White Paper | July 3, 2012

The Managed Services Sales Imperative

Source: Continuum Managed Services, LLC

If cash is the lifeblood of every business, sales is the heart that keeps pumping cash through the system. The importance of sales cannot be overstated: A business is empty if no one consumes its products and services, and it takes sales organizations and people to bring products to market. It’s that simple.

In managed services, a strong sales philosophy and organization aren’t just important – they’re imperative. Here’s why:

  • Compared to product-based businesses, managed services are even more dependent on cash flow for their profitability and, ultimately, long-term viability
  • Without the continual influx of new accounts and recurring service fees, managed services businesses will become increasingly less profitable and less competitive

Success in managed services isn’t just the creation of recurring revenue through service payments, but the continual addition of new accounts and the utilization of service capacity that ultimately makes the investment worthwhile. Failure to concentrate on sales doesn’t result in steady state – it results in stagnation that gives way to the erosion of competitiveness on the road to irrelevancy.

 

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