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Business Reviews for MSPs with Marnie Stockman

channelWise Team • May 25, 2023

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In the world of managed services, customer relationships are critical to success. To enhance and strengthen these relationships, MSPs must adopt a human-first approach prioritizing customer experience and outcomes.

In this Ask the Expert episode, Kathryn Rose, CEO & Founder of channelwise, interviews Marnie Stockman, a channelWise expert, and CEO of Lifecycle Insights, on practical steps for MSPs to use Quarterly Business Reviews (QBRs) to improve customer relationships and business outcomes. They discuss topics ranging from identifying the most valuable clients to conducting business reviews and sharing insights on how MSPs can take the first step toward building more meaningful customer relationships.


Highlights:


  • A human-first approach is crucial for MSPs to enhance or strengthen customer relationships.
  • MSPs can improve their customer experience through process maturity and automation by defining and digitizing their process and then moving on to automation.
  • Business reviews are essential for MSPs and their customers as they help build and maintain the relationship between the MSP and the client. MSPs should conduct business reviews at a proper cadence to engage the client in the value the MSP brings to them.


How can MSPs use a human-first approach to enhance or strengthen customer relationships?



A human-first approach is crucial for MSPs who want to enhance or strengthen their customer relationships. When a customer comes in with a support ticket, they need human compassion and a quick solution to their problem. That's why our company's number one core value is "raving fans," and we do not have a sales team. We want to make sure that customers feel heard and appreciated.


I like to use my favorite equation: customer success equals customer experience plus customer outcomes. To ensure customers have a positive experience, it's important to approach conversations with a smile and make it about the customer's business, not just the technology. People remember how you make them feel, not just what you say, so it's crucial to create a positive experience that customers will remember.

How can MSPs improve their customer experience through process maturity and automation?


MSPs can improve customer experience by focusing on process maturity and automation. MSPs should start by defining and digitizing their process and then move on to automation.
 
At the beginning, we often start with an undefined process of solving problems for our customers. However, we must look for patterns and opportunities to create pleasant customer interactions, even if they are automated.


It's important to note that many MSPs do not jump from digital to automated, but doing so can transform the business. We should use tools that bridge the gap between digital and automated processes, which can help speed up business and improve the overall customer experience.


Why are business reviews important for MSPs and their customers?


Business reviews are important for MSPs and their customers because they help build and maintain the relationship between the MSP and the client. Business reviews should be conducted at a proper cadence and should not just be a touchpoint call. They are an opportunity to engage the client in the value the MSP brings to them. The whole realm of customer success is a young organization in the managed services world, and business reviews have been around for a long time in the enterprise world and the world of consulting.

MSPs came to business reviews by way of everybody jumping to remote monitoring. As a result, they started losing contact and the relationship with their customers. Thus, it is mission-critical for MSPs to offer business reviews to their clients to let them know what they are doing for them and engage them in the value they bring. The maturity of the business review needs to be more strategic and less tactical, where clients can be engaged in the MSP's value.


Do you recommend doing business reviews with all clients regardless of their size?



As a business consultant, I recommend segmenting our clients based on their value. We look at their monthly recurring revenue (MRR) per process and effort to determine the proper cadence of business reviews for them. We typically focus on high-value, high-effort clients, meeting with them monthly or quarterly and meeting with clients that make up over 10% of our total revenue more frequently because if we lose them, it could significantly impact our business. We also meet with high-value, low-effort clients to find ways to get more referrals. We remarket and rehab conversations with low-value, low-effort clients but still provide them with some type of human interaction once a year. We look closer at high-effort, low-value clients and either renegotiate our terms with them, get them off of whatever software or technology is causing them pain, or even fire them. Not every client needs a quarterly business review, so we ensure they receive the cadence they deserve based on their value to our business.


Where do you recommend starting with identifying the most valuable clients for a managed service provider?



