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Reducing Customer Churn   no comments

Aug 4, 2010 @ 3:55pm TurnKey Marketing,Web hosting

One of the biggest challenges for any web hosting company is reducing the rate of churn. Churn, or turn-over, is the rate at which customers cancel services. In the web hosting industry, churn can be alarmingly high, especially when economic times are difficult and customers are paying month-to-month. But, while all the big web hosting companies spend thousands of dollars getting customers in the door, really tackling the problem of churn is something many fail to do well. Fortunately, there are a few tried and true techniques for retaining customers and reducing churn that every web host could benefit from implementing.

Immediate Follow-Up

Every cancelation request is an opportunity. If you have an automated billing system for your company, you can start by scheduling an email cancellation message to send out to every customer that cancels her services. Compose a friendly message that politely asks why the customer cancelled. Ask if she was unhappy with your products or services. If you receive a response, consider it an open door. Send another email, offering to significantly reduce her monthly bill. Making less money is better than making no money. If you don’t receive a response, schedule another email for a week or two after the initial cancellation. In your second email, offer specials or deep product discounts designed to entice her back to your business. Make it an offer she can’t refuse. Don’t give up. A previous customer is an extremely valuable lead. Chances are good, if you’re consistent, polite and solicitous, that customer will think of you the next time she needs web hosting. Customer loyalty is a powerful thing. Make the most of it.

Appeal to the Businessman

One tactic I have found extremely effective is to appeal to the logical businessman in our customers. Web hosting is unique in that it is the portal through which our clients reach their clients. Without a website, most businesses will fail nowadays. Sometimes a phone call with a simple sales pitch works wonders. Not only is it harder to say no over the phone, a convincing voice explaining how important it is to maintain your business presence online goes a long way. Pair that with an unbeatable offer for discount services, and reel that client right back in.

Take it from the Salesman

A good salesman can convince anybody of anything. But when you have a great product with great service at a great price, you don’t have to be the best salesman in the world, you just have to tell it like it is. Get your message out there and be consistent. Like I’m always saying, success and hard work are the same thing.

Help Your Customers Succeed

According to a whole lot of industry experts, the main reason businesses fail online is bad marketing. You can’t sell something nobody knows about. It may seem obvious, but most hosting companies don’t go the extra mile to help their customers market their services and they lose customers because of it. Give your customers tips about how to get noticed. Put together an e-book full of marketing research and ideas. If your customers are successful, you will be successful. This is also a no-brainer when it comes to building brand loyalty. If you help someone make money, they are not likely to forget it.

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Written by admin on August 4th, 2010

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