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Understand Why Customers Leave Your Domain Name Business

December 5, 2023

Domain names are a recurring revenue source, so when a customer leaves, you’re not just losing a one time sale, you’re losing a customer that could generate revenue for years to come – think of the customer lifetime value and the average term length of a domain name as key metrics contributing to your overall first time and previously renewed renewal rates.

There can be many reasons why customers leave domain name businesses. For example, some customers may be unhappy with the pricing, while others could be frustrated with customer support. Whatever the reason, it’s important for domain name businesses to clearly understand why customers are leaving. Knowing this information can be used to improve the customer experience and reduce churn, ultimately saving you the costs of high customer turnover.

The Power of Data

Data is the key to understanding why customers leave a domain name business.

If you are a Domain Name Registrar or Reseller and concerned about your churn rates, begin by getting curious then create a strategy to better understand your customers’ behavior.

How to get started:

  • Keep a list of transferred-out domain names by month.
  • Perform data analysis on the list of domain names
  • Extract the data results and translate them into meaningful insights that you can visualize via a dashboard or a report.
  • From there, you will be able to begin identifying patterns and trends.

If you need help with this type of reporting or data analysis, let us know – this is exactly the type of support Domainsbot can provide you and your team.

Once you have identified the common causes of churn, use the information to develop effective strategies to reduce the turnover. For example, if through a tech stack analysis, you find that a large number of customers are leaving because they want to use a product or a service that is offered by your competitor, you could develop a product strategy that addresses onboarding relevant value-added services. Or, if you find that a large number of customers are leaving because they are frustrated with your pricing, you may rethink pricing strategies to stay competitive.

An initiative like this requires a commitment to stay curious and open to the results, while staying on track to perform a consistent, ongoing analysis. With the intelligence gained from patterns and trends, you will have the knowledge to prevent potential churn risks.

Next Steps

Create a renewal strategy based on a set of criteria, formulated to identify domain names that match risk potential. This will help create efficiencies in your processes. For example, identify domain names early in the registration cycle, say 3 months into the registration period, that have no product or service attachment which may have potential risks for non-renewal. What can you do? Create a powerful email campaign to upsell an email solution that speaks to the registrant and potentially results in a renewal by making the domain name more sticky.

The goal in this example is to engage with the registrant early into the domain name registration cycle, with the right message.

Additional tips for using data to reduce churn in the domain name industry:

  • Segment your customers: Different customers have different needs and motivations. By segmenting your customers, you can tailor your churn reduction strategies to each segment.
  • Track customer behavior: Pay attention to how customers interact with your products. This information can help you to identify customers who are at risk of churning.
  • Use customer feedback: Customer feedback is a valuable source of information about why customers are leaving. Use this information to identify common problems and make improvements. Use dashboards and reports to communicate internally on these finds for your teams to action on.
  • Personalize your communications: Customers are more likely to stay with businesses that make them feel valued. Personalize your customer communications to show appreciation for their business.

Customer churn is a major problem for any business and it’s no different for a business in the domain name industry. Churn is costly for businesses in any industry and data is a powerful tool to mitigate this recurring risk. Please reach out to to discuss how we can help you with the data and analysis to cut down your customer churn.

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