This blog will dive into the potential factors driving this downtick in full MSP investment and ideas for retention strategies you can implement to strengthen your client relationships. <\/p>\n\n\n\n
Note: all data cited in this blog is sourced from 探花大神\u2019s eBook, <\/em>Your Route to Positive Client Interactions<\/em><\/a>, unless otherwise cited. <\/em><\/p>\n\n\n\n Understanding the factors that are likely contributing to churn and downscaling is the first step to implementing effective retention strategies to reverse the trend. The following are three common churn drivers among SMEs. <\/p>\n\n\n\n One of the leading causes of client churn is cost. With 75% of SMEs reporting rising licensing and subscription fees from their vendors, it\u2019s no wonder that 28% have decided to stop working with MSPs due to affordability concerns<\/strong>.<\/p>\n\n\n\n In addition to cost concerns, many SMEs feel that the services provided by their MSPs are no longer suitable for their evolving needs. For instance, the report reveals that 26% of SMEs believe they have outgrown their MSP\u2019s offerings<\/strong>, 21% find that their MSPs offer more services than they require<\/strong>, <\/strong>and 16% of SMEs expressed that they felt too small to be a priority for their MSP<\/strong>. <\/strong>This mismatch can create frustration and drive customers to look elsewhere for an alternative MSP with offerings that better align with their requirements.<\/p>\n\n\n\n Security is a significant concern for SMEs, and it plays a critical role in client retention. In fact, 39% of SMEs (both those that use MSPs and those that don\u2019t) express doubts about MSPs\u2019 ability to manage security effectively<\/strong>. This highlights potential for churn for current customers as well as a barrier to entry for SMEs not yet using MSPs. <\/p>\n\n\n\n Fortunately, more than half (56%) of the SMEs already working with MSPs reported that their MSPs have improved their security posture<\/strong>. <\/strong>This indicates that many MSPs are delivering<\/em> on their clients\u2019 expectations of security \u2014 the problem may lie in their ability to communicate those services and benefits upfront. <\/p>\n\n\n\n This situation presents a unique opportunity for you to differentiate your services. By making security a cornerstone of your offerings and including your security offerings clearly in your messaging, you can build trust and loyalty among your clients. Additionally, offering security-focused services or add-ons can enhance your value proposition, showing clients that you prioritize their safety.<\/p>\n\n\n\n The client experience is another vital factor in retention. Nearly a quarter (23%) of SMEs have terminated relationships with MSPs due to poor customer service. <\/strong>This statistic highlights the importance of prioritizing every interaction with your clients. Investing in training for your customer-facing staff will empower them to deliver exceptional service and promptly address any concerns.<\/p>\n\n\n\n Nearly a quarter of SMEs have terminated their relationship with MSPs due to poor customer service or a bad experience.<\/em><\/p>\n\n\n\n To effectively combat churn and attract new customers, consider implementing the following strategies:<\/p>\n\n\n\n By understanding the factors that contribute to client churn, you can strengthen your relationships with SMEs as well as build your customer base. Addressing concerns related to cost, service fit, customer experience, and security will be key to differentiating yourself and communicating your value in a way that resonates with your SME customers.<\/p>\n\n\n\n To dive deeper into these stats and other related to SMEs and how they work with MSPs, check out 探花大神\u2019s free report, Your Route to Positive Client Interactions<\/a>.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" By understanding the factors that contribute to client churn, you can strengthen your relationships with your clients as well as build your customer base.<\/p>\n","protected":false},"author":120,"featured_media":89652,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","inline_featured_image":false,"footnotes":""},"categories":[2782],"tags":[],"collection":[3296],"platform":[],"funnel_stage":[3015],"coauthors":[2532],"acf":[],"yoast_head":"\nUnderstanding Churn Drivers<\/h2>\n\n\n\n
1. Cost and Mismatched Services<\/h3>\n\n\n\n
2. The Security Imperative<\/h3>\n\n\n\n
3. Poor Client Experiences<\/h3>\n\n\n\n
![\"\"](\"https:\/\/jumpcloud.com\/wp-content\/uploads\/2024\/07\/smeittrends-q324-msp-stop-1024x623.jpg\")
<\/figure>\n\n\n\nStrategies for Reducing Churn<\/h3>\n\n\n\n
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Looking Ahead: Building Lasting Partnerships<\/strong><\/h2>\n\n\n\n