A question we are often asked is, “When selling IT on a bundled rental or As-A-Service structure, how can we increase our closing percentages?”
We all know that contracted monthly recurring revenue (MRR) is important to the health of your business. We also know selling a project on a monthly payment that includes hardware, installation, and a multi-year managed services agreement makes things easier for your customer because they manage and pay one invoice from one entity each month. Ultimately, this approach benefits all involved, so selling your technology in this way seems like an easy decision. However, many IT customers are still in the habit of paying cash for their technology upfront, so a different sales strategy with a focus on education and storytelling is needed to change their way of thinking.
5 strategies to increase closing percentages on As-A-Service business
There are many ways to drastically increase closing percentages for your inclusive recurring sale. Today, we are going to focus on five strategies that will help you close more As-A-Service business.
1. Hire salespeople who can tell a story through your products and services
People remember and gravitate toward story tellers. Finding a salesperson who can tell a story using your programs and products will increase customer interaction and acceptance. Selling an IT bundle is different than most sales. It is a large investment. Having salespeople that can help tell the story of why it’s so important for a business to invest in a strong IT infrastructure is key. Help your customers and prospects understand the risk of not investing in proper infrastructure. Be it heightened security risk or a hinderance to productivity, there are many reasons why people are prioritizing IT spend in their budgets and it’s because the benefits of implementing a standardized stack outweigh any immediate cost savings of carrying on with aging technology. Effectively telling this story helps them understand that. Additionally, showing them how they can acquire the necessary technology through a manageable monthly payment can help meet any cost objections they may have.
Related: Pitfalls of Running Old Technology
2. Make education around As-A-Service programs “business as usual”
It’s crucial your internal employees are not only aware of the As-A-Service programs you can offer, but they need constant and consistent communication and training around how to sell your solutions on an As-A-Service arrangement. Selling your solutions in this way should be the rule, not the exception. This requires clarity around the benefits of these kinds of programs and helping them understand how they communicate those benefits to your customers. They should know exactly why selling technology in this way helps your company achieve its long-term goals.
Customers on a bundled rental typically appreciate and buy a standard tech stack because they understand the value of updated technology. This benefits you because your help desk can have a standardized approach to support, and you’ll enjoy a predictable and efficient refresh cycle. Additionally, because of the smooth process this approach creates, you end up with happier customers who are far more likely to send you referrals or contribute to positive testimonials you can use to win more prospects.
Don’t forget, your customers will also require education on these programs to understand how they will benefit them. Market these programs visibly via brochures, ads, website content, and more. Address common questions, myths and benefits of As-A-Service programs via blogs, webinars, or podcasts so your customers can begin to warm up to the idea of the monthly payment.
Related: As-A-Service Financing Trends
3. Compensate for behaviors that drive more As-A-Service business
You will go through several iterations of compensation plans over the years as your IT strategy matures. The key thing to keep in mind as you evolve is to continue to compensate for behaviors you want to see. If your long-term strategy involves a heavy focus on monthly recurring revenue, then at the end of the day, your salespeople need to be compensated far more when they close bundled, As-A-Service business.
4. Adjust your sales process
Selling more recurring contracts does require a better assessment process. It requires some discovery so you can become educated in the specific gaps your customer or prospect may have in their current infrastructure, be it security or productivity gaps. If you can develop and practice this discovery process, you’ll be able to show the prospect how your solution fills these gaps in a cost-effective way. For prospects to appreciate your all-inclusive payment, you need to focus on business-based questions like the ones outlined below:
- What other initiatives do you have currently that requires your cash, capital, or other investments? How would success in these initiatives help your business thrive?
- If you did not have to write a check for this acquisition, what would you use the money for and why?
- Can you help me understand your long-term growth goals for the business and what it will take to be successful?
- How competitive is your market and what does it take to differentiate yourself?
The right questions will help you position an As-A-Service program and educate your customers and prospects on how your monthly, all-inclusive payment can actually help them reach their goals instead of simply being another payment option.
As an example, let’s say your customer told you that they have 3 other initiatives that they are utilizing their cash to fund. If the customer carries out these initiatives, they expect to grow their net new business by 40%. They are hiring a marketing firm, hiring a content marketer, and acquiring a small competitor.
Your response could explain how a bundled program will help them retain more cash which can be put toward all of these important initiatives or even free up more cash to keep on reserve. Your monthly payment program will allow your customer to acquire all the bells and whistles they need while continuing to fund their growth projects.
5. Adjust how you present your solution
I mentioned telling a story in the first section. If you don’t tell the story of why your As-A-Service program will help overcome or avoid business hurdles, your prospects will struggle to understand the value. This advice can be applied throughout the whole sales process, from discovery to proposal. Use proposals and presentations to strategically tell the story of how your inclusive As-A-Service program will help your prospect’s business grow by filling known gaps or helping them seize untapped opportunity. Show them that acquiring technology on an As-A-Service model is not just an alternative option, it’s a strategic business decision. Your program can help your customers do so much more within their business because it allows them to pay for the technology they need as they use it, make upgrades easy and cost effective, and prevent obsolescence that can hinder productivity and increase security risk. Tell this story, then, at the end of your proposal, present a bundled monthly payment as the default rather than one of many payment options. This allows you to establish upfront with your customer that a monthly payment option is the best way for customers to acquire technology today.
Related: 8 Reasons to Offer a Monthly Payment Option
Start offering As-A-Service programs
If you have any questions or concerns about the keys to success listed above, please reach out to us to learn more. GreatAmerica can help you build an As-A-Service offering that will create a seamless customer experience and set you and your customers up for success.
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