The IT world is a competitive place and maintaining a stable customer base is a critical step in becoming a successful MSP company. Unfortunately, some customers can be very costly, with frequent security mishaps and always needing extra IT help. These clients can cost you extra money and ultimately, they can become an added expense instead of an asset. While some companies have terminated unprofitable customers, there are a few things that you can do to avoid reaching that scenario. Here are three things that you can do to prevent making such a drastic step.
1. Charge Additional Fees
While a typical IT provider charges a set monthly fee, sometimes it is in the best interest of the company to charge additional fees for the addition of costly services. For example, if they are continually contacting your IT techs for various field visits, it may be time to charge a fee for each time you visit their company. Ultimately, this will discourage them from contacting you and will give your IT team a break from constant service trips. If they are unhappy with this scenario, they can either move on to another company or limit their frequent contacts with your IT team.
2. Promote Less Costly Options
Another way to reduce costs is to promote other services that are not as expensive for your MSP Company. For example, instead of always trying to fix issues at their office, try to help them repair their problems over the phone or online. This inexpensive option still gets the job done without the additional costs of driving back and forth to a client’s office. It is also a good idea to communicate these tips to clients and explain how it is beneficial for both parties involved. The vast majority of clients will listen to your advice and try to avoid causing any inconveniences.
3. Limit Services
Limiting services for costly clients can help reduce costs and it can discourage them from contacting your IT staff for unnecessary requests. Limiting services will have a few drawbacks, as it can anger the client and ultimately cause them to leave you for another competitor. Nevertheless, it is an addition by subtraction as you will avoid having to deal with needy clients that take up too many resources.
Terminating a Relationship with Client
Finally, if none of these options work, it is in the best interest of your organization to end the relationship with this particular client. Continually catering to unnecessary requests puts a strain on the company and is not worth the additional investment of resources. Before you contact the client, it is important to be professional and explain the reasoning behind the termination. Failure to be polite can escalate the situation and cause high tensions between both parties. While firing customers may not be the desired outcome of a relationship with clients, sometimes it is the best thing for everyone.
As you can see, expensive clients can be a drain on any MSP company and can severely limit its full earning potential. Deciding further actions against these clients can help you reduce expenses, whether it is charging additional fees, promoting less costly options, or limiting services. If the problem is still uncontrollable, it may be time to move on and let them know that you will no longer be able to provide them with IT services. It is important to discuss these options with your staff and come together with a collective decision. Succeeding in the managed services world can be difficult, and the addition of costly clients may not be worth the hassle in the long run for your business.