Originally Posted by MarkPoppen
@Rdio_Ch That depends. If it makes the difference between keep a client and losing him because he can get a better deal elsewhere, you're better off giving a discount than to lose the client completely.
I'm just looking at it from a customer's standpoint, because I've been one for years before I got in the hosting business. Something Godaddy did/does really well, is retain customers by giving them discounts in pretty much every renewal email they send. "Oh, 20% off? Might as well stay" instead of "I wonder if I can get a better deal elsewhere"..
I'm really on the fence on this topic. Obviously, nobody is in business to lose money, but are you losing less by diving a (small) discount on renewals?
Oh, don't get me wrong, I never stood against bonuses for loyal customers, of course its better to give a discount and keep the love. I am talking about a specific bunch of clients who are well prepared to constantly jump hosts looking for the best deal - the type of "How come I see a 50% discount on your website but I only get 30% off my renewal. Why shouldn't I just cancel my account and create a new one?". Putting myself in the clients shoes is something I do on a daily basis (don't we all) but sometimes the opposite has to be done so the client can understand that getting great service and support does have its costs and they are still way lower than signing for a $1 host and losing clients constantly because of downtimes.
The same I implied earlier and later Artashes built on - innovations and upgraded services. Those also come at a cost and even so this cost very rarely reflects as a higher price for the end customer. So its really a two-way process - its perfectly natural to have some demands, but you should also give appreciation where appreciation is due