As a managed service provider, we look at tracking customer health and keeping track of all the characteristics that define our clients, including those that have been overlooked in the past. We often find that low-effort clients are a gold mine for opportunities because they have the most growth potential. So, we recommend looking at our verticals to see which industries are performing well and identifying clients with growth potential. Tracking high-effort and low-value clients is also important, as it can drag down employee morale. It's helpful to identify these clients and consider increasing their payment or fixing the root cause of their issues, or even deciding to part ways with them. Doing this will have a positive impact on both our customers and our own employee morale.


What are the challenges with conducting business reviews, and how can MSPs overcome them?


I suggest starting by automating the process of tracking customer health, especially for those low-effort clients who are a gold mine in terms of growth potential. It's important to keep track of their characteristics and anticipate any changes in their business, like being acquired or expanding their offices.

Additionally, it's important to identify high-effort and low-value clients who may be dragging down company morale and cutting them loose. One of the biggest challenges for MSPs in conducting business reviews is getting clients to come to the table. This is often because the previous business review wasn't strategic and engaging enough. To overcome this, it's important to focus on the client's business outcomes, how technology can drive them, and talk about new and upcoming technologies that can improve their business. By engaging clients this way, they will be excited to have the conversation and show up to the table. Finally, to address the time challenge, it's important to define and automate the process of conducting business reviews so that it can be easily repeated.


What should be included in a business review for an MSP's clients?



A business review should always start with an executive summary of the client's goals and objectives. Everything in the report should align with those goals, including the risk assessment, which should outline any potential threats that could impact the client's ability to achieve their objectives. From there, I would make recommendations to improve the client's risk posture and overall productivity, driving the budget forecast for the remediation plan. While asset lifecycle management and user management inventories are important, they are ancillary to the main conversation around the client's business goals and risk assessment. If I have any supporting documentation, such as customer satisfaction or cybersecurity training data, I would include that as well. Ultimately, the drivers of the conversation should always be the client's business goals and the risk assessment aligned with best practices.


How can MSPs who haven't had conversations with their clients about their business goals initiate those conversations?



Step one would be to check out their website to infer their intent, and look at competitors' websites to see how they differentiate themselves. Step two would be to say, "I've been recently talking with some of my other clients about their goals for the next 18 months because we've been able to find ways to help make them more productive, save them a full-time employee, etc. So what are you thinking of doing for the next 18 months?"

As an MSP, it's important to ask the right questions to get them talking. A simple question like, "What is one thing you wish technology could do for you?" or "What is one thing you do all day, every day, that you hate doing?" can uncover problems that can be solved with technology. Because you never thought to ask the question, you might not know it was a problem.


What are your final thoughts on practical steps for MSPs to use QBRs to enhance their business and customer relationships?



I would say defeat the blank page or eat the elephant one bite at a time, whichever your favorite phrase is. But start somewhere and start now because it is where you will differentiate your business from the human element. So start somewhere. And it doesn't have to be perfect right out of the gate, right? So if you are going to start with an asset inventory, start with that. But by golly, discuss business goals while you're there.

For more advice about business reviews and QBRs, visit Marnie’s profile on channelwise.
Check out channelWise.com for more experts to help you with your business or career.

Note: Transcript is edited for time and clarity.

What free or low-cost tools can help me market my MSP business?

By The ChannelPro Network in Collaboration with the channelWise Team • February 12, 2024
One of the biggest marketing challenges I see with managed services providers is identifying the right marketing channels and tactics. Navigating the maze of marketing tools can be a daunting task for MSPs. Here are some of my favorite tools that won’t have you digging deep into your pockets:  Interview Your Ideal Clients Have you ever thought about simply having a chat with your ideal clients? It’s a classic, cost-effective way to understand what your clients really need and want. Engaging them in interviews can unveil their preferences, needs, and challenges straight from the horse’s mouth. And it’s free. Incorporate Tools Like ChatGPT AI has been making waves in the marketing sphere, and one tool that stands out is ChatGPT. This multipurpose tool can assist with content creation, SEO optimization, email marketing support, and more. Start with a free plan, and if it meets your needs, the paid plans kick off at $20 per month. Google Analytics & Search Console For a deeper dive into your website’s performance, Google Analytics is your go-to tool. It’s a treasure trove of data, offering insights into traffic, user behavior, and the effectiveness of your marketing campaigns – all for zero cost. Alongside it, Google Search Console can be your ally in optimizing your site’s visibility on Google, also without costing a dime. Try Ubersuggest SEO is a linchpin for online visibility, and Ubersuggest is a solid, budget-friendly option for keyword research, site audits, and competitive analysis. It has a free version, but its paid plans are competitively priced starting at $29 per month or a one-time payment of $290. Shore Up on LinkedIn LinkedIn, the haven for B2B marketing, is a social media platform you shouldn’t overlook. It’s a formidable space for networking, sharing insights, and flaunting your MSP services to a professional audience. Basic usage is free, but if you fancy more features, premium plans are available at a cost. Email Marketing Despite being a veteran in the digital marketing arena, email marketing still holds its ground as a cost-effective channel. Platforms like Active Campaign, Mailerlite, Mailchimp, ConvertKit, and Aweber are notable mentions. Their pricing starts at $10 to $20 monthly. Incorporating these tools can serve as a catalyst in refining your marketing operations, understanding your audience better, and fostering a stronger connection with them without burning a hole in your pocket.

