With the Coronavirus crisis, one of the major challenges faced by businesses is generating new leads. Businesses world over are having a tough time expanding their client base. However, at this moment, the most important thing you can do is make sure you hold onto your existing clients. Here are some benefits of client retention.

It is cheaper than acquiring new clients

Retaining existing clients is definitely cheaper than acquiring new ones. The marketing costs associated with getting a new client is around 80% higher than the marketing spent on existing clients.

They are good for your brand

When you talk to new leads they will want to know how many clients you serve and for how long you have been working with them. If you have a lot of client turnover, then it doesn’t send a good message out to the market about your brand.

They can help you grow your business

Existing clients are good lead sources. Referral leads are generally easier to close, as the trust factor is higher. When someone you know refers you to a vendor, you are more likely to do business with them.

Existing customers can also bring in new business opportunities

Existing clients present a lot of cross-selling and up-selling opportunities. For example, if you are offering cybersecurity services to a client, you could pitch your VoIP services to them at a later date when they are looking for a more efficient alternative to their traditional phone system.

A lot of businesses place immense importance on getting new leads, adding new clients. They go to any lengths to sign up one new customer, but make the rookie mistake of taking their existing clients for granted. High client-retention index is not a good-to-have, but a must-have factor for a successful MSP business, and can be easily achieved with the right combination of quality customer service, marketing content, and communication.