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FGTH · 03-06-2004, 08:50 AM

Here's an inside scoop on GoDaddy's operations, performance and their strategy.
Company: GoDaddy.com
Annual Sales: $25 Million
Employees: 340
President: Bill Parsons
Marketing: Staphanie Heck
PR: Denise Seomin
Sister Company: Wild West Domains
Spin-off: Starfield Technologies

I'm from Scottsdale AZ, GoDaddy's headquarters, and have been a customer since they first opened shop.

Strategy:
"Walmartized business" - Maximize marketshare by underselling all competition and recouping profits through sheer volume and reduced operating costs. In other words, Godaddy offers the lowest fees for domain registration and transfers, but has the poorest customer support system.

Barriers:
Low margins. Competing companies that cannot sustain itself with equally low margins will eventually either be forced to reduce their margins or exit the business.

Growth:
Scale-out by creating new brands, such as creating sister companies that the same services.

So how does Godaddy.com continue operations when their margins are so low? They've reduced their call-center's capacity to support customers. Although this reduces short-term costs, the long-term effects are negative since the cost of retaining a customer is much lower than winning one back. In an attempt to minimize customer issues and turn-over, Godaddy has re-worked its website several times to improve user experience.

Major issue:
Extremely poor customer support and poor domain expiration policies.
Customers with expired domains are charged $80/domain to re-purchase them.

Case Study 1:
In a one month sampling of 100 telephone support calls, customers were placed on hold from 25 - 45+ minutes. 25% of customer calls were dropped out of queue.

Case Study 2:
Over the same period, 50 support emails were sent to Godaddy. The average response time was 1-2 hours. The average number of exchanged emails was 6 per issue with and without resolution. Emails were not read carefully by Godaddy customer support. The initial responses were from a list of canned answers that neither addressed nor solved the sample issues.

Overall:
Godaddy offers the lowest prices for domains.
Website user experience is below average with confusing and inconsistent layout and navigation.
Customer support is extremely poor.

03-06-2004, 08:50 AM	#23 (permalink)
FGTH Contributing Member Join Date: 03-06-04 Location: NY, CT, CA, AZ Posts: 479 iTrader: 0 / 0% Latest Blog: None	GoDaddy Information Here's an inside scoop on GoDaddy's operations, performance and their strategy. Company: GoDaddy.com Annual Sales: $25 Million Employees: 340 President: Bill Parsons Marketing: Staphanie Heck PR: Denise Seomin Sister Company: Wild West Domains Spin-off: Starfield Technologies I'm from Scottsdale AZ, GoDaddy's headquarters, and have been a customer since they first opened shop. Strategy: "Walmartized business" - Maximize marketshare by underselling all competition and recouping profits through sheer volume and reduced operating costs. In other words, Godaddy offers the lowest fees for domain registration and transfers, but has the poorest customer support system. Barriers: Low margins. Competing companies that cannot sustain itself with equally low margins will eventually either be forced to reduce their margins or exit the business. Growth: Scale-out by creating new brands, such as creating sister companies that the same services. So how does Godaddy.com continue operations when their margins are so low? They've reduced their call-center's capacity to support customers. Although this reduces short-term costs, the long-term effects are negative since the cost of retaining a customer is much lower than winning one back. In an attempt to minimize customer issues and turn-over, Godaddy has re-worked its website several times to improve user experience. Major issue: Extremely poor customer support and poor domain expiration policies. Customers with expired domains are charged $80/domain to re-purchase them. Case Study 1: In a one month sampling of 100 telephone support calls, customers were placed on hold from 25 - 45+ minutes. 25% of customer calls were dropped out of queue. Case Study 2: Over the same period, 50 support emails were sent to Godaddy. The average response time was 1-2 hours. The average number of exchanged emails was 6 per issue with and without resolution. Emails were not read carefully by Godaddy customer support. The initial responses were from a list of canned answers that neither addressed nor solved the sample issues. Overall: Godaddy offers the lowest prices for domains. Website user experience is below average with confusing and inconsistent layout and navigation. Customer support is extremely poor.