How to Increase Your MSP’s Monthly Recurring Revenue (MRR) Without Adding New Clients
Monthly recurring revenue (MRR) is the lifeblood of any subscription or service-based business. After all, what good is acquiring new customers if they're not going to stick around? Increasing your MRR, then, should be a top priority for MSPs. But how can you do that without adding new clients?
The answer lies in two words: customer retention. Keeping the customers you have is just as important as acquiring new ones, and it's often easier and less expensive to do. Here are a few tips on how you can increase your MRR by retaining your existing customers.
Increase Your Prices (Gradually)
Before you start arbitrarily raising prices, it's important to do your research. Look at what your competitors are charging for similar services. You don't want to price yourself out of the market, but you also don't want to leave money on the table. Once you have a good idea of what the going rate is, you can start to formulate a plan for how to increase your prices.
Once you've decided how much you want to increase your prices by, it's important to do so gradually. If you raise your prices too much too fast, you're likely to lose clients. Instead, increase your prices incrementally over time. That way, your clients will get used to paying a little bit more each month, and they'll be less likely to balk at a larger price increase down the road.
Develop an Upselling and Cross-Selling Strategy
Upselling is when you encourage your customer to buy a more expensive version of what they're already using. On the contrary, cross-selling is when you sell them complementary products or services.
By offering these additional services to your existing clients, you can boost your MRR without acquiring new customers or breaking a sweat.
Add Value
When you're increasing your prices, it's important to add value for your clients as well.
One of the best ways to keep your customers happy (and prevent them from canceling their support agreement) is to offer them great service. That might mean offering more support, being more responsive to customer inquiries, or providing additional features or resources that they find valuable.
If you can show them that they're getting more for their money—whether that's in the form of a higher support tier or something else—they'll be more likely to stay with you even as your prices go up.
Increase Tech Utilization
While the previous tips we covered were focused on ways you can bring more money into the business, you can also improve your MRR by reducing overhead.
ServiceTree AUTO is a Chrome extension for ConnectWise designed to improve your tech utilization and bring more value to your high tier customers through the use of automated ticket dispatching and prioritization. ServiceTree saves techs time and helps them work more efficiently.
Increasing your monthly recurring revenue doesn't have to be difficult—or require acquiring new clients. By focusing on customer retention and offering additional services to your existing clients, you can give your MRR a much-needed boost without any extra work. So what are you waiting for? Put these tips into action today and watch your MRR grow!
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