The story of Adam Spencer, CEO and founder of 911 IT, stands as a testament to the transformative power of targeted marketing and strategic growth. Just three and a half years ago, Adam faced the daunting challenge of high debt and meager annual revenues. Today, his company boasts a staggering $4 million turnover, a testament to his client acquisition strategies and marketing acumen.
The Turnaround: Embracing Monthly Recurring Revenue
Adam’s journey began with a critical shift in business model—from a traditional break-fix approach to a focus on monthly recurring revenue (MRR). The pivot wasn’t easy. Initially, clients were hesitant to embrace the new model. But persistence paid off. By the end of 2022, 911 IT had not only added 37 new MSP clients but had also locked each into three-year contracts. This shift was a game-changer, leading to a remarkable 76% increase in profits and a closing rate of 67%.
The Power Of Data-Driven Marketing
Adam credits much of his success to a rigorous, data-driven approach to marketing. He meticulously tracked the cost of acquiring a customer, finding it to be $4,532—a figure that helped refine his marketing strategies. This data-driven approach extended to list building, where his team engaged in meticulous research and verification, ensuring each contact was a potential high-probability prospect.
Strategies That Made The Difference
- Targeted Aspirin Letters And Follow-Up Calls: Adam’s team sent out 250 aspirin letters weekly, followed by approximately 500 phone calls. This consistent outreach was key to keeping the company in prospects’ minds.
- Comprehensive Contact Plan: Each of the 6,500 contacts on their list received four direct mail marketing campaigns annually, monthly newsletters, weekly tech tips and were targeted through retargeting ads on platforms like Facebook and LinkedIn.
- Utilizing Digital Marketing: Although initially unsuccessful with external digital marketing agencies, switching to a more effective partner led to immediate results, with three significant leads in just three weeks.
- Content Marketing And Community Building: 911 IT invested in SEO, blog posts, a self-published magazine and a unique ‘Ransomware Survival Kit’ for canvassing local businesses, establishing the company as a thought leader and a trusted community member.
- Sales Team Development: Building a robust sales team with a systematic approach to client acquisition and onboarding further propelled their growth.
Building A High-Quality Prospect List
Adam Spencer’s strategy for building a high-quality prospect list is a meticulous and multi-faceted process, crucial for the dramatic turnaround of his MSP business. This process is not just about gathering names; it’s about building a repository of potential clients who are most likely to need and respond to the services offered by 911 IT.
- Initial Data Gathering: The journey starts with collecting raw data, which forms the backbone of the prospect list. This data comes from various sources, including Data Axle and library census records. Adam’s team also leverages insights gained from website visits, understanding that every digital footprint could lead to a potential high-value client.
- Data Scrubbing: Once the raw data is in hand, the next critical step is data scrubbing. This involves cleaning and verifying the data outside the CRM system. The focus here is on ensuring that each contact is relevant to the business’s target market. It’s about quality over quantity. Scrubbing helps in filtering out irrelevant contacts and sharpening the focus on prospects who are more likely to convert into clients.
- Effective Outreach: With a cleaned and refined list, the team initiates outreach. This involves targeted calls to each prospect to verify and gather additional information. This step is crucial because it updates the database with the most current and useful data, ensuring that the marketing efforts are as targeted and efficient as possible.
- Continuous Improvement: The prospect list is not static. It requires regular reassessment and refinement. This means revisiting the list periodically to ensure it aligns with the company’s evolving target market and business goals. Market trends change, and so do the needs and profiles of potential clients. Keeping the list updated is key to maintaining its relevance and effectiveness.
Additional Tactics:
- Segmentation: Segmenting the list based on various criteria like industry, company size, and specific IT needs allows for more personalized and effective marketing campaigns.
- Tracking Responses: Monitoring the responses from various outreach efforts helps in further refining the list. This includes tracking metrics like open rates for e-mails, responses to calls, and engagement with digital ads.
- Utilizing Technology: Employing advanced CRM tools for better management of the prospect list, ensuring seamless integration of new data, and automating parts of the outreach process.
- Networking and Referrals: Leveraging existing relationships and networks to expand the prospect list. Satisfied clients can be a valuable source of referrals, leading to new high-probability prospects.
Lessons For MSP Business Owners
Adam’s story is more than a tale of financial success; it’s a roadmap for MSPs looking to transform their business. His strategies highlight the importance of:
- Embracing change and being open to new business models.
- The critical role of data and targeted marketing in customer acquisition.
- Building and maintaining a high-quality prospect list.
- Continuously refining marketing and sales strategies based on performance data.
The journey of 911 IT under Adam Spencer’s leadership offers valuable lessons for MSP business owners. By focusing on monthly recurring revenue, leveraging data-driven marketing strategies, and continuously refining their approach, MSPs can achieve sustainable growth and success in this competitive industry.
