Webhosting is a market that changed quite radically with the surge of hyperscallers (AWS, Microsoft Azure, Google Cloud Platform): The same got divided into three different tiers and has been pressured due to the different sets of technologies evolving within web development. Our client, one provider of low-tier services within Webhosting, wanted to expand to the nordic market and as such needed strong leverage - since the same market is already dominated by three major players when it comes to low-tier Webhosting services.
The devil is in the details
The first overlook
In order to enter a new market, any company needs to have a couple of things in mind: (1) Difficulty, (2) Consumer consumption criteria, and (3) Competition offer. In the case of our partner, 1 and 3 were extremely high, but the second topic was revealed to be the key to entering the market and dominating. Research through Nortb clients who use low-tier Webhosting services revealed that among them, there was a criterion to decide which Webhosting provider they would use + 1 common trait > all of them were unsatisfied with the customer support from the providers due to:
Lengthy response times
70% success rate in solving problems
Unsecured Webhosting (SSL was charged quite pricey)
Long handling times
With the above 4 points and the client criteria, we had now arrived at the Added Value Proposition (AVP) that our partner could use to penetrate the market.
The volatility of consumer criteria
Unfortunately for our partner, the path was not yet complete. Due to the extreme change and innovation in web development, the end consumer decision criteria tend to change quite often. As such, the business model required the constant feed of consumer thoughts and concerns, so that the offer could be adjusted according to the consumer needs, thus making our client the most appealing in the market.
A digital ecosystem that catches Consumer questions on search engines
Since this project required to have constant control over consumer questions, nortb developed to our client an AI model that self-learns to search search engines APIs (trends, search, keywords, forums, ads) and social media for keywords related to consumer questions about Webhosting and web development. The raw data is then stored in a data lake, which a second ML script filters and stores in the data warehousing according to user questions belonging to the criteria. Last but not least is the latest ML script that filters the data warehouse for new items and pushes them into the data layer to be converted into insights, which lead to adjustments in the business model (ex. Pricing). This ecosystem provides then market leverage to our client since a complete feed of insights related to the consumer criteria is being constantly provided.
Speed, Security, Simplicity
In order to gain speed, simplicity, and security our partner chose nortb for implementing the project and ecosystem. An important step for our client was to hold all the data and be compliant with GDPR. As such nortb used its team Datacrio to guarantee the data security and regulation of all ecosystems. The ecosystem was developed in MySQL, python, and botnet, being the AI and ML hosted in three Microsoft Azure VM’s D1s. The implementation process took 2 weeks, plus 3 weeks of analysis and learning to gather the most important data for our partner.
“The expertise of nortb enables solutions that we never thought were already possible in our times. " - partners chief technology officer
The surplus of such innovation - Low marketing costs
In the sequence of the good fortune of our client, we found another key element coming out of the ecosystem. We knew already where the customers were looking for information and what information they were after. By placing some automated bots replying to the most common answers together with some low-cost ads, our partner managed to get 243 nordic clients during the first 4 weeks after launch!
Optimising the present and the future
Our client ecosystem gives leverage over the Nordics Webhosting market that adjusts itself according to the end customer consumption criteria. The same ecosystem keeps giving value to our partners.
The thought of expanding such a system to an hyperscaller enterprise dimension would be a future challenge however nortb will wait until its partner arrives in that dimension.
Our partner wanted to expand into the Nordic markets. Their offer is based on low-tier webhosting providing services, and the client wanted an environment that helps positioning as market leader by understanding the consumer criteria and needs.
Based on different sets of analytical data, the client can now adjust its offer to the set of main criteria that affects the decision when choosing webhosting on the internet. As a result, the client has leverage over the market competition, since most of the competitors offer a constant pricing and a common value preposition. From the extracted data, our client could create as well a unique value preposition based on the customer doubts and searches.
Data layer of consumer trends that understands consuming criteria.
12% market dominance within the first three months upon entering in the nordic market.
Superior offer compared to the market standard offer since the same adjusts to the criteria of the customer. Pricing done by the used minute which none of the competitors was offering. The partner in the first month was able to acquire 243 clients, with a 104% increase during the second month.
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