{"id":55657,"date":"2020-04-30T17:20:14","date_gmt":"2020-04-30T22:20:14","guid":{"rendered":"https:\/\/blog.cpanel.com\/?p=55657"},"modified":"2020-04-30T17:20:14","modified_gmt":"2020-04-30T22:20:14","slug":"scale-up-your-hosting-business","status":"publish","type":"post","link":"https:\/\/devel.www.cpanel.net\/blog\/products\/scale-up-your-hosting-business\/","title":{"rendered":"Scale Up Your Hosting Business By Serving Your Customers"},"content":{"rendered":"\n

The web hosting industry has made significant changes in the past decade, and customer expectations have moved far beyond storage to a services-driven market. In 2020 there are about 2 billion websites online, and a new domain is registered every 2 seconds. The growth of the internet continues to reach new highs and new markets. In the hosting sector, growth can come in many forms.<\/p>\n\n\n\n

How does a hosting company increase revenue and continue to scale services? <\/h2>\n\n\n\n

Hosting companies typically focus on customer acquisition, which is a good target because, by the time you finish reading this, thousands of new websites will be hosted on the web. But the hosting industry is a competitive business, and customer attrition has always been tricky with constant drop rates caused by downtime, support quality, and other growing pains. For years, hosting companies’ growth has relied on Customer Acquisition Rate (CAR). Still, with the fierce competition in the industry, focusing your growth on Customer Lifetime Value (CLV) and the Average Revenue Per User (ARPU) is a proven strategy.<\/p>\n\n\n\n

Increasing your APRU is nothing new in the hosting business; from webmail options to SSL certificates, and other checkout add-ons, most hosting providers have used upsells in their sales funnel for years. These bundled service packages increase your ARPU, but are you missing opportunities after initial acquisition?<\/p>\n\n\n\n

Bundled service packages work at the start of a customer journey, but offering custom upsells based on CLV and personas can jumpstart your ARPU. Understanding your customer’s personas and needs should be part of your current growth strategy. Personas can range from a customer’s industry, content, skill level, and more. Once you breakdown your customers into personas, you will know your customer needs based on data and ARPU increases. <\/p>\n\n\n\n

Creating custom package tiers based on personas and usage can give you insight into the customer’s needs from day one. For instance, understanding what type of website platform your customer uses, such as WordPress, can help you shape the customer journey. By offering your customers upgrades and add-on solutions based on this data, you can start to make custom upsell strategies that perform. Setting yearly goals for each persona is another excellent growth strategy.<\/p>\n\n\n\n

What are the top-performing web hosting upsells and add-ons?  <\/h2>\n\n\n\n

The current offerings have become industry standards, with most hosting plans offering at least one or all of the following included: <\/p>\n\n\n\n