Churn kills revenue growth
Churn is evil. Have we mentioned that? Yeah, churn is a horrible, awful, terrible thing. Every revenue dollar you lose in churn, you have to make up for with sales. I guess if you’re a sales savant, that’s not a big deal, but for the rest of us, churn is something to be avoided at all costs. In our recent Global MSP Benchmark Survey, we found that 80% of MSPs with annual churn rates under 5% saw increased revenues last year. Among MSPs with annual churn of over 10%, only 40% recorded an increase in revenues. The lesson: if increasing revenues is your thing, you need to eliminate churn.
So why do customers leave? If you sold them on price, and someone undercuts you, then they will leave, unless you can find a reason to convince them to stay. Which is probably going to be cutting your prices. This is why we recommend against competing on price, and instead advise competing on the value that you bring to your clients.
There are a lot of things you can do to bring value – great service, hitting your SLAs, maximizing their uptime, and those are just some of the obvious ones. You already know how to do that stuff. Something we can help you with, however, is creating a higher level of stickiness. Why you? Because your clients cannot afford to run their businesses without you. The key to stickiness is to be indispensable. The value you bring is giving your clients a reason to stay. Stickiness gives them a reason not to leave, a subtle but important difference.
MyGlue is Sticky
MyGlue can play an important role in creating stickiness with your clients. Here’s how. Your clients manage their passwords somehow – probably a lot of different ways ranging from almost secure to incomprehensibly foolish. Offering them a secure password vault that you will manage will help them solve that problem. But here’s the kicker. The vast majority of password apps are not proprietary. Your clients can switch IT providers and keep those apps. That’s not the case with MyGlue. If you have your clients using MyGlue, then they need to stay with you, or else rebuild their entire password setup from scratch. That, and all of their other documentation.
So why would your client switch to MyGlue? Security, for one. MyGlue is SOC 2 compliant, which means it’s more secure than most other password apps. Functionality is another reason. MyGlue gives you process documentation (and much more, should you choose to avail yourself). Compare this power with an app that can really only do passwords, and it’s a no-brainer.
We’ve got your back
When you sign up for MyGlue, we’ll send you an Action Pack that’s full of information about how MyGlue helps your clients, and videos to help your clients learn how to get the most out of MyGlue. Once you’ve got your clients set up, you are providing them more value than you provided them with before, and they’ll love that. And because MyGlue is channel-only, it provides you with an opportunity to increase your stickiness, something that other password managers simply cannot give you.
To learn more about MyGlue, set up a time and we’ll walk you through it.