How to Reduce Churn of Managed Service Clients

11/16/2017

“We keep adding new clients every month, but we aren’t seeing an increase in the amount of contracts we have.”

For managed services, client churn can be a real problem. You may have experienced this at some point, even if you give your best service. You’re certainly not alone in this, and reducing the number of customers you lose every month can help grow your business. With this, you can avoid figuratively taking one step forward and taking two steps back. And steadily increase your client base instead of just trying to replace the ones you lost.

The key to keeping your clients is in focusing on the little things. A kind gesture of a tutorial for product and service features can keep your clients from leaving. In contrast, simply failing to respond to your customers on social media can increase the chance of them looking for a new MSP.

Make It Personal

Don’t become a stranger to your clients. Send them an email, call them, or visit them. Your clients would like to feel that you truly value their business. So be diligent in reminding them that their business partnership with you is important. Keeping a regular contact with your client will show your genuine care. And keep in mind that if you’re not calling your clients, someone else will. Needless to say, it’s usually your competitor.

In business, making friends is important before making a sale. And this holds true for your clients too. Getting to know your clients at a personal level can also strengthen your relationship with them. What are their interests? Do they have a hobby? Do they have kids? It would be easier to open difficult conversations with your client if you have a personal connection with them.

Also, be honest when something is not working. If a customer leaves you because you lied about something, this could deal real damage to your business. In contrast, you can part amicably if you are honest when things aren’t working out. And it leaves your door open for your clients to do business with you in the future. But being honest in the first place allows you to work out your problem and avoid churn of your managed service clients.

Listen to Your Clients

Surveys are not just important for you, but for your clients too. A survey is your way of telling your clients that their opinion matters to you. At the same time, this is a great tool for you to objectively measure customer satisfaction. Even a survey of having five to 10 questions would be a good place to start. A simple scale of 1 to 10 and at least one open-ended question will provide you with metrics to work with. And email makes it so much easier to today to deliver these survey forms.

If you receive responses below an acceptable level, consider this as a good opportunity for growth. You clients will always have something to complain about, it’s common in doing business. What’s important is making a follow up with your client to fix the problem. On the other side, you celebrate glowing reviews from your clients. With their permission, you can use their feedback as testimonials for future marketing messages.

You can choose to write your own surveys, or if possible you could hire someone else to do it for you. There are tons of resources on the web to help you out in this. This may take some of your time, but it’s worth to reach the heart of your clients. And because this method is impersonal, you could expect honest reviews whether your client is satisfied with your services or not.

Build a Loyal Customer Base

Loyal customers are gained through your long history of delivering good results and keeping your word. They are less likely to leave you because they are more invested in your business relationship. So even if problems occur, they are too quick to abandon ship. This is one benefit of customer loyalty, you have room for error. On the other side, one misstep with a customer with no loyalty to you is a free pass for a quick exit.

To build loyalty, take time to let your clients know what you’re doing for them. This does not need to be a board meeting. A quick call, or a short email can do the job. Your clients may at times take for granted how valuable your service is. So it’s your job to let your clients know of the hard work you put so their own business is up and running smoothly. Of course, you do this without the ego.

Something like, “I was going through our monthly report this weekend and this is what I found that we could do better…,” will do. In a very subtle way, you are telling your client that you are working on the weekend. And this sends the positive message that you do care about their business, and not just about how much they pay.

Also, everyone loves dealing with the business owner. So it’s important that you take the lead. It’s should be your priority to engage and build loyalty with your existing clients. There’s just something about dealing with the boss. It gives your clients assurance that you are paying attention, and they have your word. So listening to your clients, making a personal connection, and building loyalty, all work well together to reduce churn of your managed service clients. The extra effort you put in now will be worth the long-term benefits for your business.

If you need help keeping in touch with your clients, check out our Technibble Membership. We provide Done-for-You Newsletter Content to Gain New Leads and Reactivate Existing Clients.