How To Identify And Attract High-Value Clients For Your MSP

As an MSP owner or sales and marketing professional, one thing is absolutely true: the success of your business rises and falls on the quality of the clients you serve. If you’re working with customers who undervalue IT, refuse to take your advice, or are just downright cheap, you’re going to have a tough time growing your business, not to mention maintaining the profits you deserve.

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So, let’s talk about a crucial concept for your MSP’s success: High-Value Clients (HVCs).

Why You Must Focus On High-Value Clients

When most MSPs start their business, the goal is simple: make money. You take whatever work comes your way, often calling it being “scrappy.” But here’s the deal: if you continue to be scrappy forever, chasing every dollar, you’ll end up with a business that’s unscalable and inefficient. To truly mature and grow your MSP, you need to focus on attracting, keeping, and developing High-Value Clients.

And let me be clear: an HVC is not just a client that pays you a lot of money. While revenue is important, profitability, scalability, and the relationship you have with the client matter even more. Here’s a checklist to help you identify who your HVCs are.

What Makes A High-Value Client?

1. Profitability Over Revenue: Don’t confuse a big-ticket client with a profitable one. You might feel good about landing a major account that generates significant revenue, but if that client is consuming all of your time and resources with minimal profit, they’re not as valuable as you think. High-Value Clients deliver profit, not just revenue. I often see MSPs shocked to learn that some of their biggest clients are actually their least profitable. Conversely, those mid-tier clients, the ones you might overlook, are sometimes your most profitable.
2. They Don’t Perceive Your Services As Expensive: We’ve all had those clients who complain about cost, acting as if they’re paying you a premium when, in reality, their IT spend isn’t that high. These clients aren’t HVCs. A High-Value Client understands the value of your services and doesn’t view what they’re spending as an overreach. That doesn’t mean they don’t expect ROI or excellent service, but they don’t treat every invoice like it’s a painful expense.
3. They Are Growing: High-Value Clients are in a state of growth. As they expand, whether by adding more employees, locations, or complexity in their operations, their IT needs will also grow. This expansion leads to more opportunities for you to provide value, cement your role as a trusted advisor, and ultimately increase your profits.
4. They Fit Your Tech Stack: Don’t chase shiny objects. When you’re constantly taking on clients outside of your core competency, you dilute your effectiveness. An HVC fits seamlessly into your tech stack, aligning with what you do best. These clients allow you to scale efficiently because you’re not having to constantly reinvent the wheel to meet their needs.
5. They Listen To Your Advice: The best clients are those who trust your expertise. They listen to your advice, take it seriously, and act on it. If they’re always questioning your recommendations or refusing to follow through, they’re dragging your business down, not helping it grow.
6. They Pay On Time: High-Value Clients respect your time and the value of your services by paying their invoices on time. No chasing, no excuses, just prompt and consistent payments.
7. They’re A Gateway To More Clients: Some of the best HVCs are natural connectors. Take CPA firms, for example. They’re not only outsourcing their IT but also refer other businesses in their network to your services. Having HVCs who serve as a gateway to other opportunities is a game-changer.

How To Grow Your Base Of High-Value Clients

If you want to build a business centered around HVCs, you need to constantly evaluate your client base. Every six months, take a hard look at who your HVCs are, who could become an HVC with a little development, and who is dragging your business down.

Here’s how to manage your clients:

• Top 20% HVCs: Ensure they are well taken care of. These are your most profitable clients, so make sure you’re nurturing the relationship.
• Middle 60-70%: With proper account management and education, many of these clients can become HVCs. Focus on developing them.
• Bottom 10-20%: You need to either fire these clients or set clear boundaries. If they’re not willing to pay more or follow your lead, they shouldn’t be your clients.

The Road Ahead

In today’s MSP landscape, focusing on attracting and retaining HVCs is more important than ever. Between increased competition, tighter budgets, and economic uncertainties, only those MSPs who hone in on profitability and client fit will continue to thrive.

If you’re ready to take the next step, we’ve just released a new special report called the Election Year MSP Market Forecast. It’s packed with insights on economic and profitability trends that every MSP should be paying attention to. You’ll also learn actionable strategies to continue attracting and growing your base of High-Value Clients, even during these uncertain times.

Join Us For Our MSP Marketing Roadshow To Achieve MORE Revenue And MORE Profits With FEWER Clients And LESS Work