The Pathway to Profitability
Monetization innovations don’t happen overnight. For us, the first inroads to more effective pricing strategies were made decades ago, when our leadership invented the monetization scheme that we called the “floating license” (a.k.a. concurrent user model) that was widely adopted by CAD and engineering software firms (and is still in use today).
History lesson aside, Software Pricing Partners has taken the insights and innovations we began some 30 years ago and built upon them to create our powerful, unique approach to pricing. Leveraging a proven three-step approach, our disciplined methodology provides our clients with the edge they need in today’s highly competitive software markets.
Discover – Stage 1
Deep-dive into your technology and business
Successful software monetization strategies don’t happen in a vacuum. They start with a thorough understanding of your organization that is attained through real conversations with real people—not getting lost in tabulating reports, surveys and other nonsense.
In this stage, we conduct qualitative research to include employee interviews, customer interviews and competitor’s customer interviews. These allow us to truly immerse ourselves in your business and your world. At the end of this phase we produce an assessment to identify where problems lie and provide initial licensing and metric recommendations.
Define – Stage 2
Analysis & development of proposed strategy
In this development stage, we work to select a unified licensing approach for all software products and structure the payment stream. We analyze critical capabilities, conducting working sessions to look at the possibility of tiering products and we analyze historical transactions to identify other bundling and packaging opportunities.
We customize our proven discounting approach to enable deals to scale appropriately with value delivered. We then perform an impact analysis to identify potential ramifications and scenarios of pricing changes. We identify thorny customer transition challenges and help craft upgrade paths from old world pricing to new world monetization. Finally, we build a monetization model and an example deal estimator to be operationalized by our clients in their sales/quoting system of choice.
Deploy – Stage 3
Rollout and revision
In this stage, we help companies strategize in getting ready for rollout of their new revenue model. Here, we assist in sales transformation and sales compensation challenges via our partners. Ongoing tweaks and adjustments are made throughout the rollout as the cloud offering evolves and more transaction data is generated. We also help our clients with critical deal negotiation using their new model until they can demonstrate that they are comfortable on the new approach.
INSIGHTS FROM OUR SOFTWARE PRICING EXPERTS
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