Integrators regularly ask Solutions360 for advice about how to grow their services revenue.
It often goes something like this,
“How do we start this, because we have a break fix business? We get calls from our clients and we are very reactive and we take care of them, but we really want to build that business to be a higher percentage of our overall revenue. How do we do that?”
Today, Steve Riley, from Navigate Management Consulting, outlines the three steps integrators should take to grow services revenue, even if you are starting to build a services department from the ground up.
“Really, there are multiple steps, and there is not one correct answer,” says Riley. “It depends on how much of an investment you want to make and how quickly you want your efforts to come to fruition.”
The biggest question and the first thing integrators need to do is determine their SLAs.
An SLA is a Service Level Agreement, it is essentially your performance criteria. This is where you outline your response time, your resolution time, your onsite time, et cetera, from whenever you get the initial call or ticket, and you guarantee that you will be able to perform in a given timeframe.
Second, you need to productize the offering.
Integrators need to create an offering that is understood by the entire team. Especially the salespeople, who must be able to accurately describe your services, so that they can properly sell them.
A big part of this is pricing. Integrators need to figure out how to price their service offering in a way that is easy for the sales team to quote and include on proposals.
Make it easy for your sales team to create estimates that help integrators grow services revenue.
Third, and most importantly, integrators need to perform.
Contract renewals are the top way for integrators to create recurring revenue. In order to earn that renewal, integrators need to deliver on their SLAs. You need to have your people fully trained, and in place to perform as required.