Industry Trends

Utility-Model Web Hosting?
Sounds Great!

by Fritz Stolzenbach  • 

About a month ago, I was meeting with the Marketing team, discussing the fact that — while we have a relatively high proportion of customers who will shout from the mountaintops about how much they love ServInt — the vast majority of our customers are silent throughout the length of their stay with us.

This topic was top of mind because we were in the process of designing a full-time staff position dedicated to customer outreach and relationship management, and we were frankly wondering how useful such a position would be if people didn’t actually want to engage with their web host unless something went wrong.

We began contemplating the possibility that our customers see us the same way they see their electric utility — i.e., they only think of us when their service is interrupted, or when they open their bills each month.

From a marketing perspective, this may sound like a bad thing, but it doesn’t have to be.  It’s possible to offer a commodity service on a utility model and still have your customers love you — and one sector of the utility industry is particularly good at this.

The American rural electric utility industry is made up of about 900 electric cooperatives — small, non-profit, consumer-owned utilities that serve the needs of the 13% of Americans who live in areas largely beyond the reach of investor- or municipally-owned power companies.  Because these co-ops are owned by the households and businesses they serve, they place an extraordinarily high emphasis on providing impeccable, personalized customer service.

These co-ops invest in community business development, constantly enhance their infrastructure with systemic upgrades, and (despite their small size) are frequently the first in the industry to deliver new technologies that lower costs for their customers.  The result is a peculiar anomaly in the business world:  these are regulated monopolies that enjoy fierce customer allegiance.

ServInt isn’t a cooperative.  But it turns out we operate a lot like one:  frequent, free infrastructure and service package upgrades, customer/community-centric decision making, personalized service geared towards making our customers’ businesses succeed, and so forth.  The similarities really are striking — and because of that, I’m not afraid of the similarities between us and the electric utility industry when it comes to customer engagement and feedback.  We love talking to our customers, but a healthy silence can be a good thing when it’s coupled with fierce loyalty.  Bottom line:  if it turns out that web hosting is seen as a utility-grade service these days, at least I know we’ve modeled our business after the right segment of that industry.

Photo by ykanazawa1999

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Comments
  1. I am one of his clients quiet. Sometimes I do not say anything in a year unless support requests. But you are right: They have earned my loyalty and those referenced whenever I can.
    Roberto Bolivar /
  2. "people didn’t really want to engage with their web host unless something went wrong" "healthy silence can be a good thing when it’s coupled with fierce loyalty" So true of any web host. I'm not a customer of yours, but I like the way you do things in general. Keep up your good work!
    Pothi Kalimuthu /
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Fritz Stolzenbach

Fritz Stolzenbach

Vice President of Marketing and Business Development, ServInt

For the last 25 years, Fritz Stolzenbach has led marketing and corporate communications efforts at a wide range of Internet, telecom, entertainment and utility industry enterprises.

In the mid-1990s, Stolzenbach helped build the largest U.S. distribution network for satellite television provider DIRECTV. He then joined the management team that launched the HughesNet satellite internet platform, as well as Spacenet’s Connexstar wide area networking service. By the mid-2000s, Stolzenbach was Global Director of Marketing for the world’s largest satellite fleet operator, Intelsat Ltd. From 2006 until 2010, Stolzenbach was co-owner and CMO of his own multimedia production company, Asparagus Media Inc.

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