Your CSAT score may be one of the most important indicators of your MSP’s growth potential, according to ScalePad’s new 2025 MSP Business Trends report. While some MSPs think of CSAT scores as almost a vanity metric, it can actually pay major dividends when it comes to MSPs’ ARR.
The report, which surveyed more than 1,300 MSPs of all sizes, from one-person shops to large companies, found that the MSPs who are much more likely to have recurring revenue rates in the 51–80%+ range, with best-in-class customer satisfaction scores, are slightly more likely than average to report making between $5–$10 million in annual revenue.
ScalePad executives highlighted several of the report’s key trends for MSPs in 2025 in a virtual presentation this week. Here are the top four.
Trend #1: High-Performing MSPs Have High Client Retention
The study found that regardless of size, top-earning MSPs were more likely to have higher client retention and higher recurring revenue rates. This shows that long-term client relationships contribute to consistent growth. However, nearly a third of the respondents have customer retention rates below 50%—meaning they have to replace half of their clients annually, says Evan Pappas, ScalePad content writer and author of the report.
“MSPs definitely underestimate how important retention is,” says Luis Geraldo, CXO of ScalePad. “The high performers are often over 100% net retention, meaning they’re keeping all their customers and continuing to grow.”
Trend #2: Higher Client Satisfaction Leads to Higher Growth Rates
MSPs with best-in-class customer satisfaction scores were found to not only have higher retention rates but also project higher growth for 2025. In addition, these MSPs were slightly more likely to have higher annual revenue and recurring revenue rates. Some of the performers with the highest CSAT scores were more likely to approach client engagement from a strategic or consultative angle.
“These high CSAT performers largely have formal customer success programs, client-facing technology roadmaps, and renewal strategies in place. They often offer a broader range of services to their clients, conduct monthly client reviews, and regularly collect customer feedback,” says Pappas.
Additionally, the report indicates that MSPs with high CSAT scores are more likely to also track customer effort scores, SLA compliance rates, and NPS. This indicates a more in-depth approach to measuring the client experience can lead to improved customer satisfaction.
Interestingly, the most uncommon customer success tactic—offering a vCIO/vCISO program—is the most indicative of success. Only 24% of respondents offered them, compared to regular business reviews (54%), regular feedback sessions or loops (50%), and strategic consulting services (49%), but top-earning MSPs are more likely than average to do so.
These findings indicate that consistently seeking out client feedback can not only improve the customer experience, but make MSPs’ teams more effective when serving them.
Trend #3: Most MSPs Surveyed Project Growth in 2025
Excitingly, the majority of the MSPs surveyed project growth in 2025. Approximately half of those plan to grow with client acquisition; the other half intend to offer new services or expand existing partnerships.
“The focus on new business could explain why just over a third of MSPs plan to increase their marketing investments in 2025 as well, and are prioritizing hiring sales and marketing roles. Larger marketing budgets tend to be associated with more revenue—though those MSPs may miss out on other ways to increase profitability,” says Pappas.
“Our industry has been very referral growth-based for a long time, especially at the smaller MSP size. But I do think referral growth has a bit of a glass ceiling; this is when MSPs start to look at actual sales and marketing opportunities to grow that revenue opportunity,” Geraldo says.
Trend #4: MSPs Are Expanding Services They Already Offer
The core services most offered by MSPs are IT help desk, network management, network operations, cybersecurity management, and cloud services. This list is similar to last year’s findings.
“When asked which services they intend to grow in 2025, MSPs are focusing on the top services, which they’re already likely to offer,” Pappas says. “This suggests that MSPs aren’t necessarily looking to offer brand-new services to grow their business, but want to either sell their existing offerings to new customers or expand these core services among existing clients.”
That said, MSPs who offer more services overall, including more uncommon services, such as disaster recovery or software license management, tended to have higher overall revenue, CSAT scores, and client retention rates.
Want More?
For more trends anticipated in 2025 and specific statistics, check out ScalePad’s full 2025 trend report. To read more about what’s coming up for MSPs in 2025, read our 2025 predictions survival guide here.