Diversity matters to me, but there isn’t a lot of it on our team. Is that going to hurt us with customers?

By The ChannelPro Network in Collaboration with channelWise • February 12, 2024
Today’s customers want to see themselves reflected in the companies they support. Research has shown that a lack of diversity within teams is detrimental to business development and customer relationships, especially when your customer base is diverse.  The primary reason that diverse teams are critical to the success of client engagement is due to the unique experiences and intersectionality of the varied perspectives each team member brings to the table. This opens the door to more creativity and improved problem solving that your customers expect from you, which leads to greater customer satisfaction. Your ability to connect with customers thrives on your capacity to deliver fresh perspectives and how well you anticipate and respond to their needs. The more your team is representative of the markets they serve, the more valuable their insights become – and you can create better solutions for your client. Lack of Diversity Stifles Progress Consider the backlash experienced by big brands that create racially or culturally insensitive ads or products. Chances are no one with a varied perspective was present in strategy meetings to challenge the status quo. Perhaps you have personally experienced a client interaction where you or a peer unwittingly disregarded the position and authority of the primary decision maker based on their race, age, gender, or other misguided assumptions due to a lack of cultural competence. It happens all the time but it doesn’t have to. Diversity is less about how a person looks or where they come from; it’s more about valuing different points of view and being open to exploring new ways of thinking. It’s about integrating diversity of thought, which comes from the unique backgrounds and experiences of diverse individuals. By contrast, homogeneous teams are composed of individuals with similar backgrounds, perspectives, and experiences, which often subjects them to groupthink, blinds them to new opportunities, and hinders exploration of unconventional approaches. Thus, you’ve inadvertently stifled the very progress you aim to achieve. Create Your DEI Strategy As you plan your next client interaction or strategy meeting, ask yourself these questions: How well do we understand the unique needs, preferences, and challenges of diverse customer segments and/or buyers? Which team members’ perspectives are missing? Why are they not in the room? How can we adjust our thinking to better connect with our clients and their needs? The responses to these questions position you to address the gaps, better relate to your customers and their unique challenges, and help them innovate. A diverse team is better equipped to do just that.

We are too small for an operations manager. How do we streamline inefficient workflows with limited time?

