Maximizing the potential of any software product is a function of two aspects; maximizing sales and minimizing the waste investment (optimizing cost). Software publishers of cloud delivered applications don’t have to deal with the challenges of physical delivery of the product, yet their ability to reach all the market segments could be limited. Software publishers can realize greater potential from their offerings by optimizing the mix of their packages, pricing and investment in the right features.
The key to understanding this is to determine the value that your software brings to the users and using that knowledge to package and price your software. The value your software brings to customers varies based on multiple factors including industry, geography, type of user (personal or commercial), and frequency of use. Willingness to pay is directly proportional to the perceived value of your product. Different variants of your products at different price points enables your customers to buy your software rather than turning them away because they have the ability to pay for the variation they will use. The right packaging not only requires experimentation and learning from the market but is also dynamic and continues to change as the market and customers evolve.
Packaging is not the only potential deterrent for selling but usage frequency can be as well. Customers may find it difficult to justify a software purchase that will be used only occasionally or seasonally. By offering consumption based pricing, cloud delivered applications can not only tap a larger segment of customers, but also reach higher potential with existing.
Investing in Right Features
It’s important for product managers to learn about the value that each feature brings to the customer. By increasing investment in high value features and by reducing investment in features that are rarely or seldom used, product managers can maximize the value for every dollar invested in the product.
A comprehensive software monetization solution will help you realize the maximum potential out of your software by enabling you to build flexible product packages, measure usage, and instantly adapt your offerings to meet emerging and evolving market opportunities. Combining all of these capabilities is the secret behind true software monetization that helps increase revenue from your software.