We’re into the second full day of Kaseya’s ConnectIT 2019 event. One of the major topics of content and conversation here at the event so far has been how to combat MSP (Managed Service Provider) churn.
In a world where customers are deeply entrenched with their existing MSP, it’s hard to win new business and lure them away.
Yesterday, Kaseya unveiled a bunch of fascinating and surprising statistics which highlight what really drives customers to switch, which we’ve listed below (all stats courtesy of Kaseya).
Not only can these stats help you understand how to win new customers off your competition, but they can help you keep and grow the ones you have already.
Key statistics on MSP churn
- Industry-wide, fewer than 7% of customers switch MSP each year
- 95% of MSP customers have switched MSPs when unhappy with the service they received. (meanwhile only 5% switched on price!)
- In 2018, 17% of MSP customers purchased some mix of advanced services managed by MSP (by 2022 that will be 77%!)
- When asked what drives them to switch, 69% of customers reported that it was a “poor service experience“
- 59% reported a switch driver as being “incomplete solution offering”
As an MSP you can build out your advanced services and complete your solution offering by gradually upskilling and growing your service suite.
However, “service experience” is potentially a more tricky one to solve. The reason is that a customer’s opinion of why their service experience was good or bad can vary greatly. For some customers it’s all about speed of resolution. For others, it’s how much the technician cared and listened to their problem. For still others it’s the quality of the technical knowledge and planning.
Customer experience is nuanced and can be very granular.
Ask yourself this question… What’s it really like to do business with your company?
Forget the systems and processes you know exist. Forget the mission and values. Just think about (and take customers out for lunch and ask) that question.
What are you doing to make customers feel special, valued?
Is your day-to-day interaction process seamless for them? What else can you do to reduce any friction for them? Remove any hassle? Are you asking them to fill in online forms repeatedly, make unnecessary calls? Log in to lots of things over again? Create a program to take these things out. This is your brilliant basics program.
The ask what you’re doing to get talked about, to remain memorable? To add enjoyment and a smile to their day. This could be something as small as adding a chat system that supports Giphy, or sending welcome packs with candy in for the team at the start of your engagements. Work out what makes sense for you and your MSP brand. This is your magic touches program.
Once you’re built in your brilliant basics, and magic touches, keep on top of customer sentiment by tracking it throughout the lifecycle of their time with you.
And now, measure
To get a clear picture of how you’re doing, you need to ask customers regularly and in a way that makes it easy for them to tell you.
Customer Thermometer was designed entirely to help minimize churn. It lets you get feedback from any ticket or interaction you have, in a way that’s really fun for the customer too.
Try it yourself today, for free… (oh, and it integrates with the whole Kaseya suite, as well as ConnectWise, Autotask/Datto, ServiceNow and many more)