By The ChannelPro Network in Collaboration with channelWise • February 12, 2024
I see this problem all the time: You’re overworked, can’t keep up with tickets, the phone is ringing, and there is no time for anything other than fighting to keep your head above water. However, if you don’t change anything, you will never break free. Even hiring an office manager won’t help because if you haven’t taken the steps to create a business machine, they’ll end up increasing your workload rather than reducing it. So, how do you create a machine? Here are some recommendations. Focus Your Operations Start by streamlining workflows through repeatable processes, then document them as you work. The most common source of inefficiency is solving many problems for many kinds of customers. You will be spread very thin and will never catch up if you work with accountants who have issues with Thomson Reuters, QuickBooks, and Liscio; doctors who struggle with Epic; and architects who need to make Papercut and AutoCAD work. The key to mechanization is focus. Get spectacular at solving a few critical problems for very specific markets. Focus cuts work out of your process and reduces work throughout the business. Make Time to Document A lack of time is a problem for many businesses, but you don’t have time to not document. Undocumented processes take two to three times longer to complete – sometimes much more – because you figure it out each time. A lack of documentation is why hiring an office manager won’t help. One of my clients passionately resisted documentation. They were drowning in tickets, unsatisfied customers, and unfinished projects. They also suffered from a lack of sleep. Documenting the first process was hard, but now, they have 5,000 processes documented. Trailing tickets were reduced by 93%, revenue tripled, they hired a team that delivers impressive results, and they take vacations without their phones. Use Automation Tools The third piece is automation. But you cannot automate a process you haven’t defined. That creates a mess and endless work. Once you have something defined, automate it. PSAs and RMMs have self-healing scripts and scripts for common problems that can save oodles of time. Ensure you set proper thresholds so you can detect issues before they escalate. This takes out randomness. Automate ticket assignments and responses, and create canned answers for the top 50 things your techs respond to. Plus, with open APIs, compatible tools, and tools like Zapier, you can automate an almost endless list of routine office tasks: Proposal creation and delivery Follow-up processes QBR (SBR) scheduling Sending birthday cards  By incorporating these strategies, even time-strapped small companies can reduce burdensome workloads.

When should I upgrade my website?

By The ChannelPro Network in Collaboration with channelWise • February 12, 2024
When you’re trying to determine if it’s time to upgrade your company’s website, it’s important to first understand if your website works for you. Is it driving leads? More importantly, are those leads turning into clients? If so, then you are probably good. But if you’re like most of the 400-plus MSPs’ websites I reviewed over the last two years, then you probably are not getting the results you should be getting. But before you go near a keyboard or mouse – or worse, hire someone to redo your site – the fundamental questions around proposition, direction, and target market need to be answered. Making the decision to rebuild a site is so much more than a design exercise. It’s an exercise in figuring out what your business is all about and where it’s headed. Think of your site as a storefront window. It’s where potential clients first encounter your brand, learn about your services, and, most importantly, decide whether they want to engage with your business. An outdated or ineffective website can have a significant impact on your ability to start those new conversations. So, when do you know it’s time for a new website? Here are some overall thoughts: Outdated Design  The visual appeal of your site plays a crucial role in attracting and retaining visitors. An outdated design can turn potential clients away. You only have one chance to make a first impression. If your site looks like it hasn’t seen an update in years, it’s probably time for a refresh. I’ve seen too many sites that look like they were designed when we were still sending faxes or are a barely customized template. It’s almost 2024. Don’t let that be yours. Ineffective Content, No SEO Your site’s content should be informative, engaging, and relevant to your target audience. It should be personal, too. It should tell stories about your business and how you’ve helped your clients. In addition, is your site getting traffic for local geographic search terms? Are you missing out on organic visitors? If SEO is non-existent. It’s time for a refresh. Low Conversion Rates If you’re getting visitors, but those contact forms are not coming through, then your calls to action aren’t doing their job. Make them clear and always sell your credibility on relevant landing pages. Talk to me if you’re not sure how to make that happen. Domain or Business Name You are what you are online. If your business can’t be found easily, change it. It’s that simple. Be unique. Be found. If you’ve noticed any of the signs flagged above, it likely is time to consider investing in a refresh.

Our Lead Engineer Says He’s Burned Out. Is There Anything I Can Do to Make Things Better?

