May 30, 2008 – (HOSTSEARCH.COM) – WebhostSHIFT (http://www.webhostshift.com) today launched its first-of-a-kind, value added voucher service for Web hosts looking to reduce costs associated with customer churn and tap into a targeted stream of prospective customers looking for a new hosting provider.
With the new service, WebhostSHIFT enables Web hosts to offer vouchers to customers who have decided to terminate their account for whatever reason—from dissatisfaction to a change in technical needs. These vouchers, which are fully transferable between individuals, can then be redeemed for account credits from other Web hosts in WebhostSHIFT’s online marketplace. When the voucher is redeemed, the referring Web host receives a commission in a similar model to a traditional affiliate program.
Revenue generated from voucher redemption can be used to offset costs associated with customer churn and can allow Web hosts to recover initial investments in customers, such as affiliate program payouts or free domain name offers. Without WebhostSHIFT, Web hosts have virtually no ability to recover these costs.
“We have created a service that addresses the cardinal weakness of any subscription-based business—customer churn,” said Jimmy Tanzil, WebhostSHIFT founder and managing director. “WebhostSHIFT vouchers act as an important tool for hosting providers on a variety of levels. Most fundamentally, our vouchers allow hosting providers to demonstrate faith in the quality of their services, similar to the added credibility attached to money back or satisfaction guarantees. Equally important, WebhostSHIFT vouchers create an entirely new, unexpected revenue stream for Web hosts when customer churn is simply inevitable.”
In addition to offering vouchers to customers terminating their account, Web hosts can participate by listing their company in the WebhostSHIFT marketplace. Companies in the marketplace are shown to customers looking to redeem their vouchers and setup a new hosting account. There are more than two dozen Web hosts currently listed in the marketplace.
Launched this year, WebhostSHIFT is an innovative new service created exclusively for the Web hosting industry. By monetizing customer churn and creating a new venue for customers to seek new hosts, WebhostSHIFT offers strategic advantages for small, medium and large hosting providers.
