The Benefits of Offering Managed Services
Below is an article on why it might make sense for resellers to implement managed services within their businesses. The article was written by GreatAmerica, one of our partners and a leader in developing and financing managed services programs for telecom and data resellers. We at CorsPro recognize the growing importance of managed services, which is why we are partnering with GreatAmerica to provide valuable, deal-winning managed services content for SalesDoc Architect that will help you win managed services deals. This content can be tailored specifically to your business and managed services program.
Managed Services is a great way to differentiate your company from the competition by locking in recurring revenue and enabling you to keep a better hold on your customer base. Together, CorsPro and GreatAmerica can help you do that!
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Managed Services: Is It Time to Make the Switch?
Written by GreatAmerica (http://www.greatamerica.com/)
The telecommunications and data industries are in the midst of transforming from product-oriented companies to service-based organizations. A lot of dealers have already begun to shift to a managed services approach. Managed services can mean different things, but in this case we are referring to communications equipment and services bundled into a communications solution for a single monthly recurring payment.
Early adopters either had a vision for where the industry was heading or saw it as an opportunity to differentiate themselves. Additionally, more and more dealers are exploring their options with managed services due to shrinking hardware margins, inconsistent cash flow and increased competition.
Although GreatAmerica works with a large number of dealers who have embraced managed services, we also do business with many dealers that are choosing to stick with their current product- or solution-based sales approach. The main reason that some dealers have not chosen to adopt a managed services approach is that they are comfortable with product-based sales, and are uncomfortable trying something new. A second reason is that their business is structured for product-based sales and break/fix service, and they are not committed to making the changes necessary to adopt a managed services approach. Another reason is that many of these dealers have gone into survival mode with the current economy and are unwilling to make any major changes in their business.
Working with thousands of dealers across the country has given us some unique insight on how the different types of dealers have performed. Our data shows that the managed service dealers are enjoying significantly higher amounts of upgrades and add-ons, as well as deal sizes that have more than doubled.
Additionally, dealers that differentiate with managed services are able to increase new sales and avoid discounting. A major benefit helping these dealers through the rough economic climate is the monthly recurring service revenue. The managed services programs also allow the dealers to control their customer base for the full length of the agreement, ensuring that they handle all adds, moves and changes (AMCs).
Potentially the biggest benefit for dealers that fully adopt a managed services approach is the true consultative (i.e. trusted advisor) relationship they develop with their customers. The dealer shares their expertise so that the customer is able to fully realize the capabilities and benefits of the technology. Customers perceive value in the on-going training, telecom advice & recommendations, and the proactive support that helps prevent issues from occurring and allows them to focus on their own business. The data we have seen over the past several years confirms that customers are more likely to remain loyal to ‘trusted advisors’ and upgrade as emerging technology becomes available or do more add-ons if they have been helped to realize the full benefits of their communications solution.
Not everybody is ready to adopt a managed services approach, but the opportunities are endless for those that are.
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On October 7 at 2pm EDT, CorsPro and GreatAmerica will be conducting a joint webinar where we will be discussing the benefits of managed services in more detail. In the meantime, feel free to contact us if you have any questions about how to implement managed services pricing, configuration rules, output content and other elements into SalesDoc Architect!!