Managed service providers (MSPs) have always cared about customer retention—but now IT vendors are putting real incentives behind it. Amazon Web Services (AWS), for example, is introducing two updates to its partner program next year that reward MSPs for keeping customers engaged and growing:
- An MSP Incentive for Customer Management, which rewards partners for helping customers adopt and actively use cloud solutions, and
- An MSP Incentive for Strategic Services, focused on driving adoption of high‑value capabilities through specific AWS services.
These programs signal a broader shift: vendors see long‑term customer success as a shared priority, and they’re willing to compensate MSPs who deliver it.
Why customer management and employee engagement matter
While customer management incentive programs aren’t new, MSPs can easily become complacent with long-standing clients. Many customers will not voice dissatisfaction until contract renewal—by which point they may have already explored competitors and discovered how far their budgets could stretch elsewhere. Staying proactive is critical for reducing churn and protecting recurring revenue.
Internally, MSP leadership also needs to maintain employee engagement. Though most employees understand that revenue contributes to stability and growth, structured incentive programs provide clearer direction. Rewards tied to measurable outcomes—like customer satisfaction improvements, upsell achievements, or higher commissions for new client acquisition—help teams stay focused and motivated.
Vendors offering new paths for MSP growth
Some vendors now enable MSPs to earn commissions for referring clients to services they don’t directly provide. Others, such as AWS, use programs like the Partner Greenfield Program (PGP) to help MSPs build new practices, including application modernization or cybersecurity services.
This type of vendor funding gives MSPs opportunities to expand their service portfolios without absorbing the entire upfront investment—something that was historically a major barrier for organizations operating on tight margins.
Strategic planning for 2026 and beyond
It’s unclear how much total funding IT vendors are pouring into customer management incentives, but it’s a source MSPs shouldn’t overlook. In the past, expansion relied heavily on reinvesting limited profits—often nearly impossible with razor‑thin margins. Today, vendor-backed incentives can help offset development costs and support broader growth strategies, especially as customer needs continue to expand.
As MSPs head into the New Year, it’s a perfect time to evaluate and expand service offerings. Prices for foundational services are likely to decline, increasing pressure on already-tight profit margins. Diversifying into higher-value services will be essential for maintaining competitiveness and financial health.
MSPs that make strategic, forward-looking investments in 2026 will be best positioned to navigate economic shifts and seize new opportunities. The key challenge will remain finding the right balance between returning profit to stakeholders and reinvesting enough to sustain long‑term growth.
Photo: Andrii Yalanskyi / Shutterstock
