6 Steps to Scale Your MSP or MSSP with Compliance Services

Growth-minded managed service and security providers must focus on improving three things: margins, recurring revenue, and customer retention. But facing a market of fierce competition, increased commoditization, and evolving client demands, growth is at a premium.

And yet, growth goals remain aggressive. Around 70% of security providers are targeting at least double-digit revenue growth this year, according to our State of Continuous Compliance Report. Pretty ambitious considering many providers struggle with one-off engagements, high churn rate, and a lack of tools and resources. 

To overcome these challenges, MSPs and MSSPs are increasingly turning to continuous compliance services — first out of necessity but now as an opportunity. Of the hundreds of providers surveyed for our report, 74% view compliance as a high-growth business area. But it currently represents a disproportionately small percentage of their overall business and revenue.

For providers looking to stand out and scale up, continuous compliance as a service is an appealing onramp to higher margins, revenue, and retention. 

This post covers six steps to help your organization create a winning compliance offering. Or for those already offering compliance, turn your compliance services into high-growth opportunities.

‍

A Shift in the Security Provider Business Model‍

For MSPs and MSSPs looking to set themselves apart, adding compliance services to their offerings is a smart move. In fact, the compliance as a service (CaaS) market is expected to nearly quadruple in value, growing from $7.55 billion in 2023 to an estimated $26.75 billion by 2032. 

But if there's such a massive opportunity, why are only half of providers offering managed compliance? According to the findings of our State of Compliance Report, only 50% of providers offer managed compliance. This is surprising considering 70% of providers say their clients would be interested in continuous compliance services for ongoing monitoring and scoring, rather than just for audit prep.

Though providers see the value of continuous compliance services, something is holding them back. Of the providers surveyed for our report, 85% said they face significant challenges managing compliance for their customers. Some lack the resources or expertise, while others face high costs or don't have the right tools and tech. But there's a common baseline for all providers: Offering a top-notch ongoing compliance program and automating client workflows with a continuous security compliance platform can increase recurring revenue, beat the competition, and increase ROI.

Are Compliance Services Worth It?‍

While many managed service and security providers are turning to compliance as a revenue opportunity, it may not be right for every business. Here are a few key metrics to help you measure potential impact and evaluate the opportunity: 

• Annual Recurring Revenue (ARR): Keep an eye on how many clients stick around for the long haul. This will show you if the shift is leading to stable, ongoing revenue.
• Margins Compared to Existing Services: Compare the profit margins of your new CaaS offerings with your current services. If continuous compliance services bring in higher margins, it's a good sign you’re on the right track.
• Client Satisfaction and Retention: Higher satisfaction and retention rates mean your clients see the value in what you’re offering.
• Client Feedback: Ask your clients how much value the compliance offerings bring to their business and what improvements they’d like to see.

‍

Take your time, crunch the numbers, and gather insights before making the leap into offering compliance services. Using our ROI calculator for providers, you can see the value of continuous compliance in your own numbers (when offered through Apptega). 

Additionally, consider the long-term scalability of compliance as a service. Can your business handle the potential increase in demand without compromising service quality? Also, think about the training and technology investment. Will the initial costs pay off in the long run?

You can also track and measure over time the number of identified and mitigated compliance violations, number of successful compliance audits and certifications, and total CaaS-generated revenue. If all these metrics make sense, then it’s time to take the leap forward and expand your services. Let’s discover how. 

‍

6 Steps To Scale Up and Grow Through Compliance Services

‍

1. Appraise your current capabilities

Identify strengths and discover gaps that need attention before offering compliance services. Some questions to ask yourself are:

• What are you doing well now and why is it effective? Are there any niches or specific industries where your services offer the most value? Are there gaps that need to be addressed?
• What are the capabilities of your existing team members? Which compliance services can your employees effectively manage? Do your employees have experience using automated cybersecurity tools, data loss prevention (DLP) solutions, and other compliance software?
• Do your team members have experience working with specific compliance frameworks, such as HIPAA, PCI DSS, or GDPR? What is their role in ensuring your business is compliant with all relevant requirements? Do they have a solid understanding of the latest compliance requirements in your target industries?
• Do you need to hire new team members or partner with other organizations to add expertise to your business?

‍

2. Identify your target market

Help focus marketing and sales on organizations most likely to need compliance services by identifying and zeroing in on the markets you wish to target. Questions to ask yourself when doing this are:

• Which industries or organizations are most likely to need these services?
• Which industries are most highly regulated?
• Which industries are facing the biggest compliance challenges?
• What size business do you want to serve: SMBs, large enterprises, or both?
• Are you targeting local businesses, regional businesses, national businesses, or a combination?

‍

3. Bundle security and compliance services into one

If you’re offering cybersecurity services, it's likely you already address compliance requirements to some extent. To further capitalize on the work you’re already doing, consider creating a formal, productized compliance offering and bundling it with your existing security services. By targeting compliance outcomes and validating your security services against framework best practices,  you can not only improve your value prop but also boost revenue through more holistic offerings.

