It’s intuitive, really. The service desk is where much of an MSP’s resources are used, in particular the human resources. It’s the main, everyday point of contact for your customers. So it only stands to reason that the service desk is a critical contributor to profit at an MSP.
We talk about time waste a lot, but it’s not just that. In the first of our four-part series on the service desk, we explore quite a few different ways that your service desk contributes to your bottom line.
The service desk is one of the biggest sources of cost for your MSP. You pay your techs good money, and that represents the cost of goods sold for the business. So maximizing the output of your techs is one important way for the service desk to drive profit. We’re biased, but we think that there’s a lot of savings to be had with effective documentation, as this will allow you to reduce the amount of time your techs are spending looking for information. The less time they spend looking for information, the more time they spend solving your customers’ problems.
What happens when customers’ problems are being solved quickly and efficiently? Well, for one thing, your customers are happy. When you’re on a monthly recurring revenue (MRR) model, ensuring that your customers are happy is an important element in reducing customer churn. Remember that churn is evil. It costs you money to find new customers, and the more old customers you lose the more new ones you have to find. It’s a double whammy on your profit when you lose a customer. But happy customers are a lot less likely to leave.
Furthermore, think about the sales funnel. The sales funnel does not end with “customer”; it ends with “evangelist.” In simple terms, an evangelist is a customer so happy with your service that they tell others about you. Evangelists lower the cost of new customer acquisition, and they often find new customers for you that you would not have otherwise found. A customer is a net gain; an evangelist can be an exponential gain.
Name your price
When your desk is optimized, it has lower costs and delivers superior service. Superior service allows you to charge premium prices. People are willing to pay when you can deliver on quality. Premium prices combined with lower costs gives you dramatically higher margins. Superior service equals higher levels of customer satisfaction, which means lower churn and more word-of-mouth marketing. All of these things represent an improvement to your bottom line, one way or another. Put together, it’s the difference between an MSP that is struggling to get by each month and one that hums along like a well-oiled machine, turning regular profits and impressing customers at the same time.
And it all starts with the service desk. A desk optimized because your techs aren’t wasting time looking for information; they know exactly where to find it, every time, because it’s in IT Glue.
To learn more about how IT Glue can optimize your MSP service desk, sign up for a free demo.
IT Glue is a software platform that allows for efficient storage and retrieval of all the documentation you need to help your MSP run better. By integrating PSA and RMM data, we can help increase your efficiency upwards of 20%, and reduce onboarding times by even more. By eliminating wasted time from your business, IT Glue gives you more time to focus on what matters – growing your business.