Ch 4 - Customer success and retention
ScalePad Logo White
Chapter 4

Customer success
and retention:

MSPs prioritize client success basics, but may miss the bigger strategic picture
Many MSPs have formalized customer success initiatives in place to serve their clients. Even though they’ve ticked all the boxes, a third still expect to see 50% of their customers churn. However, MSPs that strategically leverage their tech stacks, teammates, and metrics to deliver an exceptional customer experience enjoy higher client satisfaction and retention rates.
Customer success planning

Formal customer success programs drive client satisfaction and growth

The vast majority of MSPs (74%) say they have a formal client success program, while larger MSPs are more likely to say they have one than their smaller counterparts. Nearly a quarter (22%) don’t have a program in place but want to implement one in the future, which suggests customer success is a priority for most MSPs.

Those with formalized success programs are more likely to be high performers in other areas, including higher CSAT scores, higher project growth rates, and higher overall revenue—meaning that client success initiatives can be tied to improved financial performance.

For MSPs that don’t have a formal success program, the top reasons are a lack of resources, internal knowledge, or competing priorities. Small MSPs are more likely to say it's due to lack of time or resources and slightly less likely to say it’s due to limited expertise or challenges with technology—suggesting they may have a vision for building a successful program but don’t feel they have the bandwidth to formalize it.

MSPs may lack solid definition of “customer success” programs

We define a customer success program as offering clients proactive, long-term technology strategies that will help them achieve larger business goals—not just their immediate IT needs.

While the majority of respondents say they have a formal program in place, their answers to later questions show they may be missing some key elements of a strategic success program.

  • Only half have dedicated account/customer success managers focused on client relationship-building
  • Less than a fifth offer vCIO/vCISO consulting services
  • A third don’t create formal roadmaps or budget forecasts for clients
  • Half of MSPs only meet with clients once a quarter (whereas high performers check in once a month)
  • Only a third track Net Promoter Score (NPS), which is critical to understanding customer sentiment

  • ”We’re really big on customer success. We increased monthly recurring revenue by 55% across the board on our renewals. I attribute that to our customer success framework and processes—and, obviously, having a very good service delivery and support desk.”

    Chris Murray
    VP of Operations
    Watchkeep

  • “Our customer success program is largely changing to take on more of a vCIO role as we grow and mature as an MSP. We ask where our client's business is going and how can we better support them—not only today but in 6 or 12 months—including what tools they’re using that they may not need anymore.”

    Kendra Schaber
    Client Services Manager
    Alt-Tech Inc.

MSPs track a few key client satisfaction metrics—but high performers get clear insights

CSAT, retention rate, and client referrals are the most common customer satisfaction metrics tracked by a little over half of respondents. 

MSPs with best-in-class CSAT scores are more likely to track customer effort score, SLA compliance rate, and NPS, demonstrating that a more in-depth approach to measuring the client experience can lead to improved satisfaction. Those with higher ARPU and recurring revenue are also more likely to track more client satisfaction metrics overall, tying an accurate picture of client satisfaction to better profitability.

Only about a third of MSPs (34%) track Net Promoter Score—a key indicator of a client’s desire to refer others to you. MSPs should track this metric so they can acquire new clients through referrals (instead of focusing solely on sales and marketing spending, like they plan to in 2025).

”We look at our CSAT scores pretty closely and we do the typical survey after a ticket. We show everybody the scoreboard, and we actively work to keep that in the upper range. We also do Net Promoter Scores that are just more general to look at the bigger picture. Maybe the client isn't really having their needs met, even though you might think they are because each little interaction went well.  We want to know that.”

Ann Westerheim
Founder & President
Ekaru

Dedicated customer success managers—and cross-team support— create better client experiences

A little over half of MSPs have dedicated customer success managers or account managers to own their customer success function. This was followed closely by technical roles and shared success or account managers. Since participants could choose multiple owners, it appears that most MSPs consider several roles to be responsible for customer success.

