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Case Study: How a Web Services Firm Used 'Fanatical' Customer Care to Increase Sales 60% Year Over Year

by Jennifer Natsu  |  
August 7, 2007

Company: Rackspace
Contact: Razil Suarez, Marketing Manager
Location: San Antonio, Texas
Industry: Web services, B2B
Annual revenue: $224,000,000
Number of employees: 1700

Quick read:

With Web hosting becoming a commodity, Texas Web hosting firm Rackspace realized it needed to stand out from the pack. Its founders decided Rackspace would become a different kind of hosting company—one that would stake a claim to "fanatical" commitment to customer service.

But simply making the claim is not enough to ensure the necessary level of service. Hence, Rackspace wove the concept of customer service into its very business structure, ensuring that every employee, from billing associates to IT technicians, had an equally firm commitment to customers.

Company officials even trademarked the term "Fanatical Support."

And it has worked: The firm's reputation for good service has attracted a steady clientele, and revenues grew from $139 million at the end of 2005 to $224 million at the end of 2006. Rackspace now employs 1700 workers, up from just 750 at the end of 2005.

The challenge:

Web hosting is a crowded space. "What we're doing is not rocket science," admitted Razil Suarez, marketing manager for Rackspace, a San Antonio, Texas-based firm that claims to be the fastest-growing managed-hosting specialist in the world.

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