Understanding Why MSPs Struggle with New Customer Acquisition

In this blog Pete Roythorne talks to head sales and marketing nerd Stefanie Hammond about how MSPs can tackle the challenges of new customer acquisition.

Finding new customers has long been a significant challenge for MSPs. In fact, according to the latest MSP Horizons report, almost a quarter of MSPs ranked new customer acquisition as their biggest hurdle. Stefanie Hammond, head sales and marketing nerd at N‑able, shared her perspective on why this issue is so prevalent in recent podcast interview I did with her. We dug into some of the reasons behind this persistent challenge and explored how MSPs can start to overcome it.

Catch the full conversation Unlocking MSP Sales Success here:

• Watch Unlocking MSP Sales Success
• Listen to Unlocking MSP Sales Success

The Tech Background Factor

One of the first issues Stefanie identified was the background of many MSP founders. Historically, MSPs were often started by individuals with a technical background rather than a business or sales focus. As Stefanie noted, “Techs know tech really, really well. They went to school for that, but they didn’t go to school for business, sales, marketing.”

This creates a fundamental gap in skills. While technical proficiency is vital to running an MSP, it doesn’t necessarily translate into being able to sell those services effectively. This results in MSPs that excel at delivering IT solutions but struggle with communicating their value to non-technical business owners. The result? Potential customers can remain unaware of the true value MSPs bring beyond just “fixing computers.”

Lack of Sales and Marketing Focus

Stefanie also highlighted the issue of multitasking, particularly in smaller MSPs where the owner typically wears many hats. These business owners often don’t have the time to focus consistently on sales and marketing efforts, which Stefanie likened to playing “whack-a-mole.” She explained, “They’ll do a little bit of marketing and they’ll be like, okay, I did some marketing. And then they go back down and focus on something else.”

The problem here is that marketing and sales efforts need consistency to be effective. Sporadic bursts of marketing aren’t enough to generate a steady flow of leads. Without a dedicated sales and marketing focus, MSPs miss opportunities and leave potential clients unaware of their services.

Selling Tools Instead of Solutions

Another significant obstacle to new customer acquisition comes from how MSPs approach their sales pitches. Many MSPs fall into the trap of selling the tools they use rather than the solutions they provide. “One of the other questions I get asked a lot is how do I price EDR? How do I price backup? How do I price [Insert tool here]?” explains Stefanie. The problem with this approach is that non-technical business owners aren’t interested in the tools MSPs use. What matters to them is the value MSPs provide in terms of improved business outcomes.

This disconnect between what MSPs are selling and what potential customers actually care about is a fundamental sales challenge. As Stefanie explained, “We’re selling to non-technical business owners. They don’t care about the tool that you’re using within your MSP. They care about how it’s going to benefit them.”

Overcoming the Challenge

So how can MSPs overcome these challenges and start winning new customers? The first step, according to Stefanie, is for MSPs to shift their mindset from being reactive to proactive when it comes to sales and marketing. Instead of approaching marketing like a game of whack-a-mole, MSPs need a consistent, focused sales strategy that is aligned with the business’s long-term growth goals.

“MSPs need someone dedicated to the growth function,” Stefanie said. This doesn’t necessarily mean hiring an expensive account executive right away, but it does mean having someone whose primary focus is on driving new business. Stefanie emphasized that MSPs should look for salespeople who can connect with their target market on a business level, rather than purely on a technical one.

Additionally, MSPs should focus on selling solutions rather than individual tools. As Stefanie pointed out, “They’re not able to connect with who they’re trying to connect with, which is non-technical business owners.” By presenting their services as solutions to specific business problems, MSPs can differentiate themselves from the competition and better communicate their value to potential clients.

Final Thoughts

Understanding why MSPs struggle with new customer acquisition is the first step toward overcoming this challenge. Stefanie Hammond’s insights shine a light on the common pitfalls many MSPs fall into—technical founders with limited sales experience, inconsistent marketing efforts, and a focus on tools over solutions. But the good news is that these challenges can be addressed.

By shifting the focus to consistent sales and marketing efforts, hiring the right salespeople, and selling solutions that solve real business problems, MSPs can start to see growth in new customer acquisition. As Stefanie aptly put it, “You don’t need to pick up every nickel that you find. There’s value in being selective and intentional about who you want to bring into your business.”

MSPs that take the time to understand these dynamics and invest in a structured, proactive approach to customer acquisition will find themselves well-positioned for growth. It’s about understanding what the customer really needs and then communicating the value of those solutions clearly and consistently.

If you’re struggling with new customer acquisition or want to understand how to build a more effective sales strategy for your MSP, don’t miss the full conversation with Stefanie Hammond—Unlocking MSP Sales Success. We dive even deeper into the reasons behind these challenges and offer actionable steps to overcome them. Watch the full podcast on YouTube or stream it on your favorite platform. Your next customer might be just one strategy away!

• Watch Unlocking MSP Sales Success
• Listen to Unlocking MSP Sales Success