Hosting companies that aim to compete in the market often decide to reduce valuable services, such as customer support, that don’t directly boost revenue. But U.K.-based 365Hosts takes a different approach. The fully-managed hosting solutions provider makes exemplary support a critical feature of its retention strategy while offering competitive rates. And as it grows, 365Hosts uses feedback to develop new services and features that will add more value for its customers.
Web hosting providers that want to succeed in a highly competitive industry face two significant challenges. First, the margins on many service offerings in an over-provisioned market may be slim. Second, their business models typically need to exclude value-added services that don’t produce revenue.
Too often, that dynamic leads to decreased customer support, and the resultant churn can drive up new customer acquisition costs for companies — which further hurt their bottom lines.
But U.K.-based 365Hosts has a different approach. CEO Chris Withington told us that the company doesn’t view customer service as a cost centre. Rather, the host’s focus on delivering robust support is allowing 365Hosts to differentiate in a crowded market that leaves few opportunities to stand out through innovation.
“When we first started, there were many web hosts on the market that offered either very expensive or very cheap hosting solutions,” Chris said. “So we wanted to offer a hosting model that would appeal to a mass audience, but also attract the affluent end of the market. So we offer support and advice, but without the costs that are often associated with such value-adds.”