The “Holy Grail” of being a successful MSP is steadily growing your recurring revenue base as a percentage of overall monthly billings. This means not only adding new customers or services but also not losing customers “voluntarily” i.e. they churn away, rather than “involuntary” when you as a business decide they are no longer a fit for your business model, and you proactively migrate them elsewhere.
This balance of acquiring new customers, cross selling, up selling along with managing churn is a metric known as Net Revenue Retention (NRR). To master the process is more than just customer care but starts with the entire product and customer journey being designed with NRR built into the business strategy and GTM.
McKinsey has mapped what it takes to be a successful B2B technology company with Best In Class NRR, which we think is an excellent framework and aligns with our practical experience with local vendors and MSPs. You can read the full article here.
Once you have read the article and you want to take the next step, contact Strategy & Change to assist you to grow your ARR and improve your NRR. This could be with an executive planning workshop, or a training program for B2B salespeople looking to improve their recuring revenue selling and business skills.
