Today, many MSPs have already started investing in professional services automation (PSA) platforms and CRM tools. These tools essentially drive the growth of MSPs. Labor costs are a challenge in any service business. PSA tools help automate and bring together key tasks, such as tracking time and handling tickets. The right marketing automation platforms have smooth integrations with the best and common CRM systems. Marketing automation tools and CRM tools together bring a holistic capability to the table - marketing tools handle the top of the funnel, while CRM tools take over when there is a greater need for individual sales action and involvement. The two together gives MSPs the right mixes of marketing and sales systems.

Compared to traditional MSP models, strategic technology partners can preserve their continuing contracts and recurrent revenue, but they need to be more hands-on in the way they tackle it. This can be accomplished by engaging more proactively with clients throughout the project lifecycle, than just focus too much on preventing tickets or handling them as and when they come up. This means that MSPs should use business tools that go beyond just tickets – the bigger winners in the MSP space will be the players who utilize a great CRM to manage new and existing client accounts proactively, and build strong project management foundation that ties with their recurring billing model.

In most CRM systems, pipeline management is defined as the process of supervising and directing future sales in different phases or stages. Pipeline management helps CRM managers answer several important questions. Firstly, it empowers them to precisely predict forthcoming revenues. Secondly, it supports them in analyzing the sales process and recognizes fragile spots. Thirdly, it can notify sales managers about an imminent sales slump or sales growth. It also shows aggregate sales velocity - the average time taken to turn incoming leads into paying customers. Terms such as pipeline, sales pipeline, opportunity pipeline and deals pipeline are all interrelated.

Advanced CRM software allows MSPs to manage multiple pipelines. This is very significant to the success of the MSP business, because most CRM tools seldom offer this option. For instance, for a car dealership business that makes money by selling cars, spare parts and providing repairs, common CRM tools allow  the configuration of only one pipeline (say new car sales or repairs). This means that the business would be unable to accurately track and analyze multiple lines of business and profit. It is important for MSPs to keep these in mind when choosing a CRM tool for pipeline management

Pipeline management is particularly important to keep a sales pipeline healthy; it becomes all the more important whenever new leads are added to the pipeline.

Managing a single lead in every step of the sales pipeline is rather straightforward. The MSP is aware of the goals and requirements, and they only have to keep track of where that single lead is within the pipeline.

Adding second, third and many more leads to the pipeline makes the process more complicated as the MSP has track of each and every individual – it is not just about tracking where they are in the pipeline, but also understanding their needs, and taking the necessary steps to take ahead in the pipeline. When an MSP has a hundred or more people in their sales pipeline, management becomes even harder.

This is where MSP CRM steps in – the CRM not only helps record customer or sales information, but also helps sales teams take necessary action. Managing multiple leads can sometimes become a process as delicate as juggling eggs. In such cases, it is only wise for MSPs to put to use the right CRM for effective pipeline management.