6 steps to increase profits when selling Wi-Fi services
Are you a MSP and aim at increasing your business margins while selling your Wi-Fi services? Follow the 6 steps below, which show the right strategies to offer performing Wi-Fi services to existing and new customers in an effective way.
1. Set the right pricing strategy
There are a variety of factors you should consider in order to strategically price your managed services. Firstly, have a look at the market pricing, so as to know how you are positioning your services on the market compared to your competitors. You can then decide to base your pricing strategy either on costs or value. Should you opt for a cost based pricing, you can decide whether to charge per device, per number of connected users or per location: in the first case, you charge each device at a different price every month, meaning it is easy for you to make quotations and change them every time clients add additional devices. You can also set annual tariffs, so as to lower the costs you have to bear and enhance your cash flow. In the second case, you charge each user at an established fee every month, which allows you offering high quality services to your clients and get high retention rates in return. If you decide to charge per location, we suggest setting an initial price per location and grow it month after month with an additional quota, should the number of connected users be higher than the one initially established. Alternatively, you can base your pricing strategy on value, that is to say what clients will pay you for your service instead of based on your cost: in this case, it is important to understand your clients’ needs, so as to deliver the right service and get high customer satisfaction levels in return. Value based pricing is the model which allows your business to grow faster, as you can quickly charge higher prices based on the added value you offer within your service.
If you want to know more about how to set the right pricing strategy for your Wi-Fi project, read this article.
2. Define your added value services
Value based pricing depends on the value you add to your offering. Accordingly, it is important to pinpoint your added value, meaning what distinguishes what you are delivering to your market segment compared to your competitors. Therefore, analyze your main competitors and identify what makes your services unique or find new ways to reinvent your business: for instance, you can offer technical support to your clients, provide site surveys and site visits; you can offer innovative monitoring and troubleshooting tools, as well as database management features; you can focus on the configuration of devices and updates maintenance; also, you can offer additional services, for instance, related to Wi-Fi marketing, so as to allow your clients to analyze and segment user information collected through Wi-Fi. The all-in-one Tanaza software for Wi-Fi cloud management can help you identifying and offering the right features at affordable prices, so that both you and your small and medium-sized clients to be better off.
3. Expand your services to your existing clients
Once you have successfully delivered your services to your targeted clients, you should find smart ways to keep your business growing. In doing so, upselling and cross-selling are two beneficial strategies in order to retain your current customers while, at the same time, increasing revenues. For instance, you can create bundled packages of services, whose prices increase according to the high-quality or number of offered services; you can firstly create a package including basic features, i.e. the AP configuration, the login page with email and/or phone number as authentication method and the management dashboard, at an entry-level price. Then, you can develop a higher priced package, which include the social login among the login methods available on the login page and other benefits i.e. premium support and analytics tools. Tanaza provides you with an easy-to-setup and user-friendly social dashboard, which makes the analysis of the data collected through Wi-Fi very easy.
4. Lower your costs
In order to reduce your expenditures, you can consider lowering your costs in strategic ways. For instance, you can decrease the cost of your Tanaza licences by switching from monthly to annual subscription fees: in this way, it is necessary to make only one payment for the entire year; also, you do not need to work on manual monthly possible subscription renewals; furthermore, you do not run the risk of clients’ withdrawals from your services after a few months, as they’re bound to your services for one entire year. In addition, another way to reduce costs is to purchase a large quantity of access points from a distributor all at once: in doing so, you will spend less money instead of individually buy them.
5. Look for new clients
Now that you have successfully managed to retain your existing clients, you should focus on attracting new ideal customers. In this challenging phase, it is important to be able to target only those segments, which can actually provide your business with real high profit margins. The key to effectively identify your ideal customer – also called “buyer persona” – is to think about the profile of your ideal company based on market research and the data already collected from existing customers. For instance, identify its size, average revenue, characteristics, geographical market, needs. After that, target it properly, by introducing and delivering your services in a clear and tailored way.
6. Minimize waste
A last relevant element to consider when you want to generate higher margins in less time while maximizing value for your customers, is the ability to identify and cut every waste possible in your Wi-Fi project. Indeed, you could find yourself stuck up with your project development due to time inefficiencies or budget miscalculations. Accordingly, you should carefully analyze and understand all your project processes and activities, in order to pinpoint waste steps that do not add values to your Wi-Fi project stream and solve them. For instance, do not deliver more services than those your customers are asking for: in this way, you will save at the same time a valuable amount of time and money.
You can rely on the Tanaza business model in order to boost your business revenues, by providing your current and potential customers with a wide range of profitable and useful Wi-Fi services, while reducing costs.