For those of you who have no idea what “churn” is in a business context, it’s just one of those words that sounds like nothing you’d want to be associated with. When we’re talking about churn, we’re referring to clients that you lose and then have to replace to keep your business running.

While it’s true that this is a normal part of doing business and that even the best MSPs experience this, the less churn you have, the better. That’s why this week’s blog will focus on practical ways that you can slow down your customer churn.

Be Proactive

As long as your company is doing a decent job at servicing your clients’ needs, chances are they won’t outright try to get out of their contracts. In fact, most customer loss happens when a contract expires and the client simply chooses to go another route. As technology becomes more advanced and user-friendly, will your clients feel confident enough to take on their IT needs themselves? Hopefully not. But if they do cancel, it’s likely they’ll end up in the arms of a competitor who probably made a cheaper offer. That’s why it’s important to make sure your clients have a high perceved value of your services.

When should you start working to save that contract? Not when it expires! Keeping customers, even if you’re doing a fine job, is something that needs constant attention, not just a few months before the contract ends. As a matter of fact, if you know the contract is coming to an end this year, now is the time to set up a Q1 meeting with them to find out where they currently stand and what their thoughts are about renewing. You should always be aware of your clients’ level of happiness.

Listen to Your Clients

As the old saying goes; there’s a reason why we have two ears and just one mouth. When you speak with your clients, whether during a planned meeting or when they call you, listen to what they have to say without taking anything personally. If a client is unhappy, from their point of view they have legitimate concerns that need to be resolved. Even if everything was done according to the contract, they may have had unrealistic expectations about the outcome. Try to understand why.

On the other hand, you may have clients that are as happy as a pig in mud with the job you’ve been doing for them. Maybe they are so happy with the way things are that they’re planning to sign a new contract with you. But if you don’t regularly talk to them you might not know their feelings.

Both of these outcomes present challenges and opportunities.

Give Them What They Need

You may not like what they have to say, but there is never anything wrong with understanding how your customers feel. For instance, if your customers tend to communicate on the negative side, that doesn’t mean they hate you and you’re doing a crummy job. As an MSP, you’re in a better position to help your customers with their technology than anyone else. Listening to customer feedback should help you improve your products, services, and processes — not just for that one customer, but across the board.

Also, by speaking with your customers, you can see if there were any misunderstandings or lack of communication. In this case, you may find that any reservations on their part can be easily fixed by regular conversations with them.

Even if the client couldn’t be happier, there are still opportunities to be had. Listen to what the customer is saying and ask them probing questions about their business. In doing so, you may find a way to not just keep an unhappy customer, but to grow in the services you provide them. A lot can change over the course of a few years, and maintaining your knowledge of cutting-edge technology is how your clients perceive you as an expert.

Remember Who You Are

If someone wants to buy a computer, they can easily hop on the internet and explore a myriad of online stores. If a customer is at a point where they benefit from using an MSP, that means they have needs that are more nuanced than the average PC user. When a company uses an MSP, it is looking for a partner, not just a vendor.

The whole purpose of selling MSP services is to allow our customers to spend their time doing what they do best without having to worry about their computers, servers, networks or anything technology related. Not only are you a partner, but you’re a growth partner. Simply put, if you aren’t helping your clients grow and thrive, then you’re not doing your best to serve them. If you keep in mind your role in their overall business needs and act on that, the partnership should flourish naturally.

It goes without saying that a business is nothing without its customers. Customer churn is different from customer loss since it implies that the loss has been replaced. However, it takes a whole lot more time and resources to get new customers than to simply keep the ones you have. Obviously, you can’t make everyone happy all the time, though that shouldn’t be used as an excuse. By staying focused on your customers and their needs, not only will you have less churn, but you will have played a key role in ensuring the continued strength and growth of your own business.