Similar to the traditional telecommunications industry, the web hosting industry needs continued customer acquisition and long-term contracts to grow.
By its nature, marketing for web hosting products and services necessitates scaling and periodical renewal depending on customer segments. Therefore, the main strategy of nearly all players in this sector involves, first, customer attraction followed by customer maintenance for as long as possible.
Domain Campaigns for Getting New Customers
Every venture wishing to achieve growth needs new and sustainable customer acquisition. One of the most practical methods for fast customer acquisition, especially in campaigns with such a focus, is to choose products with limited decision-making parameters such as domains.
Domain products facilitate prompt purchase decisions regardless of the brand associated with their service base and promises. While there may be minor changes in some markets, most potential customers consider cost when choosing a domain registrar.
Therefore, focusing on new customer acquisition through aggressive discounts on market-leading domain extensions (e.g., co.uk for UK) is a strong client-based growth strategy for new or established web hosting actors.
Hosting Campaigns to Increase Customer Product Depth
When new customer acquisition as a result of domain registrations reach sufficient saturation, it is a good strategy to shift the focus to the profitability of your company. Web hosting products that deliver continuous and increasing profit through economies of scale for the entire web hosting industry will be great sources of regular income for your business.
Similar to the domain industry, in web hosting campaigns the probability and speed of signing contracts will significantly increase if the barriers to initial entry, i.e. the price on the first purchase, are lowered.
Thanks to the discounts you will offer in different campaigns throughout the first year or the first 3 months depending on your preference, the hosting services you provide will become the products of choice for your customers and their continuity will be ensured. Moreover, the campaigns will help lower the barriers of choice for potential first-time customers who may have difficulty making a decision given their possible reservation about your service quality; thus, bringing new customers to your company and making it the preferred choice even if your services are limited to mere web hosting.
Campaigns that Play upon Increasing Turnover with Complementary Products
In the web hosting industry, new revenue-generating opportunities can be created for your company by incorporating complementary products such as SSL, malware protection, and back-up solutions into the customers’ buying journey with cross-selling plans and instant opportunities, in addition to the basic needs such as domain and hosting services.
Your customers will regard you as “budget friendly” with the aggressive price reductions you will offer for the main product groups and will be more inclined to buy these product groups after evaluating complementary cross offers that you will present to their buying journey with the correct strategy.
Cross-merchandising offers that are designed correctly according to customer typologies during the sales journey are among the most valuable campaign strategies that will more than make up for the revenue you have missed out on as a result of the campaigns and increase your turnover and profitability.
Build Growth-Focused Campaign Strategies with Cloud MarkeThink
With Cloud MarkeThink, which has developed growth strategies for over 20 web hosting companies in different markets to date, you can get a free preliminary consultation to determine the most suitable strategies for you and your market, regardless of whether you are a new or established web hosting player.
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