrageous cybercrimes. Cool stuff is completely covered by reasonable recurring fees.
Many sellers believe that purchasing these services would not pose any problems after receiving these offers. Clients are offered managed services, and they realize that it is a long way from being simple to sell.
Sellers must consider the situation from the point of view of their clients to effectively sell managed services. The individual in question may consider moving up to system management if they don’t have an electronic security system. If you are transitioning from a cloud-hosted and integrated system to another system, you will also experience the same kind of discomfort.
Managed services are not about selling features and advantages – everything has to do with managing change. If a salesman does not grasp this viewpoint, he will bang his head against the wall trying to understand why his clients don’t understand it.
In reality, the client probably understands this and is unwilling to change. The following are a few interesting points about the effects of this change:
- Currently, most ideas and decisions are made collaboratively in companies. The average small business owner typically does not have time to work through complete decisions. When examining the change to managed security services, probably, some people involved in the decision will not care for the change and the company will return to what they know. A single individual has the potential to impact a large group, regardless of whether the decision is the right one.
- Although IT-cybersecurity outsourcing (which can include personal data) always seems to cause resistance, outsource managed outsourcing solutions can be especially problematic.
- Payment methods for this service are unique and usually expensive. The vast majority of salesmen fail to correctly report the value of managed security services included in the recurring charge. For these companies, this is a significant change, and it needs to be clarified appropriately, or else they will return to what they’ve always done.
Operational vs Capital Expenditures Aren’t Everything
When we moved into our neighborhood a couple of years ago, I met a man named Ames who needed to take care of our lawn and yard regularly. My return on investment (ROI) on buying my hardware and supplies was not calculated when I was quoted the price of $ 125 per month. An ROI of around eight months would be achieved if I did. I couldn’t serve him.
I didn’t calculate because the value of James Ames isn’t in the money I save on a grass cutter, hammer, etc. – The value is that he does a better job than I could, that I never have to harvest grass again in my yard. I don’t need to purchase new equipment at regular intervals.
The vendors were instructed that the expense of managed services includes most capital expenditures (CapEx) and operating expenses (OpEx). Moves like this are valuable. Nevertheless, it’s anything but a small part of history.
There is a problem that most sellers report the OpEx versus CapEx argument in general, provoking an insightful client to bring out a counterpoint. Once the meter runs out, most sellers are obligated to keep their prices.
This isn’t a discussion about OpEx versus CapEx, yet what is included with OpEx.
As an example of hosted access management, regular payment (OpEx) generally includes the cost of software, the cost of an IT device, real-time and immediate updates, redundancies, SSA charges, equipment support charges, robust data protection, and so forth. With a recurring hosting expense, end users get the most ideal and cutting-edge quality, save time for team members, and absorb some capital expenditures. James Ames provides a prime example of significant value for money.
Sellers should be fully aware of the advantages of their organization-driven services and disclose those advantages before discussing a capital expense shift. We typically discuss the entire list of items included for the service and end by saying: “clearly, we can lease this regular service to help reduce your capital expenditures.”
The sales process for existing customers is more difficult than for new prospects
Vendors usually approach their most loyal and best clients before approaching other accounts. Since the sellers know and trust them, why not listen to them and take advantage of them? It interferes with human nature, as shown in this model:
During the secondary school baseball season, my wrestling trainer encouraged me to move from the less closed position I had used since the minor league to a somewhat more open one. While I respected this mentor, I did not accept his recommendation after playing with him for a very long time. Changing was not an issue for me and I understood why it was necessary.
In the late spring of that year, I spent seven days at school baseball camp. I was encouraged by my instructor to open up my position in one-on-one appraisals, using almost the same words as my secondary school mentor. After listening carefully, this small change led to a great deal of improvement in my golf swing.
A secondary school mentor who I trusted gave the same advice about 30 times without achieving any progress, and so I followed the advice of a mentor I trusted with trouble for the first time. Where does it come from? In my opinion, it is human to value the advice of specialists who understand just how to exhort family members or friends to trust them more. Many parents have likely been touched by this marvel.
Retailers who wish to transition a client to managed services should also consider this dynamic. When a client who knows and trusts their vendors is asked to change to a managed service model, they are likely to resist. Answers typically include something like, “How about we stick with what we did before” or “If it isn’t broken, don’t fix it.”
A customer may return from a workshop where a speaker from the security division discussed the advantages of SaaS and agreed that they should consider this model. As compared to the expert, the speaker did not clarify the benefits better. In particular, the “master” was seen as extra cautious by the customer due to his outsider status. The nature of human beings is once again at work. I am aware of the fact that managing services for an existing client can be more troublesome than managing services for a new client.
A way to offer managed services to the current clients is to recognize the problem they were experiencing before rejuvenating the possibility of managed services. The second characteristic of individuals is that they don’t want to change until there is a problem. Upon discovering an issue and discussing it with the client, the sales rep will tend to change his assertion to “if it doesn’t break…” – “we must fix it”. Continue working with existing clients until they understand the scale of the issue, and then bring a solution to the managed services.
We are now looking at things from a different perspective. Offering managed services to new perspectives is much easier than offering them to existing clients during a meeting. As a newcomer, the sales rep has the advantage of being listened to, and if they introduce themselves well, the crowd will listen like the best mentor I’ve known.
With managed services, system integrators are now in a position to dominate the business sectors. Vendors might discover demand they didn’t know existed if they follow these ideas. Managed services will increase vendor workloads.