MSPs with high staff utilization, client retention rates, and CSAT scores are more likely to say leadership is an owner of customer success—meaning that executive involvement in success programs can drive service efficiency and reduce client churn.

Nearly half (49%) of those in technical roles see themselves as responsible for customer success. However, those in customer-facing roles are much less likely to say that technical roles are co-owners of customer success. This could be chalked up to a lack of shared understanding of what responsibility of this function means, or it could indicate that customer-facing roles don’t feel that technical team members are contributing as much to client success initiatives.

High CSAT performers are more likely to have dedicated roles owning their success programs. But they’re also more likely to say their leadership and technicians are responsible, too—showing that a cross-company commitment to client success can boost satisfaction.

Client engagement

MSPs focus on client communication to drive success—and overlook the most impactful program

MSPs appear to use a number of tactics to drive customer success. The most common ones are regular business reviews (54%), regular feedback sessions or loops (50%), and strategic consulting services (49%). vCIO/vCISO programs are the least common (24%).

Top-earning MSPs are more likely to offer a vCIO/vCISO program than average, indicating that a more holistic, strategic approach to client engagement can increase revenue. Those with higher projected growth rates are also more likely to have a vCIO/vCISO program in place as well as educational resources for clients—suggesting that customer education can help scale future growth.

Those with the highest CSAT, retention rates, and staff utilization rates are more likely to prioritize regular feedback sessions or loops with their customers, so MSPs shouldn’t discount how consistently soliciting client insights can improve not only the client experience but your team’s ability to more efficiently serve them.

Smaller MSPs are less likely to offer formal roadmaps, onboarding, education, and/or vCIO/vCISO programs to their clients, which could put them at a disadvantage in terms of driving customer success. However, when we look at small MSPs with the highest revenue, they’re much more likely to have a vCIO/vCISO program, suggesting that this type of investment may have a more immediate impact than other initiatives. Larger, high-revenue MSPs are more likely to have more initiatives in place, including formal onboarding, technology roadmaps, and a vCIO/vCISO program.

24%

Of MSPs offer vCIO/vCISO programs—even though they’re associated with higher client satisfaction and revenue.

  • “vCIO is a paid service, and clients don't necessarily have the budget for it, so we don't have a ton of them that are actively using vCIO right now. But as our team gains time because of some changes as we move to the cloud, vCIO is going to become more available as an option.”

    Kendra Schaber
    Client Services Manager
    Alt-Tech Inc.

  • “We do use roadmaps a lot because we don't want to intimidate people with an overwhelming list of “to dos”. We try to meet people where they're at and then talk about a roadmap. There might be a budgetary issue that they might not want to talk about. So I found talking about a road map just takes that pressure off and we never want somebody to be put on the spot.”

    Ann Westerheim
    Founder & President
    Ekaru

MSPs feel client onboarding is their strong suit, but small MSPs struggle to define their process

Nearly half (48%) of MSPs rate their client onboarding process as good, while 38% consider themselves excellent at it. Very few (13%) consider it fair.

Unsurprisingly, those with higher CSAT scores are more likely to have an excellent rating, implying that starting relationships off on the right foot can provide a halo effect for overall client satisfaction. Those with high staff utilization rates are also slightly more likely to have excellent onboarding, suggesting that thoughtfully setting clients up for success early can potentially improve staff productivity down the line.

Results are the same across MSPs of every size, suggesting that large and small businesses pay special attention to client kick-offs. However, small MSPs are less likely to have formal onboarding mapped out, and even high-revenue earners are more likely to only rate their onboarding as good instead of excellent. This suggests small MSPs may want to invest more in formalizing their onboarding practices so they can drive positive client outcomes from the start and punch above their weight.

  • “One of the things we find when onboarding new clients is that there are lots of things even they don't know. So MSPs may not be giving themselves ‘good’ scores because they tend to find so many things once they actually get into the client's environment.”

    Kendra Schaber
    Client Services Manager
    Alt-Tech Inc.

