How do you determine if your business is truly thriving, or if you’re just scraping by? For Managed Service Providers (MSPs), defining and measuring business performance is critical for aligning your efforts with long-term success. But with so much data at your fingertips, it can be overwhelming to figure out what really matters.
This guide is designed to help MSP owners like you understand what business performance looks like for your organization, which metrics to prioritize, and how to translate the numbers into actionable insights. By the time you finish reading, you'll have practical tools and strategies to sharpen your focus, streamline operations, and drive growth.
What should you measure to track your company’s success? Here are three core metrics MSPs should prioritize:
Revenue is the lifeblood of any business, and for MSPs, its consistency is vital. While seeing your topline revenue grow is exciting, don’t forget to track recurring revenue. This ensures you’re not overly reliant on one-off projects or clients.
Did you know it costs five times more to acquire a new customer than to retain one? For MSPs, customer relationships are long-term investments. High customer retention indicates that your clients see value in your services, while a low retention rate could point to unaddressed issues.
If your business runs like a well-oiled machine, you’re winning. Tracking metrics like response times, resolution times, and tech utilization rates gives you a clear snapshot of how effectively you’re serving clients.
Now that you know what to measure, it’s time to choose the right tools and systems to track your efforts effectively.
KPIs are measurable goals that can keep your business and teams focused. For instance, a KPI for an MSP could be reducing ticket resolution time by 15% in the next quarter.
This strategic tool provides a broad view of business performance by categorizing key objectives into four areas:
The balanced scorecard ensures you're measuring performance holistically and not just focusing on financial results.
Dashboards make your data come alive. Tools like BrightGauge and ConnectWise can consolidate numbers into visually pleasing charts, making performance data easy to interpret in real time.
The numbers themselves don’t tell the full story—you have to dig deeper to uncover insights.
Look for patterns in your data. For instance:
Spotting trends helps you forecast challenges and opportunities in advance.
For MSPs, measuring against industry benchmarks can provide much-needed context. If your average SLA resolution time is longer than the industry standard, it’s a clear sign you need to reassess your internal processes.
Data can only take you so far. Ask questions to guide decision-making:
When in doubt, involve your team. Often, those on the frontlines—your techs, sales team, and customer service reps—can provide qualitative insights to back up your numbers.
You’ve measured and analyzed your data—now, how do you use it to improve your business? Here are three key strategies:
Efficiency is the backbone of profitability in MSPs. Streamline workflows by:
Small tweaks can make a big difference. For instance, improving first-response times by even 10% could lead to higher customer satisfaction and retention.
Does your current toolset meet the evolving needs of your business? Upgrading to new tools or software can drive efficiency and create better customer experiences.
Your team is the heart of your business. Regular training sessions keep your staff sharp, engaged, and aligned with company goals.
Not only does this boost morale, but it also improves your overall service quality.
Defining and improving business performance isn’t something you have to tackle alone. That’s where Bering McKinley's team of expert consultants comes in.
At Bering McKinley, we specialize in helping MSP businesses unlock their true potential through tailored strategies and data-driven insights. From setting KPIs to optimizing operational workflows, we’ll guide you every step of the way.