Software Monetization Featured Article
Opportunities You Can't Ignore to Make Money via Software MonetizationOctober 02, 2012
By Rich Steeves, TMCnet Managing Editor
According to some, it’s quite easy to make money in the software monetization space. Simply implement a strategy that encompasses cloud, social media, mobile and big data, toss in a few more industry buzz words, and let the cash flow. Unfortunately, it’s not as easy as that.
But as Alan Zeichick of SD Times said at the Licensing Live US 2012 event, held this week in Cupertino, CA (News - Alert), there are several opportunities out there that you simply cannot ignore if you want to make some money via software monetization.
Before explaining those points, however, Zeichick discussed some background information about software monetization. He spoke of the changing expectations of customers, who are used to free software from companies like Google (News - Alert). He also mentioned how companies are concerned with long-term stability and the cost of switching from one software vendor to another can be intimidating.
Lastly, he said companies expect simple administration, seeking out solutions that allow them to make changes easily and on their own.
Simply put, said Zeichick, software companies are looking either to make money or save money for companies – or both. Sometimes it is hard for a company to see the return on investment with their software purchases. This is why software companies need to look for their customer’s pain points, and find ways to help these customers focus on their business-critical processes.
In the end, software companies are not in the software business; they are in the problem-solving business. They need to find ways to add value, whether via eliminating hassles or providing customer benefits from the first day of implementation. With a rapid ROI and a straightforward business proposition, software companies should be looking to handle aspects of business that their customers don’t want to handle on their own.
Thus, Zeichick identified the three biggest opportunities in software monetization. The first opportunity is to break down silos. So many companies have siloed information, locked in their CRM software, product databases, account and product information and many other places.
Software vendors should be looking to break down the walls between these silos.
Second, software vendors should be looking to create self-service solutions. Customers want to be able to make adjustments on their own. They want to be able to add users, features, permissions, employees and administrators as much as possible in a self-service environment, but with the ability to get help when necessary. Software vendors need to keep this in mind when looking at the customer-facing portals, providing clear options for self-service as well as a way to get help when needed.
Finally, Zeichick spoke about companies’ desire to move expenses from capex to opex. Many companies would prefer to pay a monthly fee rather than make a large upfront purchase. However, Zeichick cautioned that these companies need to be flexible, accommodating customer needs whenever possible. With these three opportunities in mind, companies can indeed make more money while at the same time making their customers happier and preventing churn.
In the end, that is a win for all parties, and good for business.
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Edited by Braden Becker
Software Monetization Resource Center:
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