An MSP business stands to make more from one client than many, if they get the right client. A single big business that adopts your services over the course of many years may very likely end up producing more profit for you than multiple short-term clients who only retain services at a bare minimum.
If you keep one client around at $10k a year of profit for 10 years, that’s $100k. If you keep 30 clients at $2k around a year, that’s $60k. It comes quicker, but will it stay? Will your rate of conversion and retention remain constant?
Tips to Expand Client Retention
You’ve got to be diligent to keep good clients around as long as you can. Establish a means of scoring them. Consider the following tactics:
Using Emotional Tactics to Foster Loyalty
An MSP business that builds a true relationship with clients ultimately anchors them. A friendship is a lot harder to end than a business relationship.
Means of fostering emotional connection professionally should be used. Additionally, when you can interact with clients outside professional atmospheres, this can be good for fostering emotion. Varying tactics will be effective.
Recognizing Long-Term Clients and Rewarding Them
Give clients coupons, free service, recognition, and other rewards when they stay with you for a set period of time which is greater than the norm.
Use metrics to determine what’s worth rewarding. This builds an emotional connection, and it’s good customer service. It may even prompt organic referral. Consider Tesla’s referral program.
Determining Loyal Clients, Metrically Seeking Similar Clients
Use metrics to separate the “sheep from the goats”. Once you’ve properly scored clients, optimize marketing toward similar demographics going forward to increase the likelihood of converting the right people to your services.
Prompting Increased Client Loyalty
When your MSP business uses metrics to foster client loyalty, rewards long-term clients, and employs emotional tactics, your business will likely retain good clients longer.