When an MSP company has long-term customers, it’s going to be more secure. One client paying in $20k a year for 10 years represents $100k. Twenty clients paying in $2k for 2 years only bring in $80k. In this case, the slow-but-sure “bet” on a long-term client ultimately ends up serving your MSP better.
Considerable Benefits of Client Retention
Retaining clients may require concessions here and there, but the long-term benefits outweigh the short-term losses. Consider the following benefits associated with retention to get an idea:
Client Retention Costs Less Than Acquisition
An MSP company which retains clients will find that upselling them is much less expensive than developing new content, disseminating it, and maintaining it. You can market internally to existing clients, using data you’ve collected to inform outreach such that it makes its way to clients when they are in the middle of scaling out, or some similar operation. This could predicate increased service delivery from your MSP and profit.
Loyalty in Clients Should Increase Profit Pertaining to New Clients
When you’ve got a passel of loyal clients making up your service delivery roster, that’s going to lend your operation credibility. There’s a much greater likelihood that you’ll get new clients. They’ll see you as a tech pillar of the local community–a bit of an institution, as it were.
A Brand Filled with Many Loyal, Long-Term Clients Is Seen as Trustworthy
When you’ve got clients who’ve been with you for many years, in addition to obtaining new clients, you’ll give the community a perception of trustworthiness. You’re not going to keep clients long if you treat them wrong.
Maximizing Client Retention
There’s a good reason your MSP company should strive to retain clients. You’ll be seen as more trustworthy in your local community and you’ll likely see an increase in new clients as well as savings in marketing: internal outreach is less costly than external marketing.