  • “ There's always something you’ll learn about the environment later. It may not need to be addressed right away or it may not be obvious. But we might also discover something that we think is a giant risk. Then we're putting all of our tools in place, getting our reporting going, and getting our documentation done to finish onboarding and address the problem.”

    Ann Westerheim
    Founder & President
    Ekaru

Formal client roadmaps are common and expected by large MSP clients

The majority (68%) of MSPs offer formal roadmaps and budget forecasts to their clients. Nearly a third (27%) say they have internal roadmaps that they don’t necessarily show clients to guide their planning, while only 5% don’t produce any at all. Those with high CSAT scores are more likely to offer formal, customer-facing roadmaps, meaning that seeing a future-based, big-picture IT plan is important for driving client satisfaction.

Smaller MSPs are more likely to not have any roadmaps, while larger MSPs are much more likely to have client-facing plans and forecasts. When looking at revenue high-performers, both large and medium-sized MSPs are more likely to have customer-facing roadmaps and budgets, while small high-earners are more likely to have informal plans than none at all. This suggests that clients may expect formal roadmaps from larger MSPs but be ok without seeing them when working with smaller MSPs.

MSPs may need cross-functional alignment on roadmaps

Interestingly, IT/technical team members and customer-facing roles (success managers and account managers) are less likely to say their MSP offers formal roadmaps to clients than other groups. If managers and executives want to improve client service, they may want to ensure that all levels of the organization have a clear vision for long-term customer planning and growth.

“We have internal goals for all of our clients. We strategically push those out based on our support hours being spent and what we know of our client's budget. So, while we roadmap for our clients, we work with them strategically to go with what makes the most sense—and what their budget can handle.”

Kendra Schaber
Client Services Manager
Alt-Tech Inc.

Quarterly business reviews are standard for MSP clients—but some high performers meet more frequently

Nearly half (49%) of survey respondents conduct client business review meetings quarterly. A little over a third (35%) do monthly meetings, while a small amount (16%) do fewer or only meet upon client request.

Does having more customer touchpoints impact client satisfaction? Those best-in-class CSAT scores, the highest project growth rates, and small, high-earning MSPs are more likely to conduct monthly reviews, suggesting that more frequent meetings can make sense, depending on the needs of the client and an MSP’s business model.

  • “We have a defined process of how we manage our customers based on size, and we schedule our QBRs based on these different client segments. Then we figure out how many business reviews make sense and what that business review should look like. We always put the customer at the center of everything.”

    Chris Murray
    VP of Operations
    Watchkeep

  • “ We have a defined process of how we manage our customers based on size, service type and spend. We schedule our QBRs based on these different client segments, frequency of reviews or touchpoints and what that business review should include. We always put the customer at the center of everything.”

    Kendra Schaber
    Client Services Manager
    Alt-Tech Inc.

More data is better when it comes to showing clients value

When asked what metrics MSPs share with clients to show them the value of their work, the most popular data points are project updates, software insights, and proactive monitoring reports. Hardware or infrastructure lifecycle data, ticket insights, and threat remediation are the least popular metrics to show clients.

MSPs with the highest CSAT, retention rates, and staff utilization rates are more likely to show their clients ticket insights and hardware or infrastructure lifecycle data, as well as other metrics. This suggests that tracking and sharing more insights overall can help clients see more value—and allow staff to focus their efforts more wisely.

Individual technical roles may have a different approach to client engagement than their managers

Those in technical execution roles are more likely to say they only meet with clients once a quarter or upon request compared to technical management roles. They’re also less likely to focus on sharing hardware or infrastructure lifecycle data and ticket insights with clients, and they’re less likely to say they have roadmaps to show clients. Since technical teams play a key role in driving customer satisfaction, MSPs should ensure every level of their organization has a clear, shared vision of how they plan to engage clients and deliver value.

Customer-facing roles have a different view of client success

Customer success managers and account managers see their client success initiatives in a harsher light than their technical and executive counterparts. MSPs should investigate this lack of alignment so they can better understand how to improve the customer experience (from the team members who are closest to clients).

