Why So Many MSPs Are Losing Clients Left and Right?

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Why So Many MSPs Are Losing Clients

The demand for Managed Service Providers (MSPs) has been steadily increasing in recent years. Whether small-scale businesses or large corporations, executives prefer to outsource their processes and functions to third-party to take the burden off their shoulders.

This strategy serves quite well as companies can focus their man hours on more crucial activities by allocating their service needs to MSPs. It allows for lower budget requirements, less infrastructure, and a higher quality control overall.

Even though the demand for MSPs is steadily increasing, many top MSPs in the US are losing chunks of their clients. Keep reading to find out why:

The Cause Lies in Weak Cybersecurity

It is no secret that the incidents of cyberattacks have exponentially risen in the last few years. The increase in cyberattacks is partly due to outdated cybersecurity practices and partly due to the work from home and remote access culture that has developed lately.

Successful cyberattacks take more from a company than its data. Once attackers can manipulate a company’s cybersecurity defenses and breach their systems, they have access to all information about the company’s clients.

The ‘clients’ that we are talking about here are businesses that value their privacy above everything else. Once their data is violated, the clients lose faith in the company and look to switch their MSP instantly.

Weak Cybersecurity Can Even Void Your Insurance

Many businesses do not pay much attention to cybersecurity, thinking that their cyber insurance will cover the cost of any risk. However, cyber insurance is no longer a safe bet for cyber protection.

Firstly, the premiums have increased significantly due to increased cyberattacks. The ransomware attack cost to businesses has also increased, driving the premiums even further.

To make matters worse, a new trend has emerged where the companies are voiding the insurance policies of the business holders. This occurs when companies find out that the businesses are taking their cybersecurity lightly due to the presence of an insurance policy.

Many applications enable companies to scan a business’ website or online services, checking for vulnerabilities. In many cases, insurance companies find that the policyholders neglect their cybersecurity greatly, giving easy passage to cyber attackers.

What Does This Mean For Clients?

When companies have weak cybersecurity or get their cyber insurance disrupted due to weak cybersecurity, it is a big red flag for the company’s clients.

Regardless of which sector a business operates in, clients of the business will always value their privacy. When a business gets compromised in a cyberattack, the first thing that the attackers exploit is the client data.

For most businesses, client data includes sensitive information such as the client’s names, addresses, phone numbers, social security numbers, and credit information. Compromising this data is a deal breaker for any client, so they choose to take their business someplace else.

How to Retain Clients By Strengthening Cybersecurity?

For businesses to retain clients, they need to bolster their defenses. The best way to do that is by hiring a team with expertise in this area, such as Tekkis Cybersecurity.

Tekkis Cybersecurity (Tekkis) works with small to medium businesses in the US to develop and implement customized cybersecurity solutions.

Why Choose Tekkis?

Most cybersecurity service providers hook you up with a service that they are providing to several other businesses with very different needs. That is not how Tekkis Cybersecurity works.

At Tekkis, you get a free consultation with a top cybersecurity professional on the Tekkis team. The professional will understand your business and the IT processes. After that, the team crafts a detailed plan that perfectly suits your business.

The best part is that, unlike other cybersecurity agencies, you just have to pay for the services you actually require. The services are tailored to fill the missing holes in your current IT network and then strengthen the entire network so attacks do not penetrate.

Benefits of Having a Customized Cybersecurity Service

When you get a tailored cybersecurity solution from Tekkis Cybersecurity, here are some of the benefits your business receives:

Free Consultation

As mentioned earlier, the best thing is that Tekkis provides a no-obligation, free consultation. During the consultation, the cybersecurity expert can guide you on what strategy will be the best for your particular business setup. If you want to proceed another way, you have the complete freedom to do so.

Get a free consultation

Go Easy on Cyber Insurance

Once top cybersecurity professionals such as Tekkis Cybersecurity look out for you, you can go easy on cyber insurance. With regular Tekkis audits and implementation of security measures, cyber insurance costs can be reviewed.

Even if you need a cyber insurance policy for peace of mind, you may not require extensive coverage that comes with a costly premium. Even a lower insurance policy will could possibly suffice.

Client Security

When you are working with Tekkis, the protection extends to your client data. Having a dedicated cybersecurity agency like Tekkis looking out for you can be a unique selling point for your business. More and more clients will trust you since you are going the extra mile to protect their data.

Long Term Savings

Spending on cybersecurity ends up being a saving when you consider the financial cost of a successful cyberattack. Even without counting the impact of losing clients, the financial cost of cyberattacks runs from hundreds of thousands of dollars to millions.

Therefore, as a precaution, spending a small fraction of that cost on cybersecurity measures ends up in long-term savings.

Cybersecurity vs. Cyber Insurance

Many business executives wonder whether they should place a higher weight on cybersecurity or whether cyber insurance requires more investment.

The priority between the two is easy to understand and estimate. Cyber insurance protects you after the harm has been done and your systems have been breached. While it may cover your financial losses, it will not reimburse you for the loss of reputation and the loss of clients as a result.

On the other hand, investing in cybersecurity eliminates the risk of facing a cyberattack. This not only provides a financial assurance in itself, but it also makes sure that you do not have to face the loss of reputation or the loss of clients.

Therefore, a solid cybersecurity strategy eliminates the chances of a disease that cyber insurance aims to treat.

Endnotes

As an executive, relying solely on cyber insurance or liability insurance to protect your business from any scenario can be fatal to the business. First things first, you need a good cybersecurity agency so that your defenses are completely protected, saving you from willful neglect.

Once the cybersecurity plan is in place, you can choose any insurance policy to cover the remaining business necessities. For making the cybersecurity action plan, all you have to do is talk to our expert at a time of your choosing.

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