renewal discounts for existing customers

[cbassett03]

I don't know of any discounts or other incentives for existing customers when they renew, but even a 10% discount for a 1 or 2 year hosting plan should be considered, because I think this would help with repeat business. Because from what I know now, you could simply cancel your website and signup for a new one when the old contract is up if you don't plan to renew (and apparently I've found that you can then get the new customer benefits)...

[provida1]

Originally Posted by cbassett03

I don't know of any discounts or other incentives for existing customers when they renew, but even a 10% discount for a 1 or 2 year hosting plan should be considered, because I think this would help with repeat business. Because from what I know now, you could simply cancel your website and signup for a new one when the old contract is up if you don't plan to renew (and apparently I've found that you can then get the new customer benefits)...

I have to agree with this, it really does annoy me when I see offers such as 75% off all plans (black friday) yet no offers/discounts are ever (that I know of) their for existing/loyal customers.

[cbassett03]

With smaller sites, it may be economically beneficial for someone to cancel their account at the end of their contract, and sign-up for a new one using the New Customer benefits (to some, this may be extreme to save a few bucks, but if you're getting a 3 year plan or something, it can add up over time). Even if they had a window of time that you could renew your plans at a discount (sort of like what Verizon does with their existing customers: offer them a discount on a new phone for signing another 2 year contract). Many people take advantage of this, and I think that hostgator could gain more customers and retain more people if they gave their loyal customers a reason to stay with them (other than the obvious excellent support, features, and server up-time). I don't think a 10% discount is wrong at all.

[Excelsior]

I highly agree with this recommendation.

[FFH]

I totally agree!
Just about every other company I use online gives discounts to loyal customers.
With all the "cheap new kids on the block" offering amazing deals it would be a way of rewarding your customers that support you and take away a little of the temptation to jump ship for a cheaper deal.

We all know it costs more to attract a new customer than it does to keep the one you have - a little chunk of that saving passed our way would make everyone happy.

[alemcherry]

Everybody seems to agree on this, but the question is - would HG listen?

[rtw]

I too agree on this. Hostgator should definitely put a discount on the renewal of hosting packages. atleast a 10% discount would be a cherry on the cake.

[computergeek7632]

Yes please!

[a2purn]

Yes please !!!!! its fair, when opening a new acc get a discount, why not for renewal
Maybe this would even be better for relationships

[keonda]

I agree that loyal customers should be rewarded with something. I had same discussion with cable/phone companies. They usually listen and give me some offer if I bother them enough about how unfair is that we loyal customers get nothing... etc.. try it. I hope Hostgator offers something in the future for loyal customers

[EarlyOut]

In my experience, when companies are pressured into doing something like this, here's what usually ends up happening....

Remember, the company's bottom line can't change. If they give a discount to everyone, they lose money. They have to make it up somehow. So, instead of charging, say, $10 a month, they charge $12.50 a month, and offer a 20% discount to new customers (to attract them in the first place), and a 20% discount to loyal, renewing customers (to reward them for staying). So everyone is still paying $10 a month.

There's no magic.

[gwyneth]

Originally Posted by EarlyOut

In my experience, when companies are pressured into doing something like this, here's what usually ends up happening....

Remember, the company's bottom line can't change. If they give a discount to everyone, they lose money. They have to make it up somehow. So, instead of charging, say, $10 a month, they charge $12.50 a month, and offer a 20% discount to new customers (to attract them in the first place), and a 20% discount to loyal, renewing customers (to reward them for staying). So everyone is still paying $10 a month.

There's no magic.

Moreover, HG doesn't raise rates as long as you keep the plan.

Even more important, it improves plans without increasing rates (not just the obvious space and bandwidth--for resellers--but applications allowed), and unlike many companies who offer bigger packages to new customers, HG changes old customer accounts to match.

That's a lot more valuable, IMO, than a couple of bucks off renewal, and a lot nicer way to indicate that current customers are valuable.