Selling MPS to SMB The imaging industry has seen acceleration in its evolution over the past eighteen months, with the economic downturn acting as a catalyst for the industry’s continuing migration from a hardware-centric sales model to a more service-centric model, embodied in various types of Managed Print Services programs. Financial pressures on businesses have made the benefits of Managed Print Services appealing, and have created a unique opportunity for copier and print dealers able to develop MPS offerings that address the concerns of their end-user customers and prospects. Perhaps surprisingly, this unique opportunity does not seem to have been evident to all dealers, however. In particular, there are still many that have not been either willing or able to develop a successful program. For these dealers, meeting end-user expectations in the current economic environment, difficult in its own right, has been made even more difficult as customer expectations have begun to change. In light of this, the question that comes to mind is “what is it about these dealers, about managed print services in general, or about the current environment that these dealers work in that has made it so difficult for them to put together a successful program?” ...when selling to an SMB customer, wherein decisions may be left to a single individual or group within the company, at times the owner, dealers must not only able to explain the benefits of their MPS offering, but do so in a way that addresses the concerns not only of the customer but also of the individual making the decision... The question of what makes a successful MPS dealer, or in other words what a dealer must do to develop and deliver a successful MPS program, has been diagnosed and discussed extensively for the past eighteen months. In this plethora of information, there has been little agreement between the various publications, consultants, research groups, and vendors offering the advice and opinion. Without a doubt, MPS has become and remains the hottest topic of conversation at tradeshows and conferences focusing on the imaging industry, and yet a proper definition of MPS remains beyond the grasp of the industry. Further, despite the abundance of available information, many dealers still find it difficult to identify and then apply the necessary steps to build a successful program. There are two possible targets at which to point fingers in this situation: those providing the information, and those attempting to understand it. In other words, it is either the industry analysts’ fault for not identifying or properly defining the necessary steps, or it is the dealers’ inability to put those steps in practice that is causing the issue for so many dealers. So which is it? Unfortunately, there is no simple answer, and no single group to be held accountable. The issue is at once with the information being provided, and with the dealers using it improperly. As such, everyone must accept some of the accountability, and yet no one should take all the blame, either. The issue most commonly cited among industry analysts, researchers, and consultants as reasons that dealers are not successful at MPS implementation is a lack of true commitment to MPS from all levels of an organization, and in particular from senior management. Any lack of commitment from senior management, it is argued, will undermine the program just as soon as a more pressing issue, such as a month-end sales push, takes attention and commitment away from the MPS program. If the dealer repeats this every time a pressing issue arises, it is easy to see how a lack of commitment from upper management has the potential to completely derail an MPS program. Even in dealerships wherein a dedicated MPS advocate is present, which is another recommendation made by many consulting firms, a lack of buy-in from upper management can severely limit the MPS advocate’s effectiveness. That being said, it is generally recognized that a switch in business philosophy, from the hardware-centric approach still embraced by many traditionally minded copier dealerships to an MPS or service-centric approach is a considerable undertaking. Dealers can be excused, in the absence of proper information about the MPS business model, for not fully committing. As has been said many times before, however, it would behoove those that have not done some deep thinking about MPS to begin to do so, quickly. In short, MPS does require a great deal of commitment in order to be successful, but some apprehension on the part of the dealer’s senior management should be expected in the absence of proper information to support a change in philosophy. On the flip side, the real challenge for dealerships considering an MPS business model is the acquisition of the knowledge needed to implement the program effectively. Without a doubt, there is ample information and/or opinion available from within the industry relating to MPS. The last couple of years have brought a plethora of MPS experts into the market, all with varying opinions on what is most important to address in an MPS offering. The difficulty, therefore, is not so much in getting information about MPS, but rather in deciphering the data and deciding which information to trust and use in developing a dealership’s MPS strategy. It is useful for managers to consider this decision in the same context that they would consider any other strategy decision: by choosing the information/opinion/insights that focus more specifically on the target market that the dealer wishes to address. In the case of many dealerships offering MPS, that market can be defined as the “mid-market” or SMB. Therefore, the consultative insights that the dealership should seek should also be focused on MPS as it pertains to the SMB. This information is not always easy to identify on the surface, but asking for clarification from a consultant about what types of end-users they have in mind when sharing insights on MPS is a worthwhile endeavor. It not only will help a dealer to understand the context of the advice being given, but the clarity with which a consultant can address the question will also help to assess the quality of the advice being provided. Simply put, if the consultant stumbles when answering that basic question, the quality of the information they are able to give should also be questioned. Naturally, the benefit of selecting the right consultant or the right information to consider in building an MPS program targeted at the SMB market is that a dealership will have the opportunity to develop a program that will properly address the customer’s needs. Unfortunately, much of the information available about MPS lacks the type of detail a dealer needs to assess the effectiveness of their proposed program. This is not to say that the information available is not accurate or useful. The information is valid, but is often in need of contextualization to make it better suited to the small to mid-sized dealer. The