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5 Warning Signs Your Client Might Be Thinking About Leaving Your MSP

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Losing a client can have far-reaching consequences. Recognizing the warning signs early on is crucial for retaining clients. In this comprehensive guide, we'll delve into five critical indicators that your customer might be contemplating a departure.

1. Unexpected Shifts in Your Client's Team

The client's organizational structure plays a pivotal role in your relationship. The sudden departure of your primary client contact can be a disruptive signal. This transition not only alters the dynamics but also introduces uncertainties. 

Next Steps to Take:

Situations like this are not uncommon, it's essential to adopt a strategic approach.

  • First, compile a comprehensive summary highlighting your company's recent successes and current standing.
  • Next, strategically distribute this information to upper management, with a focus on decision-makers and financiers.
  • Finally, engage in open discussions about your company's achievements and work to dispel any notions that competitors might be better suited to provide services.

Your goal is to showcase your value and encourage a reconsideration of the impending changes. You need to answer the big question your client has, “What have you done for me lately?”

2. Multiple Concerns Are Being Raised

A client consistently raising concerns and reservations can be a significant red flag. Despite choosing your company, persistent doubts about your capabilities can jeopardize the relationship.

Next Steps to Take:

We can't stress this enough, AVOID being reactive. It's only natural to want to defend yourself and your work quality when multiple concerns are brought up without warning. Remember, clients aren't experts in managed services. They don't have the education or experience you do. It's why they hired you in the first place. The last thing you want to do is invalidate those feelings of concern or get overly defensive. Treating your clients that way won't help you keep their business in the long run. 

It's important to note that persistent questioning doesn't necessarily mean the client is preparing to leave. Take advantage of opportunities for face-to-face interactions to build trust and educate them a little bit. Present yourself as a trustworthy source of information, aligning your company's services with their needs. Effectively communicating that your collaboration will undoubtedly advance their company's goals can help dispel lingering doubts.

3. Invoices Are Unpaid

Unpaid invoices, especially from long-term clients, can be alarming. When previously consistent payments suddenly cease, it raises concerns about the client's financial stability or their commitment to your services.

Next Steps to Take:

Don't jump to conclusions just yet! Unpaid invoices may result from various factors, including misplaced or unreceived invoices, changes in the client's banking or payment providers, or transitions in the accounts payable department. Approach the situation professionally, inquire about the reasons for the delay, and take appropriate action to rectify the issue. Maintaining a professional demeanor while addressing payment concerns is crucial for preserving the client relationship.

4. Threat of Rivalry from Another MSP

Discovering that your client is exploring alternatives with a competitor can be disheartening. However, this threat can also present an opportunity for reassessment and improvement.

Next Steps to Take:

While it may feel like a loss of faith in your MSP, being asked to re-pitch for a client can be a positive development. This situation prompts a reevaluation of your approach to client care. Leverage your past accomplishments and unique insights into their company, demonstrating a deep understanding that your competitor lacks. 

5. Non Responsive 

Has your client gone dark? Silence from the client, especially after delivering a proposal or completion of deliverables, raises concerns about their commitment.

Next Steps to Take:

Your clients might be feeling overwhelmed or preoccupied, making it crucial to follow up consistently. Regular communication not only strengthens the relationship but also provides insights into when the client might be too busy to respond. Understanding the dynamics of their workload allows you to tailor your communication approach, ensuring that you remain present without becoming a source of additional stress.

While customer churn is an inevitable aspect of any business, proactively identifying and addressing warning signs can significantly mitigate the risk. Remember, client retention is not just about preventing departures; it's about fostering lasting partnerships that withstand challenges and promote mutual growth. Invest in maintaining robust client relationships. By staying vigilant and proactive, you position your MSP for sustained success.


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