Have you heard the adage that over 80 percent of your profits will come from 20 percent of your current customers? Being in business for over 35 years, I’ve learned this to be true no matter what business you are in. However, for the IT industry, I believe this is even more prevalent.
One of the keys to growing a profitable MSP business is to increase recurring revenue with your current clients. MSPs often put in substantial effort at the beginning of their client relationships but fail to do so as time goes on. This lack of prioritization causes customers to feel unvalued and indifferent, which often leads them to look for a new service provider. In fact, studies show that 68 percent of customers abandon a company simply because they feel that it is indifferent to them. If you agree with the adage that 80 percent of your revenues will come from 20 percent of your current customers, it is more important than ever to make sure that you maintain and foster great client relationships.
What are some ways to keep a great relationship with your clients?
- Get personal: show your clients that they’re not just a contract. Send personalized emails, talk with them in person, and do whatever you need to make them feel like they’re your most important client.
- Show appreciation and check in with your clients on a regular basis. Don’t only talk to your clients when they have an issue or question: check in and have a conversation with them, take them to lunch, send them a gift. Give your customers attention and show them you care.
- Exceed expectations. A little effort can go a long way. Don’t just meet expectations, exceed them. Spend extra time with your clients to show them you can listen to their concerns and resolve them.
- Discover what your client needs. Today, your customers are looking for you to help them beyond your service agreement. Get feedback. Find out what they need and be an expert in areas that can help their business such as cloud and cybersecurity.
- Be proactive. Send short updates to your customers that recap the services you are delivering to them and the issues you have addressed. If something is out of the ordinary, let your client know: they will appreciate that you are paying attention to them.
Your clients are your business. Just a 5 percent boost in client loyalty can spike your profits as much as 95 percent, meaning your efforts to build strong relationships will not be wasted.
Partnering with an experienced cloud service provider that has you, the MSP, in mind can make all the difference in the world for your clients’ ongoing success. Here at Cloud Services for MSPs, we are proud to provide MSPs with superb services that benefit you and your customers’ cloud and business strategies. Give us a call today to find out more.