So, pick the compliance services you want to offer and package them in a way that appeals to your clients. Some factors to consider while doing this are:

• Delivering cybersecurity against compliance frameworks - the frameworks help create a security baseline by providing security best practices. 
• Performing risk assessments to help organizations identify and address compliance risks.
• Running a gap analysis to uncover weaknesses between current compliance posture and target compliance posture.
• Assisting clients with compliance remediation to implement industry-recognized frameworks, controls, and processes.
• Continuously monitoring client security postures.
• Proactively identifying and resolving potential problems — before they impact operations.

‍

4. Build a competitive pricing model

Pricing is always a thorny issue for compliance services. Providers often struggle with thinking that buyers don’t value compliance — but it depends who you’re talking to. For instance, a small dairy company may not value it as much as someone who operates in the financial services or health care areas, where failing an audit or getting breached is a big deal. Ultimately, your pricing should reflect how mature the customer is in their compliance journey and what they actually want to achieve.

The best customers are those that care about both security and compliance because they'll likely invest more. Even though those services overlap, they’re going to maximize the scope and span of the control services.  

Make sure your prices are fair and competitive while also allowing you to turn a profit. Some questions to consider when building your pricing model:

• How much does it cost (labor, technology, and resources) to provide each new service?
• How much value does it provide for you clients? Does your service reduce compliance penalties, decrease risk, improve posture, or improve efficiency for them?
• How much do your competitors charge for these services?

‍

5. Invest in training and certifications

By investing in training and certifications, you can ensure your team has the necessary skills and knowledge to deliver CaaS. And it gives them thed confidence they need to take your services to the next level.

Things to consider:

• Look into relevant compliance certifications, such as certified information systems auditor (CISA), certified internal controls auditor (CICA), or certified controls specialist (CCS).
• Have team members network at industry events and conferences as well as read the latest industry news to learn about compliance trends and best practices.
• Offer continuing education and certification incentives. The more your team members learn and grow, the better for them — and your business.

‍

6. Market and sell compliance services

Get help generating revenue by marketing and selling compliance services packaged with your new offering. Consider the following:

• Develop a marketing plan for compliance services that targets the markets and organizations most likely to use them. Pinpoint what makes your MSP or MSSP different from other CaaS providers, and let the client know how these differences will help them.
• Make the closure of compliance deals a fixture of your sales process. Work with your sales team on upselling strategies for existing clients.
• Partner with other businesses like law and accounting firms to help spread the word about your services to their clients.
• Use omnichannel marketing strategies. Focus on social media, blogs, email, downloadable guides and eBooks, and partner or channel marketing, establishing metrics for marketing qualified leads.
• Develop a client education strategy about compliance violation risks and compliance benefits.
• Leverage a partner program like Apptega's for additional go-to-market support.

‍

You can use these six steps as a foundation to build your CaaS strategy. Other helpful tips: 

• Focus on your expertise. 
• Focus on value. 
• Offer free consultations about tangible service benefits. 
• Make it easy for new clients to buy your services (for example, concise sales processes and simple online sign-ups).

‍

How To Successfully Grow After Adding Compliance Services

Even when your program is up and running and your sales team is closing new deals, it’s not time to rest on your laurels — the job’s not done. The success of your compliance program hinges on client service, for both existing clients and new ones:

• Client Onboarding and Support: Start strong with comprehensive onboarding and technical support. Make sure your clients know how everything works from day one and have the support they need, whenever they need it.
• Training and Education: Keep your clients in the loop with regular training and educational resources. This helps them stay compliant and understand the value of your services.
• Always-Available Engagement: Be there for your clients through various channels, whether it's phone, email, chat, or social media. Always being accessible builds trust and ensures quick resolution of any issues.
• Build a Compliance Culture: Lead by example by adopting industry-recognized frameworks, controls, and best practices in your own business. Show your clients that you practice what you preach and take compliance seriously.

Remember: Technology is your best friend. Leverage advanced tools and platforms for continuous monitoring, management, support, and reporting. This not only automates the process but also provides your clients with real-time insights and peace of mind knowing their compliance status is being constantly monitored.

‍

Ready for the Next Evolution of Your MSP or MSSP?

With the right planning and forethought, you can successfully evolve your business model to offer new compliance services — and reap the benefits that come with it. If you’re just getting started, using the right software platform can make it easy to build and manage compliance programs with fewer resources.

If you’re looking to grow by offering compliance services, you should consider Apptega. Our platform is the leading cybersecurity compliance platform trusted by security-focused MSPs and MSSPs to efficiently and continuously conduct assessments and manage client security postures.

To discover how Apptega can help your MSP or MSSP automate compliance processes and increase the value of your compliance offerings, request a free trial today.