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Getting Down to Specifics with Software Monetization

February 07, 2019

Software companies today are putting an emphasis on monetizing their software by introducing new ways to generate revenue by providing their customers with a  portfolio of packaging manage  and deliver their products.  Because no two companies are the same, no two monetization strategies will be the same. Where to start?




Experts advise that companies should try to keep the conversation about specifics and avoid nebulous goals like “We want to go into new markets.”   Here are a few tips.

The Four Goals of Software Monetization

Specifically, software monetization should have four goals that will ultimately drive real business value: revenue generation, operational efficiency, business insights and customer satisfaction, according to Shlomo Weiss, Senior VP of Software Monetization for Gemalto during LicensingLive! in November (see the video of the complete presentation here.) Weiss describes that one of the most important questions Software companies need at the start of a license management project is- what is the value we are delivering to our customers?   

“If they’re just talking about general things, for example, like self-service or mention Internet of Things or automation, it’s really hard to quantify what impact that would have on their business”  he said. “So we begin all of our engagements asking ask about the value to the business, and it typically ends up in these four buckets; [revenue generation, operational efficiency, business insights and customer satisfaction.” But it doesn’t end there, says Weiss.

“We go to the next level and we usually realize that there are different people we’re talking to in an organization, and each comes with their own perspectives,” he said. “One might say they want to drive revenue, and for another it’s customer experience. It really depends on where they’re sitting within the organization.”

Product management might have one goal when it comes to monetization, whereas operations or finance will have a different idea of what monetization means. Nearly everyone’s goal fits  into one of the four buckets.

Creating revenue streams. There are typically three categories here: generating brand-new revenue, minimizing revenue leakage, and maximizing revenue opportunities.

Operational efficiency. This can be broken down into four categories: simplifying business processes, ensuring business continuity, minimizing business risk and reducing operational overhead.

Business insights. To better monetize your software, use it to gain a better understanding of customers and operations. Break it down into three goals: anticipating customer attrition (and avoiding it), identifying revenue loss (and stemming it), and knowing your customers so you can better sell to them. 

Customer satisfaction. Improve your revenue by raising customer satisfaction. This might include giving customers more flexibility, keeping customers up to date, and delivering customer self-service, which can also improve operational efficiency.

By focusing your software monetization goals in these four places, you can better get down to specifics, and make a list of ways to achieve them. It will also help you understand how everyone’s perspective and departmental duties can help you achieve those goals.

It’s all about getting down to specifics and understanding the key business metrics that will software companies can use to measure success and quantify value.

To request the new business value calculator, email marcy.clapp@gemalto.com




Edited by Maurice Nagle