Let’s get something straight: if you’ve been in business for any length of time, you’re going to lose clients. It happens. And when the client you lose is a large one—maybe even one that made up a significant chunk of your monthly recurring revenue—it can feel like a sucker punch to the gut.
But here’s the truth: the way you respond to that loss is what determines whether your business backslides or explodes forward.
Don’t Panic—Analyze
The very first step is to find out why they left. Was it a competitor? A price issue? A service hiccup? Or was it something completely out of your control like budget cuts or a leadership change on their end?
If the problem is internal, fix it immediately. Don’t rationalize or make excuses. If you dropped the ball on service or ignored a client’s concerns until it was too late, own it and implement a system to prevent it from happening again. This isn’t about blame—it’s about tightening the screws so your ship is watertight.
But if the reason they left wasn’t your fault, let it go. That doesn’t mean you ignore it. It means you don’t waste energy wallowing in things you couldn’t have prevented.
Immediately Shift Into Sales Mode
When a big client walks out the door, it should automatically trigger an all-hands-on-deck sales push.
Go back to your dormant leads—those proposals that never got signed, the conversations that fizzled out, the tire-kickers who ghosted you. You know the ones. Reignite those opportunities now. These people already know who you are, and many times they just needed the right timing or a better offer.
This is where having a clear, compelling MSP marketing strategy pays off. You should always have an arsenal of campaigns ready to go. If you don’t, that’s your homework.
Don’t wait to replace lost revenue. Replace it before it hurts.
Mine Your Current Client Base For Gold
Upselling and cross-selling are the fastest ways to recover revenue. Most MSPs are sitting on thousands of dollars in untapped monthly recurring revenue simply because they’re not proactively managing their accounts.
Go through your client list. Who’s not on your managed security stack? Who still hasn’t adopted cloud backups? Who could use VoIP or compliance help?
Use your QBRs strategically—don’t just treat them as a checklist of services rendered. Use them to sell the vision of growth and stability. If you’re not already doing strategic planning with your clients, now’s the time to start. It’s a great way to boost MSP profitability while also deepening client relationships.
If you don’t have a process for how to do this, check out this guide to packaging and pricing MSP services—you need to have offers that actually sell themselves.
Double Down On Marketing
Now is not the time to cut your marketing budget. In fact, if you’re serious about growth, you’ll use this loss as a reason to ramp things up.
Focus on client acquisition for MSPs. Fire up your email marketing. Launch a few targeted PPC campaigns or LinkedIn outreach pushes. Run a limited-time offer or a “new client onboarding special.” Get loud.
And if you’re not already doing regular content marketing, webinars, or videos to position yourself as the authority, you’re behind the curve. These activities build long-term brand equity that pays off in good times and bad.
Follow Up With The Lost Client In Six Months
Here’s a power move most MSPs miss: circle back with the client who left after about six months. Keep that relationship warm. Circumstances change—people get promoted, budgets get unlocked, and new IT challenges arise.
The key is to exit gracefully and leave the door open. I’ve seen plenty of former clients boomerang back when they realize that cheaper doesn’t mean better—or when their new provider overpromises and underdelivers.
Losing A Client Shouldn’t Break You—It Should Build You
If losing one client significantly cripples your business, you have a bigger issue than just that one lost account. It means your business isn’t diverse or resilient enough. Use this moment to fix that.
Strengthen your marketing. Tighten up your service delivery. Nail down your sales processes. Expand your offerings. Focus on being a company where clients want to stay and where new prospects can’t wait to sign.
