Using Website Hosting Coupon Codes to Grow Your Business
Running a website hosting business is not easy. Entrepreneurs who venture into this business niche face uptime, bandwidth, and data security challenges. A web hosting company that does not handle these challenges carefully risks losing most of its customers. One way of retaining existing and attracting new customers is by using coupon codes.
Webhosting promo codes work the same way as coupons used by businesses such as online and brick and mortar retailers. You provide your customers access to products and services at a discount. The aim is to create a loyal customer base that will buy more goods or services in the future. An entrepreneur could also use these codes to woo dissatisfied customers from competitors. This approach works well when a competitor faces operational difficulties or loss of client data. However, a coupon code marketing strategy requires proper planning and precise execution.
Before releasing coupon codes online, you should analyze your web hosting business's sales to determine how much you can afford to give away as discount. Find out whether their distribution contributes to your business's long term goals. If your goal is to grow profits, find out whether you could achieve the same goal by providing add on services to your existing customers. A good grasp of your business's overall financial position and goals will help you provide discounted offers that will improve sales.
Coupon Code Restrictions
Although customers will view these discounts as a way of saving money, they could drag down your company's revenues. For this reason, it is advisable to design and enforce restrictions around the use of your website hosting promotional media. For instance, you could tell customers that they can only use one coupon code per domain name. Another common restriction is offering them to new customers only.
Code Types and Expiry Dates
In general, there are two types of coupon codes: amount off and percent off. An amount off discount gives customers a specific amount of money as discount. For instance, you could offer new customers a discount of $10 for every $100 spent or so. On the other hand, a percent off discount allows customers to claim a certain percentage off purchases. For example, your webs hosting business could offer a 20% discount to existing customers who sign up for add-on services.
These promos should have well defined start and end dates -- validity periods. You could have such coupon codes run for a month. The rule of thumb is to ensure you do not run a coupon campaign for so long it drains your company's financial resources.
Attracting and Retaining Customers
Coupons can help you attract and retain customers. According to figures in the 2013 Shoppers Trend Report, 92% of consumers surveyed said they use such discounts regularly. In addition, online coupon code usage has increased from a paltry 16% in 2010 to 29% in 2013. To attract new customers, you have to offer a discount that sounds good and enticing. The same Shoppers Trend Report found that consumers consider discounts of about 25% to be good deals. Consumers also love coupons that offer a specific dollar amount off their purchases.
At the same time, you have to know your target audience's use of web hosting promo codes. For instance, up to 70% of people aged between 18 and 34 years tend to use online promos. In comparison, only 44% people 35 years or older use them (most prefer printable coupons). A good grasp of demographic statistics will enable you to fine-tune your promotions accordingly.
It is important to track your promotions for purposes of gathering and analyzing usage data. An effective way of tracking is by adding a tracking number or to each coupon. Whenever clients like website owners use your codes, you will receive data showing you when, where, and whom, used your product.
Overall, website hosting coupon codes can make a huge difference in your business's sales. However, you have to design your promotion strategy carefully. Make sure you create the appropriate restrictions such as expiry date and usage limits. You can distribute your promotions via social networking sites like Facebook and Twitter, sites that aggregate discount codes, and even your webhosting site. Track them by using special numbers or letters to determine which distribution methods are the most effective.
Visit NCM Online for numerous low cost hosting service promo codes.