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Champ Mitchell

2007-03-21

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Champ Mitchell,
Chairman and CEO, Network Solutions

Q1:Could you tell us more about your position at Network Solutions?

Iam Chairman and CEO of Network Solutions, a leading provider ofonline products and services for small businesses.I oversee allfacets of the company with the support of a very smart and talentedmanagement team.

Q2:Why did Najafi Companies decide to sell Network Solutions to theglobal private equity firm General Atlantic?

Overthe past 3 years, Network Solutions has generated sustained andaccelerating double-digit revenue growth.As we became recognized asa market leader, Najafi Companies began to receive unsolicited offersfor its stake in the company. Najafi Companies believed the timingwas right to capitalize on its investment and accepted GeneralAtlantic’s offer to purchase its interest in the company.

Q3:Will the new ownership affect Network Solutions and how?

GeneralAtlantic wants to see us continue to grow our business by enhancingand expanding our product set, continuing to provide our customerswith an outstanding customer experience and acquiring new customersthrough new channels of distribution.They also have a willingnessto fund acquisitions to help grow our company and expand our productsand services.

Q4:What challenges will the company face with General Atlantic as itsnew owner?

Thereare two. First, we will continue to grow at high rates. Growth alwayspresents a challenge, but it is one we have handle so far and we willas we go forward. The second challenge is finding quality acquisitiontargets that share our passion for excellence, including the samecommitment to customer care and support.

Q5:Will your role in the company change?

Iwill continue to be the Chairman and CEO of the company and continueto oversee the company’s operations.

Q6:Tell us more about the transformations of Network Solutions throughthe years?

Therehave been so many transformations in the 28 years this company hasbeen in existence; however, some of the most notable changes havetaken place in the last 5 years.I came to Network Solutions inAugust of 2001 and this company was losing market share rapidly,hemorrhaging cash and our customer service was the worst in theindustry. With a tremendous amount of hard work and the dedication ofa great team of employees, we were able to turn this company around.First we had to fix fundamental problems with the operating platformand completely rebuild customer service with people who cared aboutthe customers’ experiences with us. We also had to become cashpositive. This took us two years. Then we had to begin thereinvention of Network Solutions from a domain name company to theleading provider of web based services to small businesses. To dothat we had to not only have a highly reliable platform and the bestcustomer service in the industry, we had to add drastically to ourproduct portfolio, and we had to own and operate core products toguarantee the customer a good experience. We have just completedthat. The result is that today a majority of our cash revenue comesoff of products other than domain registration and renewals and ourbase of small business customers is growing rapidly.

Thenew products that were added last year, particularly the bestecommerce package in the industry and the broadest and best qualityonline marketing suite of products, will not only continue toincrease our products per customer, but become strong differentiatorsthat mark us as best of breed. That is why we have seen such aterrific uptake of these products by our existing 3.5 million smallbusiness customers and the accelerating increase of that smallbusiness base.

Today,our focus remains on small to medium sized businesses and our currenttop-line growth rate is 30 percent. It is the combination of productexcellence and breadth of our offering along with superior customerservice that is totally free and available 24/7 that now makes us thebest one-stop-shop for a small business. Our customer service is thebest in the industry and we are recognized by J.D. Power andAssociates, for providing our customers with an “outstandingcustomer experience” for the second consecutive year, which is atremendous accomplishment. It is also available 24/7 and you do notpay for it, not even for the call. It is part of what you get frombeing a Network Solutions customer.

Q7:Will the deal influence Network Solutions' employees?

Oneof the many reasons General Atlantic took an interested in investingin Network Solutions is because of its phenomenal team of employeesand the significant growth and financial performance we have achievedin the last three years. This change of investors will fuel ourgrowth and provide our employees with more opportunities to broadenour product portfolio.

Q8:What do customers have to expect from Network Solutions' acquisitionby General Atlantic?

Ourcustomers can expect us to provide even more products and servicesthat small businesses need to establish and grow their companiesonline.In addition, our customers will continue to receive thebest quality customer service in this industry, and to have itavailable without charge 24/7.

Q9:How do you see your company's expansion in the near and in the farfuture?

Wewill continue to enhance and expand our products, and we will focuson broadening our market reach through the expansion of new channelsof distribution and customer acquisition.

Q10:Tell us more about Network Solutions' determination to bring the bestservices to its customers.

NetworkSolutions is acutely aware of the wide range of service offeringsthat exist in the online market space.  We believe that inorder to succeed as the premier provider in today's market, and morespecifically the small business customer segment, we mustdifferentiate ourselves on two key business imperatives: productand customer support.   Product differentiation for usrequires not only the broadest range of products, but the bestquality products to be found by small businesses. Four years ago wefound ourselves in the unenviable position of having a bulk of ournon-domain name service offerings outsourced to other providers. While that position allowed us to save in the development area, itleft us unable to directly control the quality and capability ofthe offerings on behalf of our valued customers.  That hasall changed.

Sinceour departure from VeriSign (2003), we have pursued a highly focusedstrategy: develop or acquire best quality product offerings that canscale to meet our stringent performance criteria for millions ofcustomers, develop them in every area of customer need, back them upwith exceptional customer service and offer them at a competitiveprice.  That strategy has netted impressive improvements in ourproduct set and, more importantly, in our customer satisfactionlevels.  Over the last two years Network Solutions investedheavily by purchasing a hosting and email provider, InQuentTechnologies, in 2005, and buying the premier hosted e-commerceoffering, MonsterCommerce, in 2006.  In addition, we alsointroduced our own branded digital certificate offering, a wide arrayofonline marketing services, "Do it For Me" website andlogo offerings and the world’s first secure domain based, web-mailenabled secure email offering.

Onthe customer service front, we have achieved equally impressiveresults.  In 2005 our call center was first certified by J.D.Powers and Associates, for offering our customers an “outstandingcustomer experience.”They recognized us again in 2006.We wererunners up in the national American Business Awards, which recognizeoutstanding customer service performance, and we achieved a customerservice satisfaction level of 84%.

Insummary our strategy is working, but it is far from complete. The online space is continually evolving.  In order to realizethe full potential of our investments we must maintain and improveour products as well as be constantly vigilant about what newofferings could save our customers time or help them make money.

Q11:Can you tell us if the company is about to launch new products andwhat they are?

Wejust launched SiteSafe™ Extended Validation Certificates, toprovide our customers with a new level of Secure Sockets Layer (SSL)certificate, which offers the highest level of security andassurance.And over the course of the year we will continue toenhance our current products and introduce new services.

Q12:What does Network Solutions do to keep its existing clients and howwill you recommend the company to potential customers?

It’ssimple really.We provide our customers with quality products andservices that perform as advertised and are supported by our free,24/7 real person customer service to give the best customerexperience in the industry.

Q13:What makes Network Solutions different from the other providers ofInternet services?

Ourcustomer service support, which has been recognized by J.D. Power andAssociates for providing an “outstanding customer experience” forthe second consecutive year; and the fact that we provide thebroadest range of products and services for small businesses toestablish and grow their companies online in the industry. We providethis breadth and this quality of product and service at a scale thatis unparalleled in this industry.

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