MSP business owners are well aware of the fact that churn rates matter a great deal across the long haul. An especially high churn rate decreases profitability through reduced revenue and wasted customer acquisition investment. It is imperative your IT business reduces its churn today and across posterity. Otherwise, you will pay through the nose to acquire new customers over and over again as time progresses. The solution to a high churn rate just might surprise you.
An Understanding of the Churn Problem is Necessary in Order to Solve It
If you do not understand the nuances of your company’s unique churn problem, it will be impossible to solve it. Take a look at the aggregate data across all clients who churn as opposed to their last action prior to exiting and you will have valuable insight at your fingertips that helps you make the best possible decisions going forward. Perhaps a service flaw is to blame. Maybe your marketing department’s outreach programs are ineffective. Invest the effort necessary to identify the true problem and you will have the information you need to develop the appropriate solutions for reducing your churn rate.
Engage Your Customer Base and They Will Prove Loyal
Much is made of the importance of keeping employees engaged with their work. However, engagement is also important for customers to boot. Do your part to ensure those who use your products and services enjoy them and they will prove engaged. However, engagement cannot be quantified with ease. Engagement typically involves an array of factors ranging from customer product searches to the time spent on your MSP business website and interacting with your team on social media. The moral of this story is customer engagement is strongly tied to your company’s return on investment.
Recognise the Importance of User Reactivation to Stop Churn
Those who are truly engaged with your business are that much more likely to stay around for the long haul. However, even the best MSP businesses will lose customers here and there for various reasons. If you notice a couple of clients slip through the cracks, do not give up. It is still possible to save these clients through reactivation campaigns. Such campaigns are designed to zero in on dormant clients and renew their interest.
As an example, consider providing dormant clients with a single-use discount to recover their business instead of sending out a newsletter once each week. Reactivation campaigns really can have a major impact on customer retention. In fact, it is even possible for a strategic reactivation campaign to solve client churn issues in one fell swoop. As long as you are proactive, you can re-engage dormant clients in a reasonable amount of time.
Focus on maintaining customer engagement and your MSP business will benefit in the long run. So don’t let customer churn discourage you! Every business has a certain amount of churn. What matters most is how you respond to this challenge.