msp client retention

MSP Client Retention Will Sustain Your Business

Carrie Richardson, Richardson & Richardson Consulting

MSP client retention is the cornerstone of a thriving managed services business. Understanding that a decrease in revenue more often signifies a client retention issue rather than a deficiency in sales efforts is vital.

Clients often come to us looking to solve what they believe is a sales problem.  Their revenue is dropping and they need to replace it – quickly! Before diving into outbound sales and marketing as a fix for revenue dips, it’s essential for MSP business owners to strengthen their service delivery, ensuring high levels of client satisfaction and retention.

You can invest as much as you want in sales and marketing, but if you can’t hold on to the clients you’re finding through your sales initiatives, your business will not grow and you will never see a return on the significant investment of time and resources you’re assigning to the wrong places.

Shifting Focus: From Sales to Client Retention

While outbound sales, such as cold calling, may seem like a direct path to recovering lost revenue, it’s crucial to recognize that retaining existing clients is both more economical and impactful for long-term success. Not surprisingly, 75% of clients switching MSPs cite service delivery issues as their main reason for leaving, highlighting the critical role of MSP client retention strategies in business sustainability.

Achieving excellence in service delivery starts with a nuanced understanding of client needs and adapting your services to meet and exceed those expectations. This proactive approach not only solidifies your client relationships but also fortifies your business against competitors’ overtures.

Understanding the Economics of Client Retention

The financial logic behind prioritizing MSP client retention over new client acquisition is compelling. With the cost of acquiring a new client significantly higher than nurturing existing ones, focusing on enhancing service delivery and customer experience emerges as a cost-effective strategy for MSPs aiming for profitability and growth.

This doesn’t undermine the importance of consistent sales efforts but underscores that every service interaction is an opportunity to reaffirm your value to clients, enhancing MSP client retention.

The Foundation of Retention: Superior Service Delivery

Before investing in sales and marketing to address revenue challenges, MSPs should scrutinize their service delivery and customer experience. Identifying and rectifying any service delivery shortcomings can prevent your clients from seeking alternatives. Key questions to reflect on include the seamlessness of client interactions, the presence of any frustrating aspects in your service, and strategies to eliminate such pain points.

The goal is to develop a service delivery model that not only meets but delights your clients, ensuring high levels of MSP client retention. This approach not only shields your MSP from the threat of client poaching but also lays a strong foundation for a loyal and satisfied client base.

Once You’ve Solved Retention, Start to Focus on Sales

While sales and marketing play a crucial role in MSP business strategies, they should not detract from the paramount importance of MSP client retention. By making your services indispensable and ensuring that every client feels valued, MSPs can secure their revenue base and pave the way for sustainable growth. Prioritizing MSP client retention is not just a strategy for maintaining revenue—it’s a philosophy for building a resilient, client-focused MSP business.

Once you’re ready to add clients that you know won’t churn, it would be our privilege to assist!  Email us at, or fill out the form below!

Quick Contact

To find out more about our services, fill out the form below.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.