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Kaseya: How MSPs Can Improve Client Retention

Kaseya
07/07/2026
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It actually costs about three or four times more to acquire a new customer than to grow a current customer. And so to lose that customer, that's a big risk. And if the value isn't visible, clients start to question the cost. They start to question what they're investing in. So MSPs need to consistently show what they're doing to work on their customers' environments. No one can promise 100% security. And that is simply not realistic in today's threat landscape. What MSPs can do is they can strengthen their client's security posture, and they can ensure the right mitigation and recovery strategies are in place if something does happen. SMBs are actually one of the biggest targets for cyber attacks. And so if there's no backup or recovery strategy in place, a single incident can be absolutely devastating. Much more than half of SMBs that are successfully attacked simply do not recover. When businesses don't have a proper mitigation and recovery strategy in place, they are essentially gambling with their operations. It's a massive game of Russian roulette. There's a lot of things that SMBs ultimately care about, and pricing should really not have to come into the conversation if they're being delivered in a meaningful manner. So showing the improvements that they're making in security posture, they're showing the threats that have been mitigated, risk reduction measures and all kinds of recovery readiness. These are the metrics that ultimately demonstrate that the MSP is actively protecting their business and preparing for potential disruptions.

TL;DR

  • Client retention is more cost-effective than acquisition — losing a customer costs MSPs three to four times what it would take to win a new one.
  • Invisible IT work creates perceived value gaps; MSPs must proactively communicate what they are doing to protect client environments.
  • More than half of SMBs that suffer a successful cyberattack do not recover, making backup and recovery strategy a non-negotiable service component.

Summary

This short-form video from Kaseya addresses one of the most persistent challenges facing managed service providers: client retention. The core argument is that MSPs lose clients not because of poor technical performance, but because clients fail to perceive the value of what they are paying for. When security work happens invisibly in the background, clients begin to question costs and look elsewhere. The video emphasizes that acquiring a new customer costs three to four times more than retaining an existing one, making churn a serious financial threat to MSP business health. To counter this, MSPs are urged to consistently surface and communicate the work they perform — including security posture improvements, threats mitigated, risk reduction measures, and recovery readiness metrics. The video also underscores the severity of the SMB threat landscape, noting that more than half of small and mid-sized businesses that suffer a successful cyberattack never recover. By framing their services around these tangible outcomes and existential risks, MSPs can shift client conversations away from price and toward indispensable partnership.

Chapters

0:00 - Retention as Business Foundation
0:14 - The Invisible Value Problem
0:41 - SMB Cyber Risk Reality
1:04 - Communicating Value Through Metrics

Key Quotes

0:05 "It actually costs about three or four times more to acquire a new customer than to grow a current customer."
0:14 "If the value isn't visible, clients start to question the cost."
0:51 "Much more than half of SMBs that are successfully attacked simply do not recover."
1:02 "It's a massive game of Russian roulette."

FAQ

Why do MSP clients leave even when service quality is high?

Clients often leave because they cannot see the value of what they are paying for. If security and IT work happens invisibly, clients begin to question costs. MSPs need to consistently report on threats mitigated, risk reductions, and recovery readiness to make their value tangible.

What metrics should MSPs share with clients to demonstrate value?

The video recommends highlighting security posture improvements, threats that have been mitigated, risk reduction measures, and recovery readiness indicators. These metrics show clients that the MSP is actively protecting their business and preparing for potential disruptions.


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  • MSP client retention
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