Every MSP company should make a concerted effort to minimize customer churn. However, reducing customer churn is easier said than done. It costs an egregious sum of money to simply acquire a customer. There is no sense spending through the nose to acquire customers when you can spend comparably less to retain your current customer base and maintain a steady revenue stream across posterity.
Let’s take a quick look at the best strategies for enhancing customer retention while decreasing churn:
Less is Often More
The systems customers use to interact with your MSP company should be intuitive and simple in all regards. This is not to say everything should be dumbed down to appeal to those who lack tech skills and a high level of intelligence. Rather, your website’s design should be minimalist in design and structure so customers can find exactly what they are looking for in a timely manner. This way, when prospective customers visit your website, they won’t be frustrated by the process and end up searching for what they are looking for at a competitor’s website.
Zero in on the Data
The best business decisions begin with a thorough analysis of data. Though gut feelings and intuition are often important when making decisions, there must be some underlying data to back up those decisions. If solid data is not available, relying on your gut feeling is nothing more than a risky guess. Data pertaining to customers’ decisions to leave for a competitor is particularly important. You can gather data pertaining to customer churn through short surveys, phone calls to customers who are no longer spending as much money, follow-ups with customers who only partially complete the on-boarding process and third-party data that gauge your website’s ease of access. Even a third-party analysis of your social media and email readability will help determine if there are improvements you can make to keep customers in the fold.
Add Something Extra
When businesses consider the prospect of providing a freebie to customers, most decision-makers think it is a good idea to give away goods/products featuring the company name and/or logo. Though these items help with marketing, they do not always enhance loyalty. The better approach is to provide customers with something personal such as a handwritten message expressing gratitude for their business or a phone call to gauge customer happiness.
Recognize that Minimizing Churn is an Ongoing Battle
Though your MSP company will never be able to stop customer churn altogether, you can do your part to minimize it as time progresses. Seize every opportunity to decrease friction points, provide your customers with support from the beginning of the sale to the end and continue to find new ways to provide a unique value offering. Once your customers feel loyal to your business, they will be that much more likely to pay for your services across the long haul.