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Comments (RSS)Originally posted. January 10, 2010
I know number of companies and freelancers running a web hosting business in small or large indistinct shapes. Some are having good amount of dedicated or VPS servers and some are serving to their clients from the reseller hosting accounts (already explained in my earlier post)
Whom so ever is running a website hosting business, very much aware about all the challenges in the business? Several competitors are available in a click, ready to undercut your price.
Now most customers understand hosting business model very well, they now well that in these days this business as a commodity and shop by price. Several websites, directories, PPC adds, and many ways are available to make it easy to comparison shop.
Now must bubbling question in your mind is how can you get more profits from your hosting business under in these circumstances?
[A] GET THE CUSTOMER
First of all let me tell you one thing very straight a client who is having the minimum space with you and paying very negligible cost to you per month is value for your business calculate the lifetime value of your customer. The best thing with the hosting business is, it’s a recurring piece for you, until client is really not unhappy with your service believe me he is not going to move from your server to anywhere all though moving from one server to another is also not very enjoyable moment. Let’s calculate things with one example, let’s say the average customer takes minimum space slot with you and pays 58-60 Rs. per month. That means their one year value to your company is is near about 700 Rs. So every customer you acquire makes your business (on average) 700 Rs.
If a visitor comes to your website, then leaves to comparison shop, you have more than likely lost that sale. Have you invested in sales copy that compels your visitors to buy from you? Does your website help him to see that you are the best choice for his situation? Showcase your credibility, guarantee services and offer incentives to try your service. Make it easy to buy from you.
[B] HOLD YOUR CUSTOMER’S
Because each customer is hard-won and the value of the customer is so high, you’ll want to make sure you have the support services that keep your customers happy.
Once a customer leaves you for another website host, he’s gone forever. You probably already make customer service a priority, with email answered in a timely fashion and well-trained technical support. Go the extra mile. Don’t wait for customers to contact you. Ask your customer how you’re doing.
[C] UPGRADE YOUR SELL FOR THE EXISTING CUSTOMER EASILY
The customer has already bought from you. There is familiarity and trust. You can easily offer complimentary items to your current customer list.
The major concern of your customer is how to succeed online and generate revenues from the websites. It’s easy to offer online marketing tips and tools, ebooks and additional services. Once he’ll show some interest on it and not finding very comfortable himself for all of that, he’ll get back you to hire these services from you. It can be as simple as joining an affiliate program for an item your customer may need, then making him aware of the item.
Let me know in case of if you are looking answer for some other questions in same subject.
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