Customer Care’s Importance in the Web Hosting Business
Table of Contents
Customer care team offers important insight into customer experience Retaining customers is more costeffective than acquiring new customers Quality of customer service impacts customer lifetime value (CLV) Conclusion
Customer Care Web Hosting Happy customers stay loyal Happy customers will refer their web host to others
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Customer Care ďƒ‰ Customer care is the service provided to customers before, during and after the purchase of a product or service by them. It is meant to ensure the satisfaction of customers with regard to a business’ products and services. Customer service is a crucial element to increase customer loyalty as well as it helps in word-of-mouth marketing. There are many important factors that need to be kept in mind when a business needs to ensure that it delivers the best quality of customer care. Ensuring a perpetually high quality of customer care is extremely important as it leaves a positive impression on the customers and enhances their customer care experience with that particular brand.
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Web Hosting YELLOW Web Hosting is usually either a chargeable or at times a free service that is provided by a web hosting service provider company. It enables anyone to make his website available and accessible via the Internet. Web hosting encompasses the services and technology that keep a website up and running efficiently. The major types of hosting services are- shared, dedicated, VPS, cloud, reseller, WordPress. These days there are many web hosting companies which offer pretty similar packages at almost similar prices. In this fiercely competitive field, customer service is a defining factor that ensures that a particular web hosting company gets the edge over its competitors. For any web hosting company in India or abroad, customer care is extremely important. The same is true for any Cloud hosting company or any Windows hosting company in India. In the following slides, let us take a look at the reasons that make customer service a crucial factor for any web hosting company’s popularity and its success in this competitive business field. 4
Happy Customers Stay Loyal ďƒ‰ When a customer is happy with the service quality that is provided by its web hosting company, then he has no need to look for any other service provider as his needs are adequately met. This ensures that the web hosting company is not losing its existing customers to its competitors, since they remain loyal to their web host. Customer retention is not only beneficial in terms of the revenue that the company earns but also in terms of its brand image which receives a boost. When customers stay loyal to a web host it automatically reflects their satisfaction and confidence in its services. Customer care goes a long way towards ensuring this loyalty as it is the direct link between a company and its customers. 5
Happy Customers will Refer their Web Host to Others 6
Word-of-mouth publicity is another benefit that comes along with satisfied customers. When a customer is happy with a web host’s overall service and especially with its customer care, then there is more likelihood of him referring his web host to others who are looking for web hosting services. He will also give positive reviews on online forums. This too helps the web host to gain more customers through this word-of-mouth publicity and eventually increase its customer base as well as revenue earned.
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Customer Care Team Offers Important Insight into Customer Experience Since the customer care team of any web host is always in direct contact with the customers, they can offer very valuable insights into customers’ experiences, preferences as well as their perception of the brand. This crucial information helps the web host to strategize and take future business decisions and design marketing strategies accordingly. When the information comes directly from the customer care executives, it is more reliable. It also saves the time and money that goes into marketing related surveys. If the customer care experts are proficient enough, then they can glean from the customers this crucial information through their interaction. This helps to not only understand how the web hosting service can be improved but also helps to plan the most effective marketing strategies for acquiring more customers.
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Retaining Customers is More Cost-Effective than Acquiring New Customers As per reports, the repeat customers, that are a direct result of customer retention, are 67% more likely to spend more with the same brand. Customer acquisition cost (CAC) which refers to the cost related to acquiring new customers is more for a company that doesn't invest in proper customer service. This is a strong evidence in favour of investing in customer care, be it the proper hiring of the right people for this purpose or their training or the maintenance of an efficient customer care team.
Quality of Customer Service Impacts Customer Lifetime Value (CLV) 9
CLV refers to the total revenue that a company can expect from a single customer account. It is a very important factor when gauging the success of any business. When this value grows, it is a direct reflection of the fact that a web host’s customers are opting for its service more frequently and/or spending more money availing that web host’s services. Investing in customer service improves the customer service quality which ensures that the customers have an excellent experience and this is turn ensures their retention and generation of revenue through them repeatedly. Thus, outstanding customer service leads to improvement in customer lifetime value.
1-800-123 -8156 Whoa! That’s a big number, aren’t you proud?
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Conclusion Any web host that is able to provide top-notch quality of customer service will always have a competitive advantage over its competitors. The web host that wants to have the lion’s share of the market needs to retain its customers as well as constantly acquire new ones. Loyalty of the existing customers and their word-of-mouth publicity plays a major role when it comes to achieving this goal. Both of these factors depend to a large extent on the quality of the customer service that is on offer which can even help acquire the customers of one’s rival web host if the customer care is exceptionally good. In fact as per certain reports, a little over almost half of any company’s customers part ways with the brand if they are not satisfied with its quality of customer care. Fortunately, this situation can be prevented by offering good quality of customer care. Thus, the importance of investing in and maintaining a stellar quality of customer care has many benefits for a web hosting company and is extremely important but is often undervalued
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