
Episode #58
Melissa Hockenberry Reveals Why Client Retention Starts Inside Your MSP
Send us Fan Mail Welcome to MSP Mastery Podcast, the podcast for MSP owners and leaders who want to build a better MSP, one that actually works for them. I am Jeni Clift, joined by my husband and long time business partner, Nick Clift. Together, we unpack what is really working in thriving MSPs, including insights from the trusted partners and peers who support them. In this episode, we welcome back Melissa Hockenberry , a client retention and customer success expert who helps MSPs build stronger client relationships and lasting business value. With a background in marketing and more than 20 years of experience at Autotask, Melissa now leads First Things First Training and Consulting. She brings deep industry knowledge and practical experience to one of the most important challenges facing MSPs: how to retain clients, support employees and build a more profitable business. Melissa shares why client retention often begins by looking internally at your own team. We explore the connection between employee experience and customer experience, and why there is no hope for external retention if internal employee retention has not been addressed. We also discuss the conversations MSP owners often avoid, from billing problems and unclear expectations to difficult client relationships and unprofitable service agreements. As Melissa says, the moment you think you do not want to have a conversation is often the very conversation you need to have. Nick shares lessons from running an MSP, including what happened after losing a client worth half of the companyβs revenue. Together, we explore why a large client is not always a profitable client and why MSP owners need to understand the true cost of delivering their services. Here is what we covered together: β Finding friction in the client experience: How MSP owners can use the swim goggles analogy to look beneath the surface of their business and identify the issues clients may be experiencing. β Billing and invoicing problems: Why incorrect invoices quickly damage trust and how simple billing mistakes can create unnecessary friction. β The mystery shopper test: Why MSPs should ask someone who does not understand technology to review their invoices and explain whether they make sense. β Clearer client expectations: Why contracts can be silent and how a simple user manual can help clients understand the services they receive. β The difficult conversations: Why putting off an uncomfortable conversation can make the problem worse and why MSP owners need to eat the frog. β Taking action before everything is perfect: How perfectionism can prevent progress and why testing improvements with a small group of trusted clients can be more effective than waiting for the perfect process. β Empowering teams to fix problems: Why staff should have the authority to resolve small billing issues without creating unnecessary escalation or client frustration. β Making better service decisions: Why MSP teams need to consider the cost of labour before spending hours repairing equipment that could be replaced more efficiently. β Hiring for client success: The relationship building, listening, diplomacy and collaboration skills that matter most in a client success role. β Looking beyond the technology industry: Why the right client success person may come from retail, banking, hospitality or another customer focused environment. β Keeping client success separate from sales: Why client success should focus on long term relationships rather than being driven by a sales quota. β Finding the right person inside your MSP: Why the team member who spends extra time listening, coaching and training clients may already have the skills needed for client success. β Protecting the purpose of a new role: Why MSP leaders need to prevent every unfinished task from being placed on the client success manager. β Understanding the roles of CSMs and TAMs: How client success managers, technical account managers and business technology advisors can work together within an MSP. β Knowing the true profitability of each client: Why revenue does not equal profit and why MSPs need to track all the time involved in supporting a client. β Learning from a whale client: How losing a major client can reveal that the relationship was consuming resources and producing less profit than expected. β Improving time tracking: Why tracking time across technical, account management and leadership activities is essential for making good business decisions. β Giving your team the why: Why employees are more likely to follow a process when leaders explain the reason behind it rather than simply issuing instructions. β Internal retention before external retention: Why a strong client experience depends on creating a healthy and authentic employee experience. β Leadership through transparency: How transparency, integrity, humility and authenticity can strengthen relationships with both employees and clients. β Sharing difficult information with your team: Why withholding information can lead people to create their own explanations and spread unnecessary rumours. β Building trust during change: How honest communication during the loss of a major client can help a team stay calm, focused and aligned. β Consistency across every relationship: Why the same values should guide the way an MSP treats its employees, clients and suppliers. We created this podcast to share the real conversations and lessons we wish we had more of while running our own MSP, with practical insights from people who understand the challenges of this industry. Connect with Melissa Hockenberry on LinkedIn: Melissa Hockenberry Read more episode notes here: mspmastery.blog Watch on YouTube: youtube.com/@MSPMastery Listen on YouTube: youtube.com/@MSPMasteryAudio Listen on Spotify: open.spotify.com/show/4gftErFYrR8F80kthgvFbs Listen on Apple Podcasts: podcasts.apple.com/us/podcast/msp-mastery-ctrl-alt-deliver/id1828105793