reason for this is simple: much of the consultative analysis currently available in the marketplace is targeted to the OEMs, and analyzes OEM-type MPS programs that are targeted at enterprise accounts. There is some value in this information for dealers targeting SMBs with their MPS programs, but if dealerships are basing their MPS programs on OEM-type MPS offerings, they are, in most cases, missing the point. As is the case in all sales efforts, the most successful sellers of MPS programs will be those that are best able to identify the pain points of their customers, and then offer solutions to address those challenges. This concept is nothing new to successful imaging dealers, as they have been identifying and addressing hardware needs for years. Why is it, then, that this basic concept of selling is so often overlooked with MPS sales? For years now, the imaging industry has been looking for an all-encompassing definition for Managed Print Services. This definition, however, does not and cannot exist. Ever. The basic concept of Managed Print Services is to take the burden of managing a printer/imaging fleet away from the end-user, and to manage it more effectively than the end-user is able to. As such, what is involved in an MPS engagement is necessarily going to differ depending on the needs of the customer, and it is crucial that dealerships recognize and embrace that fact. To address the needs of SMBs with an MPS offering, dealerships will need to spend time learning not only about MPS, but also about their customers. This knowledge will not only allow the dealer to more successfully define the needs of their customers, but also to properly consider the abundance of information available concerning MPS, choosing the only consultant, training program, research, and advice that pertains to their situation. Taking this step will not only ensure that time, money, and energy are not wasted on dissecting the wrong information, but will also make MPS far easier to implement. It will make the dealer far more successful and profitable with MPS. There is work to be done before MPS can be launched, but the value added by that work makes it more than worthwhile. As stated above, SMBs are different than the enterprise accounts often focused on in industry MPS research by definition. SMB needs are also different, based on many of the characteristics that make SMBs unique. Understanding these unique characteristics, and as an extension how to properly address them, can be the difference between a successful MPS dealer and an unsuccessful one. A book could be written on the subject, so rather than attempt a superficial analysis here, we will address the one difference that likely has the most significant impact on how an MPS program should be designed for and sold to an SMB as opposed to an enterprise account. Fortunately, there is beginning to be some specific consideration of SMB-type MPS engagements as the MPS marketplace has matured. The topic is beginning to be covered by industry analysts in papers, at conferences, and in publications like this one. This is good news for the industry, and readers are encouraged to consider and take advantage of that information as it becomes available. The most obvious difference between SMBs and Enterprise accounts is their size. By definition, SMBs are smaller than enterprise accounts, and are often considered to be somewhere between 100 and 500 employees, which is in contrast to enterprise accounts that could have thousands of employees. This difference gives rise to many more noteworthy characteristics and nuances, from decision-making processes to desired business outcomes. In particular, it is critical for a dealer to know and understand the decision-making process within an SMB account in order to successfully sell into it. Unlike the enterprise, decision-making is not usually as regimented and systematic in SMB accounts. Reasons for this difference are many and may be attributed in some cases to the ownership structure of the company. No matter what this difference is attributed to, it is an important nuance that demands consideration. Simply put, when selling to an SMB customer, wherein decisions may be left to a single individual or group within the company, at times the owner, dealers must not only able to explain the benefits of their MPS offering, but do so in a way that addresses the concerns not only of the customer but also of the individual making the decision. As a relatively new concept, there is still limited understanding at the end-user level of what the benefits of MPS could be for their business. The customer will have biases that must be overcome in the selling process, and it will be the ability of the dealer to address those biases that will make or break the MPS engagement. As stated above, it will be important for the dealer to spend the time and energy to get to know the customer, and then customize their MPS offering. Much more information is available on this topic by searching the Internet for “Mental Models” and “biases”. For more detailed information, check industry publications, conferences, and tradeshows for “The Mental Models of MPS.” In summary, it is fact that SMB MPS customers differ from their enterprise counterparts. As such, the MPS offering targeted at this group must also differ, and may or may not incorporate all of the elements included in enterprise MPS engagements. Success in selling to SMBs will depend heavily on the dealer’s ability to properly identify the customer’s specific needs and fit an MPS solution to those needs, as opposed to attempting to make the customer fit the MPS program. With this in mind, it will be important for dealers to take into careful consideration the type of information or consulting advice they seek, as well as the flexibility of the MPS program they put together. Up until this point, it has been difficult to find information or programs specifically focused on the SMB. Fortunately, that is starting to change. As the MPS marketplace matures, more specific, targeted information and advice is becoming available. Finding the right information is no longer impossible, as long as dealers look in the right places. Scott MacKenzie is the Director of Marketing and Market Analysis for West Point Products. A recognized industry speaker and contributing editor to a number of trade publications, MacKenzie joined the West Point Products team in January, 2009 as Manager of Market Analysis, assuming the Director's position in November, 2009. In his role at West Point, MacKenzie is responsible for West Point Products' marketing initiatives as well as market research and analysis, working closely with the firm's senior management team. MacKenzie holds an honors degree in English and economics from the University of Toronto, and a post-graduate certificate in marketing management. He is a 2012 MBA candidate at the Rotman School of Management in Toronto, Canada. He can be reached via email smackenzie@westpointproducts.com.