What is the True Cost of Customer Loss?

Hint: It’s a lot more than you might think. 

Improve Customer Retention with IT Glue

The cost of customer loss extends far beyond lost MRR. It causes a ripple effect throughout an organisation, negatively impacting cash flow, time, and resource optimisation. By understanding the four key pillars of effective customer retention, you can mitigate the significant impact customer turnover has on your business.

The Four Costs of Customer Loss

The true cost of customer loss is made up of four key cost factors: direct costs, acquisition costs, social costs, and operational costs.

Direct Costs

Direct costs encompass the impact a lost customer has on your revenue both now and in the future. It includes the often overlooked cost of lost potential account growth.

Acquisition Costs

Did you know that it costs up to 25X* more to acquire a new customer than to retain an existing one? Even if you replace each customer you lose, you significantly hinder your profit growth potential.

Social Costs

According to a Zendesk survey**, 95% of people share bad experiences with others, and 45% share those bad experiences over social media. Among those who share bad experiences, they tell an average of 5 people. So, a lost customer can quickly snowball into additional loss – both with your current and potential customer bases.

Operational Costs

When offboarding a lost customer, you need to ensure all property has been returned and client details are shared with the new provider. This operational cost comes after the point at which you’ll receive no additional revenue; it’s just deadweight cost.

*HBR, 2014, **Zendesk, 2013

IT Glue & the

Four Pillars

So what’s the answer for minimizing customer loss? There are four crucial pillars for ensuring consistent customer satisfaction, and increased retention across your entire customer base.



It’s important to take the right action at the right time.

1. Set expectations from the start to ensure you consistently deliver on your commitments.

2. Take preventative action to make sure your customers know the value you’ve delivered to them.



Document and monitor information.

1. Ensure all relevant customer information is up-to-date and immediately accessible.

2. Establish processes for updating information checking for accuracy, and tracking amendments.



Be proactive, personal and regular with your customer communications.

1. Verify and reiterate your value.

2. Demonstrate the work that is going on ‘behind the scenes’ with summative, personalized communication of issues, risks and fixes.



Focus on issue resolution both internally and for the customer.

1. Make sure the right people are dealing with the right issues and every asset required for a swift response is readily available.

2. Enforce and practice a solution vs. problem oriented mindset.

IT Glue and the Four Pillars

How can IT Glue help you build the four pillars of customer retention? By bringing all of your information together in a secure and intuitive platform, IT Glue empowers your team to deliver the highest standard of service at a lower cost of provision.

Adopting IT Glue into your MSP allows you to reduce your time waste by up to 50% and reduce the true cost of customer loss through a number of key features:

Save time and enhance network visibility! Network Glue automates the discovery and documentation of devices, increasing client onboarding speed and efficiency for your team.

Deliver the Best, Most Comprehensive, Flexible IT Services

• Network Glue Collector is a lightweight Windows service that can run on any server or workstation to conduct network discovery

• Network Glue Collector is uniquely configured per IT Glue organization and uses a number of network protocols including SNMP, pings, broadcasts, WMI, and Active Directory to discover device information

• Devices found by the Network Glue Collector are automatically matched to existing IT Glue Configurations

• Existing IT Glue Configurations are enriched with Network Glue Collector information including device name, type and description, IP address(es), MAC address(es), web server type, gateway, operating system, host name, device contact, and
physical location (if available)

• Opportunity to manually match or create new IT Glue Configurations from devices found by Network Glue Collector

• Up-to-date network diagrams allowing MSPs to enjoy greater visibility into client environments

Getting Started

Network Glue is an add-on solution to IT Glue that keeps network documentation up-to-date. Visit the IT Glue Knowledge Base for a step-by-step guide to documenting your first network.

Network Glue the automated network documentation tool that discovers, documents, and diagrams an organization’s IT environment.

At-a-Glance Benefits

Why IT Glue?