msp business management webinar
DESCRIPTION
MSP BUSINESS MANAGEMENT WEBINAR. INCREASE RETENTION AND BUILD ‘STICKY’ CLIENTS. Gordon Tan G [email protected]. AGENDA. Identify unhappy clients Stop clients from defecting Strategies to increase client retention MSP service benchmarks - PowerPoint PPT PresentationTRANSCRIPT
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MSP BUSINESS MANAGEMENT WEBINAR
Gordon Tan
INCREASE RETENTION AND BUILD ‘STICKY’ CLIENTS
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AGENDA
1. Identify unhappy clients2. Stop clients from defecting3. Strategies to increase client retention4. MSP service benchmarks5. How R&G grew revenue (and profits) by focusing on
retention
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Customer Satisfaction?
As defined by Gallup Organization is:
1. Accuracy2. Availability3. Partnership4. Advice
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How much does it cost?
Losing just one $1,500 contract each year for 4 years and you will lose $180,000 in revenue.
The average MSP currently has just over 12% of their clients “not satisfied” – or open to competitive offers!
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1. IDENTIFY UNHAPPY CLIENTS
• Before you can increase client retention, first you need to identify which clients are unhappy
• Then, find out why are they unhappy?• Establish a baseline for your service so you can track
improvements
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1. IDENTIFY UNHAPPY CLIENTS
• Regular onsite IT meetings• Ticket closing surveys • Quarterly customer feedback surveys
• Trend results• Has client gone quiet?
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2. STOP CLIENTS DEFECTING
• Once you know a client is unhappy, you need to implement programs to stop them from defecting.
• The most successful MSPs have formalized procedures for winning back unhappy customers
• Here’s how we do it at R & G….
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WINNING BACK A CLIENT
1. Identify unhappy client through surveys2. Call client immediately and arrange face to face
meeting3. Add them to a “Customer Watch” list4. Organize a team meeting with staff to discuss
possible causes of issues5. Meet with customer6. Propose a "customer win-back" plan – do you need to
make some concessions? Can they be “Win-Win”?7. More communication is often key! 8. MAKE SURE YOU DELIVER ON YOUR PROMISES
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Here’s an example
1. Client was managed services paying us $4,200 a month – very demanding (by our standards)
2. Client gave us poor heartbeat scores – dropped significantly
3. Added them to our “Customer Watch” list4. Organize a team meeting with TAM to discuss
possible causes of issues which were highlighted as:- A couple of stuff ups on our end- Communication from the client- Client was more demanding than a traditional client
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Here’s an example
5. Met with client on-site6. Explained our situation and our solution:
- Accepted responsibility for stuff ups – offered to fix for free- Weekly phone call with the client- Increase our service agreement for the additional demands
7. The result was client is now happy and we increased contract by $1,300/mth
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3. STRATEGIES TO INCREASE CLIENT RETENTION
• Identify the baseline and then work on improving Accuracy and Availability first.
• Charge more!• Create a “customer intimacy” initiative for 2014
• Quarterly Business Reviews• “Laptops and Lunch”• Webcams• More regular feedback processes
once or twice per year or ad hoc surveys are not what the BIC companies do!
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3. STRATEGIES TO INCREASE CLIENT RETENTION
Create a customer oriented cultureCulture is “social control” – sets of information used to determine what behaviors are appropriate in the absence of procedures
1. Get management buy-in2. (Re-)define values3. Align incentives4. Make at least 1-2 “symbolic”
changes 5. Talk about it until bored6. Hire/Fire against cultural fit7. Celebrate and reward people who exhibit values
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3. STRATEGIES TO INCREASE CLIENT RETENTION
• Offer a service that extends beyond your bare product• Be their trusted ‘IT expert/advisor’• Stickiness by layering products together
• Be prepared to cut lose-lose clients• Set better customer expectations during onboarding • Show that you care by remembering special occasions• Have a regular service improvement focus through
gathering feedback each quarter
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4. SERVICE BENCHMARKS – Why is it important?
• Benchmarking is about finding the best “bang for your buck” for resources you will invest eg. Where will my resource investment create the most value for my business
• Study by The Dunvegan Group shows 9% of your clients will leave simply because they perceive a competitor offering to be better. Our data shows the same….
• Because becoming best in class (BIC) creates enormous value for your business
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Some more reasons to be “Best In Class”
• BIC companies have 70% better retention rates than average MSPs
• BIC companies are growing on average at 30% pa.• BIC companies are getting more referrals• BIC companies can charge higher prices for their
services
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MSP SERVICE BENCHMARKS
ACCURACY (attention to detail)8.1 out of 10 // 8.6 out of 10
PROMPTNESS (response times)8.0 out of 10 // 8.4 out of 10
PARTNERSHIP (collaboration)8.6 out of 10 // 9.3 out of 10
HELPFULNESS (advice and consulting)8.7 out of 10 // 9.5 out of 10
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5. R&G INCREASED REVENUE BY FOCUSING ON RETENTION
• As of last quarter, R & G has finally reached BIC satisfaction levels for a company of our size in Australia
• This process has taken 12 months (4 quarters of constant analysis & improvement)
• Total Revenue increased by 25% last FY – MRR by 40%
• We are now able to charge more, and are more profitable
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5. R&G INCREASED REVENUE BY FOCUSING ON RETENTION
How we did it
1. Implemented Client Heartbeat to get baseline and get quick wins
2. Increased price3. Cut customers where it was “lose-lose”4. Culture5. Implemented customer intimacy initiative6. Quarterly Client Heartbeat meetings
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CLIENT HEARTBEAT
1. Gather client feedback
2. Improve client satisfaction
3. Retain more clients
Used by over 400 MSPs bigand small
Integrates with CW & Autotask
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1. GATHER CLIENT FEEDBACK
Simple, personalized email surveys – with automated email follow-ups
Industry high survey response rates (60%)
Runs on autopilot
Passes all feedback into a simple dashboard
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2. IMPROVE CLIENT SATISFACTION
Track and monitor changes in satisfaction on an individual client level and on an overall company level
Benchmark satisfaction against other companies in your industry
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3. RETAIN MORE CLIENTS
Client Heartbeat uses past scores and industry data to identify unhappy customers
Get instant notifications so you can proactively follow up, address concerns and retain their business
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4. COLLECT TESTIMONIALS
If we detect positive feedback we’ll ask for testimonials and collect them automatically
The client can also share these to their social media
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SPECIAL FOR THIS WEBINAR ONLY
Receive a 30% life-time discount on Client Heartbeat
1. Create an account2. Email [email protected] with account
details3. Account must be activated by December
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QUESTIONS AND ANSWERS
Questions?