Today, one might argue that the most important driver of growth and survival is innovation. Yet successful innovation— whether measured by the increased number or quality of ideas, or simply in dollars and cents—often feels like an elusive target.
When it comes to building products, companies, despite their best of intentions, often end up focusing the majority of energy on designing and building innovative products, while failing to reach their revenue goals, putting profits and survival at risk. Why does this happen? More often than not, these companies focus on pricing and marketing after – as opposed to before – the product development phase.
There are no one-size-fits-all solutions. Customers have diverse purchasing processes and buying needs, thus customer segmentation is crucial when designing products. By incorporating a software monetization approach into your product strategy, product managers can find new ways to package, price new products that reflect differences in a customer’s willingness to pay for a new product while gaining insight into how products and features are actually being used. Software monetization also helps software developers and hardware engineers design and build products that are adaptable to different pricing models.
Whatever licensing strategy you adopt, it should align with a pricing strategy that offers choice and flexibility as competitive differentiators and best practices, while reflecting your customer’s willingness to pay.
Simon-Kucher & Partners are a global consulting firm specializing in strategy, marketing, pricing, and sales. They have developed a set of software monetization principles based on their experience conducting more than 10, 000 projects on behalf of companies around the world.
Join us on Wednesday January 18th at 1PM EST to hear Madhavan Ramanujam, a renowned monetization and pricing expert, from Simon Kutcher & Partners, present a model for successful monetization, involving an unexpected set of rules for companies to design their products around price:
DATE: Wednesday, January 18, 2017
TIME: 1:00pm EST/ 10:00am PT