Top Four Benefits of Client Retention

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Top Four Benefits of Client Retention

What do good car maintenance and customer nurturing have in common? They’re good for your wallet in the long run.

Regular car tune-ups can be a hassle. They take a little bit of time and costs a little bit of money. Some people don’t like to put in the effort. They don’t take their car to the shop when they hear that knock in the engine or the brakes squealing. They think the less time they spend at the mechanic, the more money they save.

But down the road, a neglected automobile is going to leave you stranded and looking for a new set of wheels–and a new car costs a bit more than an oil change. However, if you show your car some love, take it in for regular maintenance, it’ll take you where you want to go for a long time to come.

Customer Maintenance

The same philosophy applies to client retention. If you neglect your clients, there’s a good chance your relationship with them will break down the road. If you don’t do the little things to keep your clients loyal, they may opt for a new MSP when one catches their eye. And there you are, looking for another client–68 percent of clients leave because they feel the business is indifferent to them.

But why is client loyalty so important? Is it more valuable than new clients?

Less Burning on the Churning

Just like a poorly maintained car burns more oil, neglected clients burn more of your budget than you would spend nurturing your current base. Winning one new client can cost you 25 times more than retaining a current one.

Keeps Your Tank Full

A loyal customer keeps your recurring revenue tank full. Nurtured clients are more profitable – they purchase 90 percent more frequently and spend 60 percent more with each transaction. For MSPs, this means more cross-selling and upselling potential.

Word Travels

Loyal customers talk. Unsatisfied customers talk even more. Happy clients will trumpet your praises to an average of 9 other people, while those who feel neglected vent to approximately 22 people.

Loyal clients are a bounty of free, effortless advertising and referrals. And referrals work. About 85 percent of B2B decision-makers start the buying process after a referral.

Bears Bumps in the Road

You’re less likely to lose your muffler or blow a tire on a pothole if you keep your car in good condition with regular maintenance – just like clients.  If you do the right things to build and maintain a stable relationship after the sale, your clients will be more willing to try new products and services and stay with you when you hit a few bumps.

Say you launch a new service, but it still harbors a few bugs. Newcomers may leave you at the first sign of trouble, but a long-term customer with whom you’ve established trust is more willing to ride it out while you make repairs. Loyal customers are seven times more likely to try a new offering and five times more likely to forgive.

Your Final Destination

Just like a reliable vehicle, developing and maintaining customer loyalty takes ongoing work, but it’s worth it down the road.

Loyal clients stay with you, delivering recurring revenue, helping gain new business through referrals, and reducing churn and “maintenance” costs.

For a jump start on how to turn your current clients into loyal, long-term followers, download our e-book: MSP’s Quick-Start Guide to Building Client Loyalty.


  1. The Top Ten Benefits of Customer Retention, access, 2018
  2. The Power of Customer Retention (infographic), Time Doctor S
  3. 5 Stand-Out Benefits of Customer Retention, ForceManager, 2020
  4. 40 Customer Retention Statistics You Need to Know,, 2020