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April 3, 2023
By Stefanie Hammond
The numbers show it costs managed service providers (MSPs) five times as much to attract a new customer as it does to keep an existing one. Added to the business case for customer retention is the fact it’s likely more profitable to keep current customers than hunt for and onboard new ones. Studies have shown that, on average, existing customers spend 67% more than new customers, helping to lead to longer-term value. But how do you get there?
The key is to go beyond the traditional mantra of “always be selling.” It’s a volume mentality that works for a time but leads customers to feel targeted versus valued.
For those who are customer-obsessed, the mindset is equally focused but more genuine in nature, taking an “always be earning” approach to the customer experience.
Both approaches can net sales, but an earned effort can create a better experience and more opportunities for cross-selling and upselling. It should also lead to more referrals and references. It’s that “earning” approach that can help you shift the term, and the mindset, from customer to partner.
With economic uncertainty looming, there’s no time like the present to steer your team’s focus to retention and growth. If IT spending proves to be recession-resilient, MSPs need to be ready. Now’s the time to convey your value, retain good customers and grow your business together. Seven ways to make it happen are in the slideshow above.
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