It is no secret that there is exponential growth within the managed IT services space. The managed services market is expected to be worth $282.0 billion by the year 2023, a $101.5 billion increase. There is no slowing down this sector. This explosive growth is no mistake as the rampant rise in network outages, malware attacks, and much more has signaled a need for businesses of all types and sizes to prioritize IT and cybersecurity.
Many businesses have long relied on the managed services provider to solve their IT problems for them. However, this explosive market growth has led to a greater number of MSPs being available. A business no longer will wait around for an MSP to right the ship and will instead switch their service to another provider.
How can your MSP business avoid losing clients to other businesses? What must you do to differentiate yourself from other MSPs? Why not start with the reasons the average business will leave their current MSP for another? VIPRE Security has collected three key reasons why the average business will ditch their current MSP.
1. Slow Response
The first reason is enough to drive any client mad and into the arms of another, more responsive MSP. These clients hire an MSP for a reason - to take the worry of their IT troubles off their hands. However, when things go wrong they expect it to be resolved as quickly as possible. If, for example, there was a network outage and it took more than 6 hours to respond to their ticket, they could lose a whole day’s productivity or more by the time you are able to get their network up and running again. This could mean thousands upon thousands of dollars lost for a business.
If you are looking to make sure your client doesn’t leave you, you must do a few things. First, ensure that the service level agreement (SLA) you have is being fulfilled regularly by your team members who provide support. Keep the promises you made to your clients.
Second, clearly define the terms of your SLA so clients clearly understand what is to be expected in certain events and support requests. Also, you may have the ability to increase recurring revenue with clients if selling different levels of support access. Some companies will even give priority support to customers that meet a certain business profile.
Finally, when explaining the SLA to a client, explain it in terms they will easily grasp. Many SMB owners an MSP serves are not as savvy when it comes to technology. It is appropriate to help them understand the processes and timelines from your perspective to set realistic expectations. Transparency can lead to trust which leads to customer loyalty.
2. No Cybersecurity Preparations
In the past, most small organizations often did not prioritize cybersecurity as a business essential function, making them easy targets. This is not the case today. The explosive rise in data breaches and ransomware attacks becoming mainstays in the news cycle has led to SMBs slowly becoming wise to just how much of a priority cybersecurity has become.
As an MSP, clients must understand this need and be prepared for potential cyberattacks. If they are not, it could mean both a death sentence to your client’s business and possibly yours. A recent report by VIPRE Security found most businesses of 50 to 1,500 employees would close down following a ransomware attack.
Implementing a simple layered security approach could be the answer to this issue and provide clients with cybersecurity peace of mind. Layered Security uses multiple “layers” of cybersecurity solutions to detect and stop attacks from the virtual cornucopia of possible threat vectors available to threat actors. While many believe that a simple endpoint security solution is enough to protect a business from cybercrime, malicious actors will find other ways into a system. Coupling endpoint with an email security and network security solution could mean life or death for a business
3. They Don’t See the Value in Your Services
An MSP that is not cost-effective for a business can be a huge drain on their budget, especially if they don’t see the value you provide or you aren’t performing as well as they would like. If a business owner feels they are spending too much on IT solutions, they will most likely audit how much money of their budget goes towards managed services and compare it against the services they are currently receiving. They will search out just exactly what it is you are providing to them and if competitors offer similar or better options at a lower cost.
It should be your goal to consistently demonstrate the value of your services to a client. If you are handling the duties of an entire IT department, you should demonstrate the financial impact of your managed services business. Provide them cost analyses, show them threat reports of what cybersecurity dangers you’ve stopped, treat them with respect, and provide the best quality of service possible. They will see value not only in your services, but also in your business relationship.
When boiling these points down, it reduces to three simple points: quality, value, and preparation. The growth of the MSP market has made it seem like finding an MSP is easy and all managed services providers are alike. Regularly communicate value, ensure you are keeping your service promises, and protecting clients from a possible cyberattack. Doing these three simple things can give a business new life and create organizational longevity.