Customer service is the most important consideration for organisations when choosing a managed hosting provider, says a recent report from market research company Vanson Bourne. Although cost (50%) and flexibility (45%) are important criteria for prospective customers, 71% say that customer service is the key decider when assessing a third party to manage their Internet presence. Service levels are the next important factor, cited by 60% as a key decider. According to Rackspace Managed Hosting, which commissioned the research, the finding that 50% of respondents do not use external managed hosting suggests that the market is immature, but with "tremendous growth opportunities". The focus on service and support, says Rackspace, illustrates why customer churn rates in the web hosting sector are high. "Customers are more likely to change third party providers because of bad customer service rather than bad products," says the company.
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