Say your MSP business has the choice of 10 new clients who each stay with you for a minimum contracted term of a year or one client that stays with you for fifteen years. Which is going to make you more money? Well, in the long run, it’s going to be the single client.
That individual client will make 50% more than the 10 in fifteen years at the same rate. Also, you won’t have to devote as many internal resources toward management of this single client over the long-term. Though 10 in a year would keep your business busy, integral professional details would fall through the cracks.
Facilitating Long-Term Retention
The key to efficient operations that are perpetually profitable is client retention. Following, we’ll briefly discuss several issues that come between MSPs and long-term client retention:
Keep An Eye On Your Churn Rate and Reduce It As Possible
Your MSP business can’t afford to have a one-and-done churn-rate. For example, it’s not without the bounds of possibility that an e-commerce site may have a churn-rate as high as 80%. That is: 8 out of 10 buyers purchase one thing from the site then disappear for good.
As an MSP, you’ve likely got a one-year contract requirement defining many SLAs. Still, you’ll have churn. You’ve got to reduce it. Costs, packaging, marketing, PR, customer service, and provision of new tech options can all help reduce churn; different tactics in different balances will best serve unique MSPs.
Truly Hear What Clients Are Saying, Render Professional Response
If you want to know what clients want, listen to what they say. Sometimes, what they want is something they already have; they just don’t realize it, and by listening you can make that deduction. You’ve got to hear and respond appropriately. Don’t be reactive, listen carefully. They may have a legitimate issue, then again, they may just not understand. Either way, when clients know you truly hear them, they’re more likely to stay with you over the long run.
When You Can Make Something “Right”, You Should Do So
If there’s an issue clients have which is fixable, fix it–within reason. Certainly, some clients want everything free, and that’s just not feasible. However, sometimes they just need a change in basic interface, which is easy to do. When you listen, you’ll better understand what you need to do to please them so they stick around.
Keep Clients Happy and Retain Profitability
An MSP business that fixes problems clients encounter, listens to clients who have issues and works continuously to reduce churn rate should see an increase in retention over time. Focus on keeping clients more than acquiring the greatest number of clients for the best sustainable profitability over the long-run.