If an MSP business stays around 20 years and keeps a single client throughout that time, that one client could produce much more profit than 20 clients only retained for a one year.
If you’ve got a client that stays with you for years, their business grows as yours does. They’ll have increasing IT needs, prompting them to expand the services they purchase from you.
Seeking Prime Retention Goals Keeps Clients Around
If you’re going to see conversion and retention in alignment, there are a few different tactics you’ll want to take. When you hit retention goals, a byproduct of this accomplishment is clients more willing to stick around. Consider these outcomes as tactically strategic approaches:
- Facilitating satisfaction
- Prompting extension
- Initiating advocacy
An MSP business needs to give clients the best possible satisfaction from services. You need to tell them what they’re going to experience and then exceed those expectations. There are a number of ways to do this— one of the best involves underselling yourself initially.
That is to say: you know you can perform at “X” level of service, but you tell your prospects you can give them “W” level of service— a level lesser than your true ability. You know this will fit their needs and even exceed them. But then you can double-down on your quality by overcoming even those expectations. Of course, there’s more to facilitating satisfaction among clientele than this, but it’s a great leg-up.
When a client knows they can trust in the products or services of your MSP, they’re more likely to retain your services over the long run. It’s important, at this point, to keep client relationships strong.
There’s a big mistake made by many MSPs in that, immediately after a prospect converts, they shift focus on other non-converted clients. This is a bad move. You want your clients to feel that you care about them and that you’re invested in the relationship comprehensively— from pre-conversion to ongoing retention.
When clients regularly receive satisfactory— and more than satisfactory— service, this prompts them to extend their services with you. Over time, they’ll become brand loyal to your MSP, advocating you without initiation to colleagues they know who are in need of similar services.
It’s a natural extension of client satisfaction. Now you can help this along a little bit with a referral program like what Tesla offers. Even if you don’t have such a program in play, it’s wise to reward your clients with discounts or something similar should you discover they’ve played the part of advocate for your business.
When an MSP business initiates advocacy through naturally encouraging clientele toward retaining your services by continuously satisfying their needs, that MSP is likely to keep customers around. As they stick around, they naturally need more tech services. Do this right and it’s an “organic” upward spiral of profitability for everyone.