Customer success managers and account managers are:

  • Slightly more likely to say don’t have a formal customer success program—and more likely to say they don’t have one because of competing priorities or a lack of buy-in
  • Less likely to say they track CSAT and NPS metrics—and more likely to say their CSAT scores are average
  • Less likely to say they have formal client roadmaps or renewal strategies in place
  • Less likely to say they’re ‘excellent’ at showing clients the value of their work

”We view it as our clients are paying us for a service. We need to make sure that they understand the value in that service. So when I meet with a client, we're talking about the issues that they're seeing. We want to show them that everything that we've said we're going to do, we are doing. If they want to filter that information on their side, that's totally their choice, but getting it in their hands is a trust builder.”

Kendra Schaber
Client Services Manager
Alt-Tech Inc.

Satisfaction and retention

High CSAT scores tied to higher revenue, client retention, and staff productivity

Over 40% of MSPs report their customer satisfaction (CSAT) scores are above average, while just 15% have best-in-class scores.

Those with the highest CSAT scores are slightly more likely to have higher annual revenue and recurring revenue rates than average. They’re also more likely to be projecting growth rates of 51%+ for the year ahead—showing that client satisfaction can impact the bottom line. High CSAT scorers are also more likely to have higher client retention rates and staff utilization rates, both of which help a business remain more efficient and profitable.

But what are high-scoring MSPs doing differently?
There are a few areas they tend to excel in:

Formalizing customer success initiatives and ownership.

They’re more likely to have a formal customer success program, high-quality onboarding, and recurring touch-bases with clients. They’re also more likely to have dedicated customer success managers, account managers, and/or a vCIO/vCISO roles in place who are responsible for their customer success initiatives—which allows them to deliver superior results to clients.

Offering a breadth of services to clients.

Those with higher scores tend to offer more services overall—including less common services, like disaster recovery, productivity management, and Internet of Things (IoT)—to their clients. This suggests that when MSPs act as a one-stop shop for their clients, they can expect more satisfaction.

Using a variety of technology to support customers.

High CSAT scorers are more likely to have 15+ apps in their tech stack, including virtual CIO software, documentation software, and business intelligence and reporting tools. They’re also more likely to use AI for ticket management, and slightly more likely to use it for a variety of technical and non-technical task automation than average. This suggests that leveraging more technology can help MSPs create superior client experiences at scale.

Tracking more client-centric metrics.

High scorers are more likely to track two metrics related to the client experience—SLA compliance rate and Net Promoter Score (NPS)—than average performers. They’re also more likely to share additional insights with their clients (like hardware/infrastructure lifecycle data and security breach details) and rate their ability to show clients value as ‘excellent’—implying that more expansive data tracking has a role to play in enhancing client satisfaction.

Taking a consultative approach to client success.

Those with best-in-class CSAT are more likely to offer formal roadmaps and budget forecasts to guide clients. They’re more likely to have monthly review meetings with clients (vs. quarterly, the most common timeframe) and have formal retention, upsell, and cross-sell strategies in place. It appears that building a long-term vision for client growth and expansion can drive more satisfaction than technical support and delivery alone.

In summary, high CSAT scorers take a strategic approach to customer success and, ultimately, become consultative partners to their clients. And they leverage a variety of services, solutions, and metrics to deliver exceptional customer experiences.

Those with best-in-class CSAT scores are more likely to:

  • Have a formal customer success program and client renewal strategies in place
  • Have dedicated customer success managers, account managers, and vCIO/vCISO roles
  • Offer more services (including less common services) to their clients
  • Leverage more solutions and artificial intelligence for task automation
  • Create formal roadmaps and meet with clients monthly to review them
  • Rate their onboarding process and client reporting as ‘excellent’

  • “I look at CSAT in two ways. First, I obviously look at the score itself. The second thing I look at is the response rate. I think a 22% response rate is the industry average. We're at 49%, which tells me that my customers are engaged, and I have a 98% CSAT rating as well. I'm extremely proud of how engaged my customers are with the business.”

