Q: We’ve seen a lot of customer turnover lately in our IT service business. We keep adding new clients every month, but we aren’t seeing an increase in the amount of contracts we have. How can we reduce customer turnover, so we can effectively grow our customer base?
You’re certainly not alone in this. Every managed services business experiences customer turnover or churn at some point, and they’re all trying to reduce their churn rates. Reducing the number of customers you lose each month can help you exponentially grow your MSP business by making it easier to steadily add new clients to your customer base — instead of just replacing the ones you lost.
The key to reducing churn is focusing on the little things. In fact, you can reduce churn rates by 6 percent just by offering your customers a tutorial for product and service features. In contrast, simply failing to respond to customers on social media increase your churn rate by 15 percent.