Web Hosting Firm Bucks Outsourcing Trend
ALBUQUERQUE, NM, - (April 22, 2004) – By joining the trend among more and more industries in moving their customer service and support functions overseas or outsourcing them completely, the web hosting sector may put at risk one of its most valuable building blocks: growth via customer loyalty and referral. FatCow web hosting is standing fast among web hosting firms to buck the trend. This week, FatCow renewed its commitment to keep customer service in house and in country.
Jackie Fewell, FatCow’s CEO, responded, “It really grieves me to see more and more support roles moving overseas or being outsourced. What many companies are missing is that while it’s perhaps a good near term strategy to cut costs, customer service is a major touch point and a lightning rod for branding, customer loyalty, and ultimately long term success. Outsourced or contract customer service just doesn’t have the cultural or brand equity and awareness to pass on to customers. We rely upon a very capable customer service team. The only way to ensure that the team extends the FatCow brand, is through very close interaction with the rest of our company. It may cost us more in the near term, but the long term benefits, coupled with keeping jobs here in the US, make it a win-win decision.”
FatCow’s successful customer service and support group helps to not only engender customer loyalty, but plays a major role in FatCow’s growth engine.
“The FatCow brand is the keystone of our growth model. It has enabled us to increase market share, customer referral rates, and lower overall acquisition costs. Without a dedicated customer support group to help communicate and deliver on the brand promise, we’d be just another hosting company,” said Peter Ziesmann, FatCow’s marketing and development director.
Companies that contract overseas customer service seek to defray one of the highest costs associated with business today—customer service. On average, customer service represents a major percentage of operating costs in the hosting sector. It remains to be seen if outsourcing customer support is a short term tactic to shore up the bottom line, or if in key service sectors like hosting, ISP services, and telecommunications, the practice will result in erosion of customer loyalty and the bottom line.
FatCow’s approach to customer service is demanding on its employees, asking them to multi-task between service, billing, and sales duties. However, by hiring and developing the right people, FatCow has hit on the ultimate road to ongoing success—not by generating a few extra dollars from quarter to quarter, but instead by generating happy, loyal customers.
About FatCow
FatCow is a brand of Net//works! Web Hosting, LLC. Founded in Albuquerque, New Mexico in 1998, FatCow provides shared Web hosting solutions for small to medium-sized businesses and individuals looking for an affordable web hosting option. FatCow’s approach to small business hosting has been proven through tremendous company growth and market response. For more information, please visit www.fatcow.com.
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