Web Hosting Company's Bottom Line
You're a growing web hosting company, looking to grow even bigger. Is there any way to increase the funds you are collecting from existing customers?
Yes! Oftentimes, the web hosting company doesn't realize just how easy this can be, as well as the fact doing so means no added overhead! If you are looking to increase your average revenue per user (ARPU), you'll want to read the following advice carefully.
Web Hosting Company's Bottom Line: Look To Other Industries
The majority of hosting companies think that the only way to increase revenue is your standard “X% off your next purchase” deals. But is that the only way?
For the answer, look at other industries, like car dealers, direct mail companies, and even grocery stores. If you look closely at how these industries are able to increase ARPU, you can learn something of value to apply to your cheap web hosting company.
Web Hosting Company's Bottom Line: The Grocery Store Example
Grocery stores are a great example of something small you can do to increase ARPU. People shopping in a grocery store need the items on their list. But is there more they need? What do the grocery stores in your neighborhood offer?
I know mine offers a bank with hours different (and more convenient) than that of their main branches. Also available: video rental, a pharmacy, balloons, convenient bill payment center for most utilities and services, Western Union services, lottery sales, and even carpet cleaner rentals. Although they need groceries, the grocery store owners know that offering people more of what they need at one place brings people back more regularly.
Look into the kinds of things (bottom line) you could add to your offerings that would give your cheap web hosting company more value and keep them coming back time and time again.
Web Hosting Company's Bottom Line: The Amazon Example
Who hasn't received a package with that Amazon smile on the side of the box? I'm sure there are a few, but most people have opened one or two (or more!) of these in their lifetime. Do you remember what was inside, besides the goods you ordered or that someone else had sent to you?
Inside the box, besides the receipt and the product, was a brochure or flyer with another product they offer. Maybe it's another product that relates to what you'd purchased, maybe something entirely different. There are some people that likely ignore this piece of paper, sending it to the recycle bin. Other people (and there are plenty of these people) take advantage of this special offer described on the flyer.
Although Amazon knows not everyone will take action, but the percentage of people that do still bring them more revenue. If you partner with another company for a special offer that you can include in your monthly newsletter emails to customers, some people will act. These revenue shares, where you partner with another company and split the profit, will increase your ARPU.
Web Hosting Company's Bottom Line: The Airline Example
Gone are the days where an airline strictly sells plane tickets. Now, you can get package deals, like plane tickets and a hotel room, or a rental car or other form of transportation.
Again, with the partner idea in mind, choose a company that will work with you, offering a discount to your customers. This way, customers think of you for everything as you offer package deals with other companies. They don't have to go elsewhere to get what they're looking for, just their web hosting company!
Web Hosting Company's Bottom Line: The Car Dealer Example
Go to any car dealer, and you realize they sell more than just cars. As a matter of fact, their main goal is to get you coming back time and time again for anything but buying a car. Usually it's their service department, offering specials on oil changes or a percentage off their next big repair job. When you go to the service department, you see the brand-related merchandise displayed behind the counter: things like tee shirts, mud flaps, coffee mugs, decals, and floor mats. These items either feature the car dealer or the car brand itself.
Again, it all comes down to this: offering your customers more than just web host