Danger! Never assume your MSP’s clients are loyal

The podcast powered by the MSP Marketing Edge Welcome to Episode 314 of the MSP Marketing Podcast with me, Paul Green. This week…

Danger! Never assume your MSP’s clients are loyal: It’s hard for MSPs to win a client, but when they do join you, they stay with you for years. But what if that retention leads to a false sense of security? The reason your MSP’s marketing is so hard: MSPs often struggle, not just with knowing what marketing to do, but also with implementing it. And yet implementation is the secret sauce. Does your MSP spend this much acquiring a new client?: My special guest is a true marketing expert and he’s very good at focusing the MSPs that he works with on two figures – the cost of acquiring a new client and their average lifetime value – and how these figures affect their marketing. The Marketing Minute: Don’t miss this game changing CRM marketing tip.

Danger! Never assume your MSP’s clients are loyal

As an MSP, have you been lulled into a false sense of security? It’s hard for you to win a client, but when they do join you, they stay with you for years, right? But what if that retention was not because they’re in love with your service, but because it’s such a mind blowing event for them to think about switching to another MSP, so it just feels easier to stay with you. If this hasn’t happened to you yet, are you confident that right now a client isn’t secretly looking into leaving? Here’s a simple solution to proactively work on your retention without having to do tons of extra work, and you might even generate some extra revenue along the way. Most MSPs I meet are rightly proud of how long their clients stay with them. You’ll hear them say things like, Oh yeah, we’ve still got our first ever client from 10 years ago, or, Our retention rate is 98%. And on the surface that’s brilliant, but here’s the uncomfortable truth… a lot of that so-called loyalty isn’t really loyalty at all. It’s just inertia. Your clients aren’t staying because they’re wildly in love with your service, they’re staying because it feels too hard to leave. Think about it, moving to a new MSP is a massive hassle. It’s complicated, it’s risky, and they don’t really understand all of the tech side of it anyway. So even if they’re not a hundred percent happy, it’s easier to just stick with what they’ve got. That’s called inertia loyalty. And the danger is it gives MSPs a false sense of security.

You might think you’re doing a great job keeping clients happy, but the moment one of those loyal clients gets a real reason to look around, they will.

Maybe a competitor reaches out at just the right time. Maybe there’s a big mistake or your main contact leaves. Suddenly that inertia disappears and the client that would never leave is gone. If this hasn’t happened to you yet, I promise it will at some point. It’s horrible. None of us wants to think about it, but it’s also a wake up call. And the way I see it, we can prevent it. So what’s the answer? Well, you can’t just hope that loyalty lasts, you’ve got to work at it. You’ve got to turn those stuck clients into bonded clients, the kind who stay because they genuinely want to. And the good news is this doesn’t take huge gestures. It’s about doing small things regularly that make your clients feel...