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Software Monetization Featured Article

Cloud-Based Software Licensing a Helpful Tool for Customer Satisfaction

April 24, 2017





The cloud and a services-based economy have fundamentally changed the business landscape, offering companies a host of advantages designed to help them operate more efficiently, increase revenues and gain data and insights about their customers. Customer service is rapidly becoming the top priority for businesses worldwide as a result, and companies are scrambling to improve the customer experience and differentiate themselves and their brands in an aggressive marketplace.


As companies move toward a software and services-based business model, one of their biggest challenges is poor adoption of the new breed of service-based products. All too often, businesses lack insights on how customers are using these new types of products and what their benefits may be. According to a recent whitepaper from Gemalto, “Cloud-Based Software Licensing: Enabling Operational Efficiency, Delighted Customers and Sustainable Competitiveness,” software monetization solutions can address these issues and offer information to help companies better address their customers’ needs and improve their interactions and experience when they engage.

The paper examines the rise of Salesforce.com (News - Alert) and its prominent role as a pioneer of the Software-as-a-Service (SaaS) business model. The company has continued to innovate by regularly rolling out new service capabilities and has grown exponentially in a short period of time. And yet Salesforce has managed to retain high levels of customer intimacy and satisfaction as well as impressive renewal rates. The company has achieved this by taking advantage of software licensing and monetization to monitor and track customer usage patterns and operating metrics as well as to pinpoint new market opportunities.

And Salesforce is not alone, as a new breed of software and services-oriented companies follow suit and build in the right licensing structure to keep close tabs on their customers. Licensing activation, entitlement management and enforcement all enable businesses to monitor and measure application usage to ensure customers are maximizing their purchases and are actually satisfied. Software licensing and monetization capabilities can also enable service providers and ISVs to improve their trial conversions based on usage data, as well as predict and prevent churn. Usage data can also point to opportunities for up-selling and cross-selling as well as help companies make better new product and investment choices.

HP found itself in need of such a solution, as the company was dealing with disparate license generators and incompatible back-office systems that simply weren’t sharing enough customer and usage information. The company was looking for a new software entitlement management solution capable of supporting around 50 technology license generators, 70,000 products and a whopping 3.5 million entitlements.

The company ultimately chose Gemalto’s (News - Alert) Sentinel Entitlement Management Solution (EMS) to automate the processes of licensing fulfillment, activation and management. The offering also helps HP streamline their operations, enforce compliance and receive reporting on customer usage and engagement throughout the software licensing lifecycle. The result is that HP Customer Care is now collecting real-time data about its customers and customer satisfaction has risen from 56 percent to 84 percent.

Cloud-based software licensing and monetization solutions are essential in today’s software and services-based economy. And many offerings, like Gemalto’s Sentinel EMS, contain helpful tools to keep track of customer usage, engagement and satisfaction while simultaneously enforcing and managing the entire software licensing lifecycle.


 
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