Thanks to all who stopped by our booth and chatted with Brian Winebarger and David Stewart!
It was the march of the penguins last week in San Diego with the R1Soft crew in San Diego, California for HostingCon Global 2015! As a Gold Sponsor of the event, we were all too excited to chat with hosting providers at our booth and soak up key web hosting industry insights during the conference. Thank you to all who stopped by, said hi, and attended Product Director, Ben Thomas's session, What Does Your Backup Service Look Like! We hope you left our presentation with key takeaways for how to grow your business with a premium backup service.
We also popped in and out of sessions, and the following three points resonated with us...
1. You should be selling solutions beyond domains and hosting (e-commerce anyone?).
In this sales and marketing session delivered by Wilfried Beeck, Founder and CEO of ePages, attendees learned that many hosting providers neglect to offer managed e-commerce solutions because they believe it's too niche for their target market. You shouldn't just be selling domains and hosting, however. There's a real value add to providing clients business applications, cloud services, and website builder apps. Indeed, Beeck maintains that by offering managed e-commerce and charging a higher price point, you'll have a high customer lifetime value and increased long-term profit in your market. The need for hosting providers to expand your portfolio of offerings was echoed in multiple sessions, with industry luminaries advocating for managed e-commerce, disaster recover as a service (DRaaS), and managed security as lucrative solutions.
Clearly, hosting providers can capitalize on this opportunity, but make sure you offer a solution that's easy, scalable, secure, auto-updated, low cost, and resource light.
Still not convinced?
- 5-10% of websites are e-commerce websites, featuring an online store
- 17% average increase in revenue for retailers who implement online stores
- Hosting companies that add a managed e-commerce solution increase the lifetime value of their customers by an average of 3.5 years.
Our team took booth antics to a whole new level by juggling.
2. You need to understand Amazon Web Services (AWS) so that you can differentiate your solution as one of higher value for customers.
This next takeaway comes courtesy of the panelists from Hosting 3.0: What Does it Look Like. The panel discussion focused on the top issues facing hosting providers today and featured industry CEOs answering questions about the hosting market's strengths, weaknesses, and future growth. With so much ground to cover, the conversation mainly centered on AWS's role in the current hosting landscape. For those who are worried about competing with AWS, we learned that AWS customers are not using the peak capacity of the services that they purchase, therefore spending money they don’t have to, or they don’t have! Additionally, hosting providers have the advantage of being able to consult customers one on one on their consumption and business models, as well as tailor a solution to meet their customers' needs. Ultimately, the way you differentiate your solution and services is through superior service and personal connections. Go forth, shake hands, kiss some babies and be out there.
Tux would like to thank HostingCon Global for a great conference!
3. You know your business, take advantage of the opportunity to educate your customers about the value of adopting your cloud technology solution.
Knowledge is power! In the management track, the How ISVs, Service Providers, and Cloud IT Distributors Can Partner to Optimize the SMB Cloud Market Opportunity panel gave us new appreciation for why so many of your SMB customers are resistant to the cloud and posed suggestions for how hosting providers can increase cloud adoption. According to an SVP of Cloud and Hosting Sales at a back up service provider, the cloud is a better economical choice for your SMB client base. Why? It offers a low cost solution to backup, and if needed, gets the almighty restore. To sell them on this, you must understand what your customers needs and provide an easy solution, ideally set up in under two minutes. Bottom line: If you want to move more clients to the cloud, teach them how it will impact their bottom line. Make the business case for cloud adoption and streamline your processes and solution to optimize the customer experience.