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Thread: Churn Rates
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07-19-2005, 11:26 AM #1Web Hosting Master
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Churn Rates
What are your average churn rates for dedicated servers and/or hosting?
Ours are driving me mad right now, no matter how much love we give our customers....
If you don't want to give stats, just give a brief overview instead
Thanks!ManageMyServices was sold by me in September 2009. I no longer have any affiliation with this company.
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07-19-2005, 11:30 AM #2Web Hosting Master
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I read somewhere that the average churn rate is between 2-3%
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07-19-2005, 01:07 PM #3WHT Addict
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It greatly depends on who you market to, with some markets your churn rate will be 2-3% just like HiVelocity pointed out, however sign-up rate is rather slow.
Other markets I've seen churn rate is higher (15-25%), and still considered normal for that market. Growth however is very different too, not as slow as with some of the other markets.
It's summer, clients are canceling since they'd rather spend time outside.Last edited by ICALIV; 07-19-2005 at 01:11 PM.
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07-19-2005, 02:56 PM #4Web Hosting Master
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a churn rate of 15-25% is very steep , not a very loyal client base there.
Ceridius Networks Sales
Email/MSN sales@ceridius.com
Ceridius Networks - Reseller of Hivelocity Hosting
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07-19-2005, 03:23 PM #5WHT Addict
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HiVelocity, you're absolutely wrong here
This is in a very different markets than you're in. Consider this:
You're offering Mambo software hosting. People that know what Mambo is are signing-up and are happy to be with you. People that don't know what Mambo is and are interested in trying it - will cancel in 1 hour after realizing it's not for them. Here you go, in no time you'll have 20% churn rate. The other 80% are absolutely loving it because they're familiar with it and were looking for it.
I hope it makes sense for you now.
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07-21-2005, 07:29 AM #6Web Hosting Master
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Greetings:
We average 1 to 2% churn per year.
Thank you.
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07-21-2005, 09:00 AM #7Web Hosting Master
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see chart below
1. type of hosting
a. shared
b. reseller
c. dedicated
2. type of hosting
a. budget/personal
b. e-commerce/business
c. big websites (using managed servers or clusters)
3. type of marketing
a. you got your customers from online promotions
b. customers come because you offer something special
(like cheap windows hosting with free MSSQL)
c. you got your customers using sales agent
if your customers base have (a) of each factor then %30 churn is good, if your customers have (c) of each factor then %5 is high churn and so on ..
[edit] user-base growth is more important than churn in hostig business, if you have %50 churn but your user-base growth (after churn) is %10 then it very good.[/edit]Last edited by 2Mhost; 07-21-2005 at 09:05 AM.
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