MSP metric #3: Track revenue distribution for sustained profitability

MSP metric #3: Track revenue distribution for sustained profitability

While the obvious objective for a managed service provider (MSP) is to provide outstanding infrastructure maintenance services to its customers, it's also imperative to ensure sustained profitability because it would be impossible for an MSP to remain in business without earning a profit. To ensure continued growth and profit, an MSP is required to closely monitor a few key metrics or KPIs, one of them being revenue distribution.  


Revenue distribution is a measure of how the total revenue is split amongst the customer base. It can also tell you the service types that generate the maximum revenue. For instance, if you notice a large percentage of the revenue coming from a small section of your customer base, it shows that your business is highly dependent on those few customers. So, it's best to consider customer diversification to reduce risk. 

 

You can create a revenue distribution report using Analytics Plus as shown below:


X-axis: Request type (actual) - from Request table

Y-axis: Total charge (sum) - from Worklog table

Color: Account (actual) - from Request table





Click here to check out more insightful  MSP-specific  reports and dashboards that can help you optimize your support processes, track revenue, and manage risks. 

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