It is a well-known fact that the cost of acquiring new customers for managed service providers is several times higher than the cost of retaining existing ones. If you keep your clients happy in the long-term, and if you provide them with reliable services and great IT support, there will be no reason for them to leave you, and thus they will continue regular payouts.
In this article, we are going to compare customer acquisition with customer retention for managed service providers and give some practical advice on how to improve your customer loyalty and retention.
When you attract new clients to your IT services business, the most difficult part is always to make them understand the value of the services and choose you above all other competitors. At this stage, get ready to spend a lot of time, money and effort to lead them to the end of your sales funnel and close the deal.
However, when new clients get to know your offerings better and acknowledge the value of services that you provide, they will be eager to continue working with you on a recurring basis. You will no longer need to prove that you are the best in the field and you won't need to spend any more money on marketing and presentations. All you have to do is just accomplish your work properly to satisfy the client. After the contract is signed, your costs to retain a customer will be much lower compared to the money you spent to acquire the client.