Service is the key to business survival

Customers are the lifeblood of a business. How to hold on to them should influence every part of a firm's survival strategy, argues Rob Lovell.

Throughout the internet industry, and certainly in the hosting space, looking after your customers means continually improving the service that you offer.

You must revisit your core competencies. Get the basics right and customers will stay with you. If they get the service they want, customers will invest in your organisation.

For example, setting realistic service levels and then delivering them seems obvious, but it does not always happen. Some providers do put their money where their mouth is, whereas others just offer their best endeavours.

In the hosting space, customers understand the importance of uptime and support, so service level agreements are fundamental in building a strong customer-centric business model.

Cost control is also key. Choosing the right office space, the right people and not over-staffing are essential.

A firm that makes a steady five per cent profit based on customer retention has a much better chance of survival than one that peaks and troughs.

Delivering quality customer service does not have to be expensive. In fact, it can lead to savings in the long run.

We found that our customers really wanted more control of their hosting environment and hated spending valuable time sitting in a phone queue waiting to talk to support staff.

The solution was automation. We empowered our customers by giving them the tools to manipulate their own websites.

By developing a bespoke solution, the amount of money and time saved justified its expense. Customers gained more control and were more satisfied.

Customers tend to be critical if you are considering buying or joining forces with another company. The shake-out in the internet sector has led to many mergers and acquisitions which, in some cases, have been essential to survival.

But, if you are considering either, remember that both have advantages and disadvantages.

As a company, you are the interface between customers and the often bewildering world of technology. Give them clear information and go that extra mile with the services you offer.

Rob Lovell is president of web and application hosting provider Hostway.