The 5 KPI's you Need to be Tracking for Sales in your MSP

Let me guess, you heard that you need to be tracking KPIs in your business, but you're wondering what numbers are really important and how to get started. I get it. As a high performance sales coach and a chief revenue officer, I can understand the struggle and juggle wearing many hats and what it might feel like to track all the data that you need to in order to see success in your IT and MSP business. But let's go ahead and jump into it. All right, so the first KPI, the first metric, the first data point you need, right. Represents the first stage of your sales process. So let me explain that before I jump in. Now first of all, us over at seven figure MSP teach a very specific sales process. And so this is reflective of that sales process. And if you're not one of our clients, that's okay. You can modify this for your business. So I recommend that you track first time appointments. So it's important to know how many you work per day, per week, per month, per year. The reason why it's really important to be tracking at those different levels is that if you have a bad day or even a bad week, but month to date or year to date, you're tracking success, then you're able to move forward with confidence knowing that you're going to achieve your milestones. Okay, but also if you don't track every single day and then once a year you're going to go and look at your numbers, that's not going to help you. So it's really, really important you find a simple and easy way to do. So I recommend like in one of our past videos, just using a simple Google workbook or an Excel. So first time appointments. So what does that mean to track the KPI? It means two things. Okay, so one means you need to track the amount or percentage, depending what the the actual status that you're tracking. But it's also important that it continues along your sales process. So for example, first time appointments converted into paid cyber cybersecurity risk assessments, which is what we teach. So you want to have a benchmark for your business and converting to the next stage of your sales process. Now if you're not following our sales process, that's okay. I want you to document your sales process right now and make sure that you're tracking the number or the percentage and then making sure that you're always getting to the next step and you're not getting stuck in parts of your sales process. All right, so now you're tracking first time appointments and now let's talk about tracking your cybersecurity risk assessment. Sales. Sales. Okay. So like I mentioned earlier, in seven figure MSP we teach a paid cybersecurity risk assessment. And this is really, really critical to the success of your sales. And it doesn't matter if you yourself are doing them as the business owner or if you have a sales team, but it's part of your sales process. So are they. Converting from first time appointments into the risk assessments is your first thing you want to pay attention to. Now, when you present your risk assessment by your salesperson or the business owner, never attack a little added bonus right there. Okay, now we want to look at what the conversion rate is to closing them into a new client. Okay. And the reason why this is really important is that you want to make sure that you're not once again getting stuck at any stage of your sales process. How I would analyze this as a Chief Revenue Officer is that if I saw the speed going really quick from first time appointments to paid risk assessments, but then our close rate was plummeting, what I would do is go back with my sales team or myself if I'm doing the selling and understanding how I can position the risk differently and my offer differently to increase my close rate. So first time appointments paid, right? Cybersecurity, cyber security risk assessment, the close rate into becoming a new client. Now the next thing that is absolutely critical, that is part of your sales process is renewals. And I don't want to overlook this. Okay, so at seven figure msp, we really, really care about monthly recurring revenue. And I bet you do too. And in order to have that stack and stack and stack and grow, you need renewals. Okay? So setting a benchmark for yourself based on historical data of what your renewal percentage is and then always reaching to increase it. Okay, that was metric number four. And our last one is, are you doing add ons? Are you adding users, selling hardware, any of these other things that you're able to sell within the business? What does that look like? What percentage of clients do an add on? Now this is going to be different for every single business out there, but I want you to set a benchmark and a goal so that you can start to do more add ons to see more revenue in your business. All right, so that wraps up the five important KPIs that you need in your MSP or IT business so that you can grow, grow, grow and get better at sales.