9 customer retention strategies for MSPs

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CUSTOMER RETENTION STRATEGIES FOR MSPS

By Ross Beard


CUSTOMER RETENTION FOR MSPS• Acquiring customers 5-7 times more expensive than retaining customers

• 68% customers leave because they were unhappy with the service

• 14% were unhappy with product/service

• 9% jumped to a competitor


1. SET CUSTOMER EXPECTATIONS• Don’t wait to set the expectations, the earlier the better

• By setting expectations early, you are able to eliminate any uncertainty

• It’s important to know that clients tend to remember negative experiences


1. SET CUSTOMER EXPECTATIONSCase Study: R & G Technologies

• Uses a service based model

• Top 15% of all managed service providers when it comes to speed of response*

• They have implemented strict SLAs which work tightly with their employees KPIs

* Source: Measured by Client Heartbeat

http://www.clientheartbeat.com/msp


2. BE THE EXPERT• To build customer loyalty, you need to become their trusted advisor

• By becoming this trusted source on all things technology, you build that relationship which leads to a dependency


2. BE THE EXPERT• Look for ways to build trust.

• Compliance and Regulations are real buzz words at the moment – great opportunity to demonstrate your expertise and build trust.


3. BUILD TRUST THROUGH RELATIONSHIPS• You do business with people you trust

• As trust increases, commitment tends to get stronger

• Start building shared values with clients


3. BUILD TRUST THROUGH RELATIONSHIPSGet started today:

1. Start a blog and write one post per week

2. Setup a monthly email communication with your clients


4. IMPLEMENT ANTICIPATORY SERVICE• A proactive approach to customer service

• Instead of waiting for problems to occur, eliminate problems before they happen

Example:

• A major airline proactively texts customers to advise them of flight delays


4. IMPLEMENT ANTICIPATORY SERVICE• In the example, the company is taking a proactive approach to what could end

up being a problem that results in a negative experience.

• No one likes to arrive at the airport and find out their plane has been delayed for 50 minutes


5. MAKE USE OF AUTOMATION• Allows MSPs to standardize time-consuming tasks requiring manual

intervention into repeatable processes.

• MSPs who leverage automation are able to focus more time keeping clients networks performing at their best.


5. MAKE USE OF AUTOMATIONThree recommendations for PSA Tools:

• Connectwise (the most popular)

• Tigerpaw

• Autotask


6. BUILD KPI’S AROUND CUST. SERVICE• Improve customer service and your retention rates will improve

A word from R & G Technologies:

“Customer satisfaction is measured quarterly through Client Heartbeat, and is tied directly to employee KPI’s and compensation. We operate in a model with senior engineers assigned to a group of customers. If they do not achieve 8/10 then they fail to achieve their KPI. This is also tied back into a company goal and bonus structure.”

- Jason Neville, General Manager


7. BUILD RELATIONSHIPS ONLINE• Your clients are online, so let’s start building relationships with them online

• Social media is changing the playing field because it provides a venue for the one-to-one connections that create unbreakable bonds


7. BUILD RELATIONSHIPS ONLINEGuide to building relationships online:

Step 1. Setup a LinkedIn group, create a Twitter profile and create a Facebook page

Step 2. Include links to your profiles in all future communications with clients

Step 3. Use these channels to aggressively communicate with yourcustomers

http://learn.linkedin.com/group-management/

https://twitter.com/signup

http://www.facebook.com/pages/create.php


8. GO ABOVE AND BEYONDGoing the extra mile for your customers is an easy way to build strong relationships

As a service business, you have lots of opportunities to woo your clients

By doing this, you can build some serious long term loyalty


8. GO ABOVE AND BEYONDHow to go the extra mile:

• Pay attention to what you customer wants and make their issues, your issues – be proactive in addressing them

• Go out your way to point out some potential issues and fix them before they become problems


9. IMPLEMENT CUST. FEEDBACK SURVEYS• Customer churn can be avoided by simply just listening to your customers.

• Customer feedback surveys are a great way to learn how your service is performing in relation to your clients expectations.


9. IMPLEMENT CUST. FEEDBACK SURVEYSWhat you need to track:

• Monitor feedback on an individual level

• Trend feedback across a period of time

• Use feedback to provide intelligence and make informed business decisions


9. IMPLEMENT CUST. FEEDBACK SURVEYSClient Heartbeat is a business intelligence tool that….

• Automates the customer feedback process by sending surveys periodically

• Trends feedback responses over time

• Benchmarks your performance against other MSPs in your region


9. IMPLEMENT. FEEDBACK SURVEYS

ClientHeartbeat.com/msp

• Client Heartbeat enables testimonial sharing via LinkedIn, Twitter and Facebook


FOR MORE INFORMATIONGet fresh tips and resources on the MSP Heartbeat Blog:


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9 customer retention strategies for MSPs

Technology

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