Business

Using Web Hosting Coupons to Boost Sales and Increase Customer Loyalty

Most online businesses try to take advantage of consumer buying psychology and behavior in order to boost sales. Simply put, every potential sale is an opportunity to persuade the client to spend more than they originally intended. Web hosting providers are no different in this regard, which is why coupons and promo codes are so popular by online merchants.

Generally speaking, coupons have proven to be very effective tools used by webhosting companies to convince potential clients that they can get more value for their money. Using voucher codes has been a great way for webhosting providers to increase conversion rates, monitor campaigns and track referrals.

In this article, which I have prepared specifically for webhosting providers, I am going to point out 4 ways a webhosting provider can use coupons to boost sales and increase customer loyalty.

The “Free” Coupon: Let the customer try a hosting plan free of charge for 30 days
I have seen this tactic used many times by companies like Hostgator who offer a coupon code that lets the customer try their plan for free or for $0.01 for a month. There is a good reason the word “free” has become so popular in the industry. It is a bulletproof method to convince potential clients to try out your product for a month – risk free – and upgrade automatically to a paid subscription after a month.

Also, you can increase conversion by “throwing in” freebies. For example, including free domain names into your hosting packages is a smart way to add more value to the customer at a negligible cost to the webhost. Furthermore, many web hosting companies have started to offer promotional codes for free SSL certificates.

Any one of the above coupon deals might be that one final straw that will convince a customer to buy your hosting plan.

Upsell users to high margin items using generous discounts as baits

Let me use the example of Managed WordPress hosting which is popular with many business clients. Typically, a self-managed WordPress Hosting plan in a shared hosting environment goes for about $5 a month. A managed plan can be valued at as much as $20 per month giving you a much bigger margin to facilitate a generous discount. If you discount that by 40% you are more likely to convert business clients on tight budgets, who have no time to manage their own server, from a self-managed to a managed solution.

The Daily Backups Coupon

Running a business is a stressful venture and it’s no surprise that a lot of business owners are dealing with fear and insecurity issues. When it comes to web hosting services, you can take advantage of this situation by reminding your customers that they should take some additional steps to protect their investment. One of the more common ways to do that is to offer plans that include daily backups and other features that help your clients minimize the potential security risks.

Product offers at checkout. Maximizing the “buying” mode

When customers are in the checkout line they have made up their mind about something and they are already in a buying mode. Retail psychologists have figured out ways to take advantage of the customers’ mental mode and maximize revenue.

Brick and mortar retailers often try to sell additional stuff at checkout and it seems to be very effective for them. Things are a little different when it comes to an online web hosting provider, as you have to consider how to best utilise the checkout space. Strategically placing some eye-catching coupons at checkout, such as 25% off SSL certificates, is a way to upsell or cross-sell the client by getting them to add more items in their shopping cart at a click of a button.

However, do not go overboard with using offers at checkout. Your checkout coupons need to be able to push the user towards an impulse buy, but they also need to be compatible to what they are already buying.