IT Great Falls - The Hidden Traps: How Most MSPs Keep You Tied to Them

Introduction

In the world of Managed Service Providers (MSPs), customer retention is the name of the game. But have you ever wondered why it's so hard to break free from your MSP once you've signed up? It's not just about the quality of service; there are several tactics that MSPs employ to make sure you stay put. In this blog post, we'll delve into some of these strategies, backed by current information and insights from forums and comments.

The Illusion of Customization

One of the first things an MSP will do is offer you a customized Service Level Agreement (SLA). While this may seem like a tailored approach to meet your specific needs, it often serves as a trap. The more customized your services, the harder it is to compare them to other providers, making it less likely you'll make a switch.

Long-Term Contracts

Many MSPs require long-term commitments, often ranging from one to three years. These contracts can include hefty penalties for early termination, effectively locking you in. This practice has been a topic of discussion on Reddit, where users have expressed frustration over such long-term commitments.

IT Great Falls does not believe in long term contracts. Our agreements are for 30 days.

The Faceless Service Trap

With the advent of automation and Remote Monitoring and Management (RMM) platforms, MSPs can perform most tasks remotely. While this is efficient, it reduces face-to-face interactions, making it easier for clients to feel disconnected from their service providers. This lack of personal connection can make clients less likely to seek alternatives.

IT Great Falls intentionally reaches out to our clients on a regular basis with phone calls and on-site visits, especially when things are running right.

Reward Systems

MSPs often offer rewards and discounts to loyal customers. While this seems like a customer-friendly approach, it's another retention tactic. For example, you might earn points for interactions that can be redeemed for services or get bonuses for purchasing additional services.

The Feedback Loop

MSPs are keen on collecting customer feedback, not just for improvement but also for retention. By constantly asking for your opinion, they make you feel valued and heard, which psychologically makes it harder for you to leave.

The Cost of Switching

Switching MSPs isn't just about breaking a contract; it's about the time, effort, and financial resources needed to transition to a new provider. MSPs know this and often highlight the "costs" involved in making a switch, further discouraging you from taking that step.

With IT Great Falls, we work with your current provider to make as seamless transition as possible. If you don't currently have a provider, one thing we will not do, is force our equipment and services on you. We prefer you to own your equipment just in case you're not happy with us. However, we are more than happy to suggest equipment and services that will benefit your business, should you need it.

Conclusion

While MSPs offer valuable services, it's essential to be aware of the tactics they use to keep you as a customer. Always read the fine print, ask questions, and consider the long-term implications before signing on the dotted line.

Questions to Ponder

1. Are you aware of the terms and conditions of your MSP contract?

2. How much value do you place on face-to-face interactions with your service provider?

3. Are the rewards and discounts offered by your MSP making you overlook other potential options?

Sources:

MSP Customer Retention: 5 Best Practices to Reduce the Churn

Reddit discussion on MSP Vendor's requiring 1-, 2-, and 3-year commitments

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