Why High Customer Retention Matters in Hosting – RoseASP 97.4% Retention

Why High Customer Retention Matters in Hosting – RoseASP 97.4% Retention

Solution providers and customers should put high customer retention rates at the top of their list of considerations when selecting a hosting provider.

Consultants and solution providers know that when they partner with a cloud hosting provider to deliver enterprise resource planning (ERP), it is critical to partner with a hoster that enjoys a low customer churn rate.  Churn is the percentage rate at which customers cancel subscription to any service over a given timeframe.  When their reputation rests on a hosting partner’s service levels, solution providers make low churn a high priority.

Industry standards consider a five-percent churn rate extremely low for Software as a Service (SaaS) providers. In 2014 RoseASP excelled well beyond the industry expectations with a customer retention rate of 97.4-percent  (or a customer churn rate of less than 2.6-percent).

But when businesses are selecting new ERP systems and vendors, do they put high customer retention rates at the top of their list of considerations?  If not, they ought to.

Post-sale service is a critical part to a successful ERP cloud deployment. It’s also an important requirement to help customers achieve a greater return on investment from their new system.

The rate of change in technology these days is staggering.  Long gone are the days when a business could get by with aging systems for years and years.  So choosing a provider with a long reputation of high customer retention, means businesses are more likely to see long term ROI as their hoster is able to adapt and meet the customer’s needs as those needs change.

Here are some key questions business customers and solution providers should ask when choosing a hosting provider.

  • Does the hoster lose existing customers as fast as they add new ones?
  • Does the hoster work closely with customers to agree upon a Service Level Agreement that meets customer needs?
  • Do customers have multiple ways to contact their hoster for support, including phone, chat or video conference? If not, businesses may find their hoster doesn’t provide the level of support they need or they may even suffer unexpected fees for after-sale support.
  • Does the vendor offer a full range of customer support skills and capabilities? It may seem strange, but many hosting companies have little-to-no experience or training on the solution they host. Expertise with the software you are actually planning to launch in the cloud is crucial.  Even fewer hosters understand and support their customers’ compliance requirements, including SOX and HIPAA regulations.
  • And finally, ask if the hoster has experience with both on-premises and cloud-based ERP solutions? This will ensure you get the best service to meet your cloud needs and a smoother implementation.

RoseASP provides flexible cloud and hosting solutions for Microsoft Dynamics AX, GP, NAV, SL and CRM on Windows Azure and in RoseASP’s private cloud, available through Subscription pricing with a comprehensive Service Level Agreement. Since 2000, RoseASP has hosted systems for small and mid-sized companies and a growing number of Microsoft Partners around the world. RoseASP specializes in FDA, SOX, and HIPAA cloud compliancy for heavily regulated industries and publicly traded companies. With a highly skilled and experienced team of experts in hosting financial and accounting systems and related modules, RoseASP takes pride in customer service and has been named Microsoft’s Cloud Partner of the Year for SMBs.

Learn more about selecting cloud hosting partners.

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