    Chris Murray
    VP of Operations
    Watchkeep

  • “I think CSAT numbers are a misnomer. If you do 500 tickets a month but have a 3% response rate, your CSAT scores aren’t statistically valid and you didn’t succeed, even if you got 100% satisfaction on them. Of all the CSAT scores we get, I’d say about 40% add comments, which is uncommonly high. But they're actually saying what they think and that sentiment is more useful than a score.”

    Matthew Bookspan
    CEO
    Blacktip

Technical complexity, slow service, and high costs negatively impact client satisfaction

When those with average or poor CSAT are asked what was preventing them from improving client satisfaction, the top response was the increasing complexity of client requests—meaning teams may need more technical proficiency to better serve clients.

The other top impediments to higher CSAT are slow response times and clients feeling costs are too high. MSPs should explore ways to scale ticket management and staff efficiency without raising costs. Better tracking staff utilization and using AI to streamline workflows should be priorities for low performers.

A third of MSPs struggle with client churn

About a third of MSPs (36%) have customer retention rates below 50%—meaning they have to replace half of their clients annually. This may explain why more MSPs are investing in more sales and marketing hires in 2025. However, since acquiring new customers can be expensive and resource-intensive, MSPs could perform better financially by focusing on improving client retention.

Nearly a third (29%) of respondents had retention rates of 76%+ (which is considered high performance). Those with the highest revenue and ARPU are more likely to have retention rates above 50%, implying that maintaining long-term client relationships is key to profitability.

But what drives better client retention? Those with the highest CSAT scores and staff utilization rates are more likely to report retention rates in the 76+% range—suggesting that a formalized client service strategy and highly productive staff can foster long-term customer relationships.

Those with best-in-class customer retention rates are also more likely to track more service-focused operational metrics (including ticket volume, average first response time, average resolution time, service uptime, and mean time and between failures), which suggests having a more in-depth view of the client experience can help drive long-term relationships.

Those with best-in-class customer retention rates are more likely to track the following metrics—suggesting a holistic view of client service can drive long-term relationships.

Ticket
Volume
Average First
Response Time
Average
Resolution Time
Mean Time and Between Failures (MTBF)
Service
Uptime

Executives are more likely to report having best-in-class retention rates than other groups—meaning they may have an overly positive outlook or have access to customer data their employees don’t. They should seek alignment with client-facing teams so everyone is focused on the right areas of the business.

“After five years with Alt-Tech, I still have 95% of the clients that I started with. I think that's from the partnership, communication, candidness, and transparency we bring. We’re always getting in front of our clients to meet with them. We don’t hide behind a screen, which I think is a big differentiator.”

Kendra Schaber
Client Services Manager
Alt-Tech Inc.

MSPs focus on retention efforts; Only half have client expansion initiatives

The majority of MSPs (73%) have specific strategies to drive client contract renewals, but only a little over half (52%) have implemented specific upsell or cross-sell strategies. MSPs with the best CSAT scores are more likely to have both formal renewal strategies and upsell/cross-sell strategies in place for their clients—suggesting that pitching clients on how you can better serve them with more offerings can lead to improved satisfaction.

Small MSPs are slightly less likely to have formal renewal programs in place, and more likely to have no formal programs for client expansion or growth. These may be areas for them to explore so they can retain clients and continuously grow instead of chasing new customers (which can be costly and resource-intensive).

73% of MSPs have strategies for driving contract renewals—but only 52% have upsell or cross-sell strategies, even though both are tied to higher client satisfaction.

ScalePad Logo White
linkedin iconYoutube IconTwitter IconFacebook Icon

ScalePad creates software that helps IT managed service providers work more effectively, both internally and with their clients. From wrangling hardware and software assets to monitoring vital backups and compliance frameworks, our platforms give MSPs the tools they need to succeed.

menuchevron-down