Wes SpencerCo-Founder, Empath · Co-Founder of Empath | Recovering Cybersecurity Guy| Keynote Speaker | 2020 Cyber Educator of the Year | Building the MSP Workforce Operating System

Mastering Attrition Rates for #MSP #Revenue Growth

12 Oct 2024 · 1 min

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In this segment, the speaker urges Managed Service Providers (MSPs) to annually measure their client attrition rate, compare it to industry standards, and implement a structured, objective forecasting system rather than relying on subjective impressions. He argues that without a clear, executive‑level view of planned attrition, MSPs cannot accurately determine whether they are prepared to invest in scaling their revenue‑generating engine.

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So the next thing, what is your overall attrition rate? You've gotta ask yourself annually, what is my attrition rate? Is it in line with the industry? Is it super low or is it super high? Do you have a mechanism for how you forecast attrition in the business that is truly structured, not subjective? A lot of small MSPs go, yeah, I think our clients really like us, or hey, this one's really noisy, I'm not really sure. But they don't have a way to objectively at an executive level look at what attrition is planned in your base of business. This is a great answer to the question of, are you ready to add fuel to your revenue-generating engine in your—