CLICK TO EDIT MASTER STYLE • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level
Increasing Renewal Rates Leveraging Existing Customers to further Grow Business
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CLICK TO EDIT MASTER STYLE Leveraging Existing Customers • Click to edit Master text styles
Registrars across the industry dedicate most of their time and resources in acquiring new customers and increasing new registration volumes. Be it reduced pricing for registrations or domains bundled and offered for free with products like hosting, the focus has always been NEW registrations! That is definitely the way to go – a line of vision on growing the numbers is undeniably the right focus for a business.
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“Not been focusing on Retention and Renewals?”
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“Taking your customers for However, another important area that most Registrars tend to ignore is customer – Fourth level granted?“ retention - ensuring existing customers renew their domains with them and continue Read on!
as long term clients. » Fifth level
“It’s not always about new orders & customers” As all of us know, customer acquisition is way more expensive and resource intensive as compared to customer retention - why not focus on existing customers and ensure that they stick with you. This area holds a tremendous potential and is comparatively easier to tap into as these customers have already chosen YOU over other Registrars. Your customers are most likely to know you, trust you and are open to communication with you. Thus, a few right steps in this direction can definitely bump up your renewal & retention rates (stickitivity quotient).
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CLICK TORenewal EDIT MASTER Industry Rates STYLE • Click to edit Master text styles
The .com/.net renewal rates of the Top 10 Registrars continue to hover around a healthy 70%.
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Let’s take a quick look at the average domain renewal rates of some Registrars and level • Third Registries to give you an idea – Fourth level of the current industry standards. » Fifth level
Source: Verisign
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CLICK TORenewal EDIT MASTER Industry Rates STYLE • Click to edit Master text styles
Verisign as a whole, boasts of an average renewal rate of 72% for the past 4 years !
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Let’s take a quick look at the average domain renewal rates of some Registrars and level • Third Registries to give you an idea – Fourth level of the current industry standards. » Fifth level
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CLICK TORenewal EDIT MASTER Industry Rates STYLE • Click to edit Master text styles
EURid and CIRA have a renewal rate of a whopping 80%!
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Let’s take a quick look at the Nominet is not very far behind with an average renewal rate of 69%. average domain renewal rates of some Registrars and level • Third Registries to give you an idea – Fourth level of the current industry standards. » Fifth level
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CLICK WhereTO DoEDIT You MASTER Stand? STYLE Is the renewal text rate for your Registrar also at a comfortable 70% • Click to edit Master styles or above?
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“Margins on domains are shrinking but they’re an The Top 10 Registrars and several Registries have been maintaining this level and they excellent entry point to upselllevelemploy effective programs to achieve these steady rates. • Third and cross sell a lot more.”
– Fourth level We have enlisted a few direct and in-direct opportunities that open up by focusing on renewal rates for your Registrar business. » Fifth level High Revenue (Annuity Income)
High Renewal Rate
Greater Upselling Opportunity Reduce Transfer Out %
Increased Customer Retention
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CLICK WhereTO DoEDIT You MASTER Stand? STYLE Still not convinced that styles YOU should also focus on renewals? • Click to edit Master text
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“Margins on domains are While the direct impact is the obvious increased revenue from domain renewals, there shrinking but they’re an are not-so-obvious indirect benefits which also have a direct bearing on your top line. excellent entry point to upselllevel • Third and cross sell a lot more.” A domain being renewed, presents you with a longer timeframe and a greater
– Fourth level opportunity to upsell other products and services to the customer. This not only brings in more $$$ but also increases customer stickitivity, as transferring domains and other » Fifth level products is far more complex than transferring just domain names. A customer who has hosting with you is less likely to move out as compared to a customer with just a domain.
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CLICK TO EDIT MASTER STYLE Too! Registries Focus on Renewals • Click to edit Master text styles
Registries have realized the importance of maintaining a healthy renewal rate and have already started working in this direction. We’ve seen some aggressive promotions and campaigns geared towards bumping up Registrar renewal rates.
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“Still not convinced that YOU should also focus on Two of the most popular gTLD Registries announced a promo that offers rebates on renewals?” • Third level new registrations based on the Registrars’ renewal rates for previous months.
– Fourth level When Nominet reached 7 million domains » Fifth levelin August 2008, it launched a renewal awareness campaign for end customers. The objective of this campaign was to increase renewal rates by encouraging registrants to realize the value of their .UK domain. The official campaign site for this initiative is http://www.keepyour.co.uk/ Another popular ccTLD with close to 800,000 names has launched a no-questionsasked, direct discount on renewals for Registrars thereby ensuring that the Registrar doesn’t need to invest in or plan the renewals promotion but can simply offer a direct discount to customers to encourage renewals.
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CLICK TO EDIT MASTER STYLE What can you do? 1st time renewals are key • Click to edit Master text styles
It’s about time that Registrars start considering renewal rates as one of the key focus areas. There is a lot that can be done to increase renewal rates. First-time renewals are key - when a customer renews his domain once, he is more likely to renew the domain name again. Turn first time customers into repeat buyers & increase the average revenue per user over time.
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While the list of strategies you can adopt is endless, here are a few core aspects• that you level Third can look into in order to boost – Fourth level your renewal numbers! Ensure » Fifth levelDomain Adoption “Calculate YOUR renewal rates and act now! They’re your customers – keep it that way.”
In the first year of a domain name purchase, try and upsell other associated services which will ensure actual use & adoption of the domain name – for instance, you can offer a freemium email service or a basic site builder tool which pushes the customer to start using the service & eventually retain the domain at the time of renewal.
Remind Remind Remind! Timely renewal reminders are a must. Another tried and tested way is to offer a lower renewal pricing if the customer doesn’t renew and the domain is close to deletion.
Offer: Buy more for less Happy Renewing!
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A telescopic price structure where you offer lower pricing for greater registration/ renewal terms can also go a long way, as this will encourage domain registrations/ renewals for multiple years.
CLICK TO EDIT MASTER STYLE References • Click to edit Master text styles
VeriSign Reports 2010 * .com/.net ASCI domains only
– Second levelVerisign Domain Name Report – August 2011 • Third levelhttp://verisigninc.com/assets/domain-name-report-august2011.pdf – Fourth level Nominet » Fifth levelDomain Name Industry Report - 2010 http://www.nominet.org.uk/digitalAssets/46541_DNIR10.pdf
.EU Progress Report – Q4 2010 http://www.eurid.eu/files/Q4_2010.pdf
CIRA http://www.cira.ca/nomcmte/en/about.html
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CLICK EDIT MASTER STYLE AboutTO LogicBoxes • Click to edit Master text styles
LogicBoxes is a Web Products and Consulting Company that specializes in providing private labeled, web presence and communication applications to ICANN Registrars, Large Web Hosts, Domain Resellers, ISPs and Telcos. In addition, we also offer consulting and a turnkey SaaS platform which provides end-to-end business automation to our clients.
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LogicBoxes in Numbers:
5.5+ Million Domain Names • Third
– 85+ ICANN Accredited Registrars
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LogicBoxes is also the world's premiere ICANN Accreditation Consultancy provider. Fourth level Through Accreditation.com, we enable Web Hosts to obtain an ICANN Accreditation with minimal time or cost commitments from their side. Over 20% of the world's » Fifth level ICANN Accredited Registrars have been accredited through our consultancy service.
50,000+ Domain Resellers and Web Host CONTACT US: If you have any queries about the contents of this document or want more information on commercials and pricing, please contact us at sales@logicboxes.com. SOCIAL LINKS:
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