By The ChannelPro Network in Collaboration with channelWise • February 12, 2024
As a leadership and coaching expert, my primary focus is on supporting individuals who experience burnout. Burnout is especially common in high-stress roles like engineering. However, there are several steps I recommend to make things better for your lead engineer . Foster Open Communication  It’s crucial to create a safe, nonjudgmental space where your lead engineer feels comfortable discussing their burnout and its underlying causes. By actively listening and showing empathy, you can help them feel heard and understood. Manage Expectations It’s important to review their workload and expectations. Burnout often stems from an overwhelming amount of work. Take the time to assess their responsibilities and workload, and identify areas where improvements can be made. This might involve redistributing tasks, delegating when possible, or even considering hiring additional resources to lighten the load. Work/Life Balance Encouraging work/life balance is another vital aspect. Help your lead engineer establish healthy boundaries by promoting regular breaks, time off, and the ability to disconnect from work during non-working hours. Demonstrating the importance of personal time and well-being through your own actions is key. Tools and Support Providing resources and support also is crucial. Ensure your lead engineer has the necessary tools and resources to perform their job effectively. Consider offering additional training, mentoring, or coaching to enhance their skills and boost their confidence. Employee assistance programs, counseling services, or wellness initiatives can also provide valuable support. The Culture Criteria Cultivating a positive work culture is essential in preventing burnout. Encourage collaboration, recognition, and appreciation among team members. Celebrate successes, share achievements, and foster an environment where everyone supports one another. Recognizing your lead engineer’s contributions and offering regular constructive feedback will contribute to a positive work environment. Empowerment Through Autonomy Promoting autonomy and flexibility can help combat burnout. Grant your lead engineer more control over their work whenever possible. Empowering them with decision-making authority and exploring flexible work arrangements, such as remote work or flexible hours, can improve their well-being and job satisfaction. Check In Often Regularly monitoring goals and revisiting them is crucial. Check in with your lead engineer frequently to assess their progress and adjust goals as needed. Collaboratively setting realistic and achievable targets, considering their workload and well-being, will help reduce overwhelm and increase motivation. Truly Listen to Feedback Seek feedback and be open to iteration. Ask your lead engineer for their insights, challenges, and suggestions for improvement. Involve them in finding solutions and implementing changes. Continuously assessing the effectiveness of the strategies you’ve implemented and adapting as needed is key to addressing burnout successfully. By implementing these strategies and demonstrating genuine care and support, you can create a healthier work environment that fosters well-being, productivity, and job satisfaction for your lead engineer and the entire team.

How do I attract more customers to my MSP?

By The ChannelPro Network in Collaboration with channelWise • February 12, 2024
There are two reasons why MSPs fail to attract prospects: Potential prospects don’t know you exist. Those who do know don’t understand that you solve a problem they have. Spending time, money, or resources on Point 1 is a waste without Point 2, so start there. The problem is that most MSPs sell something nobody wants to buy: IT services. Potential prospects have IT issues but are unaware that they are IT issues, aren’t interested in IT, and/or don’t speak tech. They don’t know how your IT services solve their problems. This leads to confusion and not buying. Overcoming Confusion So, how do you get uninterested potential customers attracted to your offerings? Answering these three questions can help you: Who is your target market? This can be a vertical, but a vertical often is too broad. So, it more likely will be a sub-part of a vertical. What problem do you solve for your target market using technology? This is an objective your target market has and a reason they can’t achieve it. They have business problems, not IT problems. How will you talk about it in their language? Use prescriptive sales: Start with the problem in their language, then accentuate the pain of the problem, present a solution, discuss the transformation, and make an offer. Without clear, tested, and optimized answers to these questions, you shouldn’t spend any money on advertising. It doesn’t work. So, answer the questions first. The good news is the answers make connecting with prospects easier. Instead of talking to everybody about something no one cares about, you speak to a specific audience about a problem vital to them. Right Place, Right Time The next step is to find prospective customers by going to where they are: Attend conferences and shows. If you solve a problem for dentists, go to dentistry conferences, not MSP conferences. Use social media. Identify 100 attractive prospects on LinkedIn, and target them with customized outreach through social media, mail, email, phone calls, and office visits. Add to the list as you close clients or eliminate someone as a prospect. If you spend money on awareness, spend money here. Network. Identify your top 250 contacts, make them aware of your target market and the problems you solve for them. Since what you do is no longer confusing, they can make introductions. Create content: Write for publications, newsletters, blogs, and whatever else you can find that your target market reads. Evolve into Marketing If you’ve answered the first three questions above and followed the next steps, you will attract customers. Once you’ve perfected your sales process, you can consider marketing. There are no silver bullets; there isn’t one thing you can do that magically works. I’ve tried it all; this is the strategy that works.
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