7 Strategies for MPSs to Boost Profitability
It is believed that “Acquiring a customer takes 5x the amount of effort than retaining an existing customer, which takes 1x the effort.” And this holds true for any business. Even in the case of MSPs, Customer Retention should be of high priority. Maintaining great cordial relationships with the customers goes a long way. The success rate of upselling to them is also greater. In short, new customers are important but the existing ones will be the ones that add the most value to your business.
According to Altfield, the odds of selling to an existing customer range between 60-70%. Whereas, for new customers, that figure drops to 5-20%.
Another such statistic by Bain & Company states, a 5% increase in Customer Retention leads to a 25% increase in profits.
There are numerous other statistics that support this, which makes one realize how crucial Customer Retention is for the business. If you want to know to boost it, here is a list of 7 strategies to help your MSP attain maximum customer retention:
Skilled Expertise and Customer Service
For you to make a mark in the MSP business and in the hearts and minds of the customer, you need to provide skilled assistance. There’s nothing better than an experienced team that provides instant support and assistance based on the need of the hour.
Skilled Expertise is probably provided by a lot of companies but the real difference is made by the service provided by you and your team at every stage.
Guided Implementation
Starting right from when you sign the SLA, you need to guide your clients and ensure they have a smooth, seamless transition throughout the entire process. Keep in constant contact and send reports periodically to gain their trust. Show them that you take full responsibility and you are proactive about the project. Being an MSP, assure them that you are there for all their technical needs, 24×7.
This not only helps build trust but it increases your reputation and Brand Image. Make your customers feel that you care about them and are willing to help them.
Service Consistency
If your service levels keep fluctuating, no one would want to be associated with your firm. Whether the client is New or Old, the service levels should be constant. Initially, you give highly superior service and your service support is prompt. Later on, if your service levels go down and you get laid-back, your customers are bound to switch.
Ensure that your team understands your goals, your mission and the service delivery agreed upon. Coordinate your customers and your engineers and provide them with a seamless, hassle-free experience.
Casual Communication
Who said you can’t have a casual conversation with your business partners? Remaining in touch with you existing customers should hold a high priority in this list. There’s nothing better than a chill, pleasant conversation to build camaraderie.
Customer Retention would be much easier if instead of talking about work and deadlines all the time, you try to break the ice by engaging on a casual conversation. Casual conversations and empathy go a long way in strengthening relationships with your customers.
Business Communication
Alternatively, business communication should not be overlooked. A proper balance of both types of communication will be fruitful. The main agenda should never be compromised. And a healthy business conversation is not only being all-ears for your customers and their needs but also making your points and recommendations feel valued. In the end, both the sides should be on the same page.
Profitable Outcomes
Companies will continue their association with you if they feel that they are getting profitable returns on the investment they have done- that is YOU. If their revenue increases due to you, they are bound to stay. Additionally, keep your customers updated with your future plan of action to help keep track of the progress. Furthermore, you can even try creating a roadmap, to create and share your plan of action.
Upgrading Yourself
Change is the only constant. If you see an upcoming product being launched or a major change in the industry, be open-minded and give it a try. Being a progressive company in this progressive IT Industry means you have to stay up-to-date and upgrade constantly. For instance, if there’s a better tool in the market that can help enhance your service delivery, adopt that, get certified and suggest these to your customers. Look out for every opportunity to serve your customers well and take your service, up a notch.
Well, the bonus tip here is, if you retain your customers well, they will turn loyal and there is a high chance of them recommending you to their business friends. Word-of-mouth can do wonders for your business! To sum it all up, loyal and happy customers are bound to spend more money than the newly acquired customers.
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