November 17, 2021

Hosting companies, Telco’s and Directories are Growing Revenue by Improving NPS

As telcos, domain & hosting companies and directories look to new ways of generating revenue, many are looking to service offerings outside of their traditional offerings. Online digital service solutions are a space that makes sense and companies in this industry have been incredibly successful in extending their product portfolios to include digital services. 


Services such as website design and online marketing (SEO and SEA) have become increasingly attractive and easy for these industries to adapt to. But, outside of additional revenue, these organisations have an opportunity to enhance their customer’s experience and relationships. Customers that purchase these services are reporting a higher level of satisfaction through NPS when compared to the other services and solutions telcos, domain & hosting companies and directories offer.


Better NPS = More Revenue and Higher Retention


Historically these industries have reported low to average Net Promoter Scores (NPS). The telecom industry has an average NPS of 31. The Cloud and Hosting industry average is 40. GoDaddy for example has a current NPS of -10 (as of November 2021)



Telcos also have a retention issue. 64% of customers surveyed in the US claimed they left their telco provider due to poor customer experience. Even though competition in this market is high, and deals and financial incentives to change a provider are constant and favour deal-seeking customers, it is the lack of good customer service that is pushing existing customers away from their existing provider. The correlation between a low NPS and real-life customer satisfaction is clearly real for this industry.


Spotzer Digital monitors the NPS for almost all of its partners. Out of over 2700 respondents surveyed throughout 2021 so far, Spotzer Digital has recorded an NPS average of over 57. This score is across all Telco, Hosting and Directory partners that Spotzer Digital monitors NPS for. This score would place Spotzer Digital partners second against all other industry averages on customer.guru’s NPS tables. For the month of November, the NPS across all Telco, Hosting and Directory partners Spotzer Digital works sat at 71. This score is 22% better than the top-performing industry monitored by Customer Gauge.


Looking at Telco partners independently we see an NPS average of 55.5 in 2021 for their digital service customers and a high of 69 for the month of November. A score that is 122% better than the NPS average for the Telco industry. It’s fair to say that customer satisfaction aggressively increases for customers that engage with their Telco provider for Digital Services.


The London School of Economics discovered a correlation between NPS increase and revenue growth. According to them, an average NPS increase by 7 points correlates with a 1% growth in revenue. Given Telcos enjoyed a score of 24 points higher than the industry average in 2021 across all digital services customers, such an increase in NPS average could translate to a growth in revenue of over 3%. If the current score of 69 was maintained, additional, untapped revenue growth could reach over 5%. For a market estimated to be worth almost $1.7 trillion in 2021 and revenue growth expected to slow down to less than 6% between now and 2028, an additional 5% extra in revenue is nothing to be ignored, in fact it equates to an additional $85billion revenue for this industry.


The digital service industry is expected to grow at a much higher rate when compared to the overall Telco industry. In fact, it is expected to grow at over 3 times the rate of the telco industry in the next 6 years


It is clear that there are improvements to be made in terms of overall customer experience for most industries. However, few businesses and industries are offered the opportunity of improving customer experience by offering customer’s more solutions, and in the process improving their overall bottom line and retention. But, this is the opportunity available for those that can offer customer’s digital service solutions.



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