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Why UX is Critical to Software Monetization

September 19, 2017





People have become accustomed to using the online tools of their choice to communicate, manage their finances, shop, and many other things online on a daily basis.  Businesses are increasingly relying on connected technologies too. They use technology to reach their prospects, cater to their customers, gather valuable insight, deliver their products and services, and increase the efficiency of their own operations.


That’s different than how technology adoption has typically worked.  In the past it was businesses that adopted technology first, and then it sometimes trickled down to consumers. But smartphones and apps put consumers in the driver’s seat, and then businesses started to realize that they needed to buckle up for the ride. This new trend is known as consumerization.

Because digitization gives us all quick and easy access to online tools and information either for our personal use, or as end users of a solutions or a business applications at work- we have become used to getting what we want immediately, with a minimum of friction. So when we don’t have that experience, we go elsewhere to find the user experience we’ve become accustomed to. 

That’s why, as Gemalto (News - Alert) notes in its recent eBook “The Critical Role of UX in Software Monetization,” we’ve seen a shift from delivering products or services online to delivering experiences .

“The reality is that consumerization is rewriting the playbook and upping the ante for organizations that are developing digital products and services for business users,” Gemalto notes. “In our experience-centric world, offering anything less than a world-class digital experience to customers, partners, and employees is creating a business liability rather than a competitive advantage.”

Software monetization is a key aspect of digital transformation for businesses. As Gemalto explains, it can be defined as the adoption of any variety of measures an organization takes to increase the profitability of its intellectual property, in this case, software. That can include anti-piracy efforts, creative pricing, managing software entitlements and licenses, and improving operational efficiency by automating and integrating the back office.

So how can businesses ensure their software monetization efforts deliver positive user experiences? According to Gemalto, they can start by getting customer input and developing a deep understanding of each phase the customer lifecycle. That should include knowing what the customer needs at each stage, and what their own sales, marketing, and support teams need to do for them at each stage. Businesses need to consider both internal and external systems in this exercise, Gemalto adds.

For example, software licensing management for software monetization is a tool independent software vendors or end user organizations use to control where and how software products can run. That includes managing software licenses and entitlements, activating software products and features, and tracking and managing software usage data, and renewing software and device licenses, says Gemalto. Sales process related to this can be tricky for software and intelligent device vendors because software monetization efforts require marketing, product development, customer service, and sales, and operational groups to overlap, it says. And it points out that businesses should be sure to offer flexible packaging and customization so customers can pay for only the specific features and software products relevant to their needs.

Gemalto adds that the registration process of the lifecycle also can be challenging because it involves of lot of activities – including purchasing, downloading, installing, activating, and using the product. “Developing a streamlined, fully integrated registration exiernece that gets your customers up and running quickly and easily is a mission-critical goal at this stage,” according to Gemalto.

While user experience may seem like just the latest fad, Gemalto explains that it needs to be a real concern for business because it translates directly to dollars and cents. Companies that provide top-notch user experiences outperform their peers, tend to be more efficient, reduce their costs and risk, and enjoy other benefits.

Gemalto shares these key data points:

  • The top 10 customer experience leaders outperformed the S&P with close to triple the returns, at a cumulative total of +43% .
  • UX can reduce development in efficiencies:
  • UX helps define usability and customer requirements upfront, before development begins and can reduce rework by up to 50% .
  • UX and its focus on user testing can help reduce adoption risks:
  • 72% cite effective user adoption as the key to success (vs. 16% who cite software functionality).

During LicensingLive! 2017 in Cupertino, CA (News - Alert) on Oct. 23-25, you can attend a live session and learn more about Consumerization and Why Your Customers are Calling the Shots. Join this session to understand why “consumerization” is taking the B2B world by a storm, learn from a customer case study how their focus on their customers improved their business and understand why instant delivery, usage based pricing and customer self-service should become the base of how you deliver your products.    Register today




Edited by Maurice Nagle
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