Reseller guide: 5 top tips to increase your monthly recurring revenue

Tuesday, August 14, 2018

The Software as a Service (SaaS) market has grown massively since the late 90s when it began as an alternative way of selling, deploying and scaling software. Back then, a small number of companies such as Salesforce and NetSuite stole the early adopter market, today the market is both competitive and broad. As an example, the Giacom Cloud Market offers a growing portfolio of software; from email to CRM, Backup and VoIP to Security, with many software solutions to choose from.

The rapid adoption of SaaS – including Microsoft Azure – is in large part down to the number of advantages it offers compared to traditional hosted software licensing – including more flexible configurations, faster deployments and predictable costs that scale up and down with usage. As a Giacom reseller, you benefit from our industry leading portal,, and the benefits of SaaS propositions – but how can you truly leverage the breadth of opportunity? And how can you increase the monthly recurring revenue (MRR) you enjoy from your customers? So here’s our five top tips to boost your MRR as a Cloud Services Reseller.

Test different go-to-market prices

The free trial is now the norm in SaaS sales. While Giacom’s software offering brings well-known brands to the party, lowering the risk of testing out new products, many buyers still like to try before they buy. Unless offering a full trial version will prevent future conversions, give your prospects a full, free and unlimited trial of software. When looking at new customer acquisition and existing customer retention, test pricing strategies – a 10% or 20% increase in pricing may be achievable for some, for others an increase barely above inflation will be the limit. If you’re under-priced, you’ll see a marginal increase in customer churn, but a sizable increase in MRR.

Test add-ons as chargeable services

If you’re currently offering a number of features or products in one package, try separating them into different add-ons as chargeable services. Most of your customers won’t use all of the functionality you offer them, so as long as the principle benefits remain, it can be worthwhile removing some options and making them extra cost features.

Whilst on the subject of ‘unbundling’, it may be worth looking at the use of ‘unlimited’ options in your offering. The price of your software should normally increase alongside the value it generates, so try not to leave money on the table unless you need to do so to close the deal.

Add true value

The beauty of SaaS is the flexibility of contracts and the ability to turn on or off as needed. But this also means that to enjoy longer term commitment from your customers, your expertise and value requires more than just selling and providing support, otherwise you’ll find yourself being outmanoeuvred by competitors quickly. Position yourself as your customer’s trusted partner rather than supplier to keep the monthly revenue coming in. Not only this, but upselling is only truly effective if you’re close to your customers – you need to connect with them at the right time in their own journeys – without a knowledge of their business, you’ll struggle to time any further upsell activity.

Tech savvy IT users are a tough nut to crack when it comes to persuading them to buy, upgrade or scale up. Case studies are key and the most compelling use cases will come from users who have a lot in common with them, so make sure there’s a common theme in terms of demographic, occupation or industry. Make sure to ask your Account Manager for some Azure SMB use cases, for example, as it will only help propel your pitch to end customers.

Talk numbers to sell more

Most small business owners will think in numbers, metrics and statistics, so one of the best marketing strategies is to use data points to evidence the value you are offering with your software. For every software solution on the Cloud Market, work out how this will save your customer money, help them make more money, improve their business operations or processes or protect them from risk – and evidence this in £s or hours.

Focus on customer value

Many of our resellers devote huge amounts of energy into getting new customers to sign up, getting them on a recurring payment cycle and then getting some more new customers. But never forget your existing customers – they are the true source of revenue. In some of our cloud reseller partner businesses, only 10% of revenue comes from an initial sale and the bulk of revenue comes from renewals and upsells. It’s naturally very difficult to renew lost revenue from churn by adding more, so give some love to your current customers – consider free upgrades, maybe some onsite training or focus on improving your customer care SLAs.


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