Based on a recent joint study by the Chamber of Commerce and the Small Business Administration, the expense of acquiring new customers is between five and seven times greater than the cost of keeping existing customers.
Competition is tougher for small to medium companies and this is why nearly 38 percent of SMB marketers have pledged to improve the consumer retention rate this year, according to data in a study conducted by a marketing company.
Image Source: Google
What MSPs can do to aid your small-sized company?
Smaller businesses already have the resources they have. In addition managing the retention rate puts more stress on the current staff. This is the point where MSPs or managed service companies can be of assistance.
There are many ways in that MSPs could play an active role in keeping their existing clients back:
1. Setting expectations for the client
According to a study conducted by Client Heartbeat, which is an Australian-based software company that 68 percent of its customers leave a company due to poor service they receive. The first stage for MSPs is to establish a standard that is just a little lower than what the company can provide.
2. Making a plan for communication
Customers are drawn to businesses that have solid strategies. Effective MSPs organize quarterly reviews of business meetings to help small businesses understand their successes and failures through a review of data from the previous quarter.
You can even search online for more information about customer retention rates.