$194,276. That’s the amount it could be costing you each year to skip out on or use cheap and ineffective BI tools.
Let’s break down that number and explain why you really can’t afford to be without a good business intelligence solution.
Potential Recurring Revenue - $48,000
One of the biggest benefits of using a great dashboard and reporting tool is the ability to identify just how profitable your contracts are. If you’ve ever heard of the Pareto principle, you may not be surprised to find out that 20 percent of your clients are responsible for 80 percent of your workload!
The toughest part is identifying those clients, but with a gauge set up to display Tickets Per End Point you’ll be able to quickly and easily identify unprofitable clients. In addition to identifying unprofitable contracts, you can use the information to create a report that will help convince them that they need to pay you more for your services.
Richard Trivedi, a BrightGauge customer and Owner of CadreNet, was able to increase his monthly recurring revenue (MRR) by over $4,000 a month by identifying these problem clients and then using the reports to raise their rates. He recently joined us on The BrightGauge Podcast and explained how easy it was for him to increase his MRR.
The Math: $4,000 multiplied by 12 months gives us a nice yearly increase in revenue of $48,000.
Wasted Time - $126,100
Just as a PSA and Continuum will pay for themselves by making your team more efficient, having a great dashboard and reporting setup could allow you to save a few, or in some cases a significant amount, of hours per week. This is because you’ll cut down on the time spent on admin related tasks such as producing timesheets and income reports, checking and processing metrics, and running and verifying reports.
The Math: If we multiply 25 hours a week by the global average hourly rate for MSPs ($97) we get a total of $2,425 hours a week. Multiply that by 52 weeks and you’ve got $126,100 a year.
Billable Tickets/Hours Lost - $20,176
Most MSPs struggle with lost billable tickets and hours. The amount lost varies by MSP, but in this example, let’s assume an average of 10-15 percent of billable tickets and hours are lost every week.
Most managers and owners attempt to correct the issue by using incentives or even creating additional consequences for not entering all hours, but these methods don’t deliver the best results. A dashboard and reporting solution will ensure that you lose as little hours and tickets as possible, helping to minimize revenue loss.
The Math: 10 percent of a technician's time would equate to 4 hours a week. Multiply that by the average hourly rate ($97) and you get $388 dollars a week. Multiply this by 52 weeks and you’ve got a total of $20,176 a year. And that’s just for one employee. Larger MSPs could see a much higher number here!
How to Use Dashboards to Increase Your Revenue
$194,276 or more could be slipping through your fingers, but you can get it back. Here’s how to use a dashboard and reporting solution to recapture those hard earned dollars.
Start by tracking the right metrics. You’ll want to create a dashboard that displays all the following metrics:
- Open Tickets by Age - to ensure nothing is slipping through
- Average Time Spent per Ticket
- Average Time Spent per Ticket by Technician
- Top Tickets Per End Point by Client
- Profit by Client or Device
- Time Spent per Month by Client and Device
- Hours by Technician
Once you’ve set up a dashboard showing this information you’ll be able to use the data to identify where you need to raise rates, what is taking up your and your technician’s time, and how many tickets/hours are being lost. Armed with that information it will be easy to make decisions that will increase your MSPs profitability, and since you’ve got the data to back the decisions up, you’ll encounter less resistance from clients and employees.