06 Jul The Innovation Game: Retaining Customers and Attracting New Ones in the World of Ever-Shifting Tech
Experts predict that by 2027, there will be 1 million software companies worldwide. For a little perspective, there are currently around 100,000. Customers want hyperspecialized solutions to meet their niche business needs, and they have more options than ever before. Retaining customers and attracting new ones is more important than ever, so your software company needs to stand out and avoid commoditization.
What is commoditization?
Investopedia defines commoditization as follows: “Commoditization removes the individual, unique characteristics and brand identity so that the product becomes interchangeable with other products of the same type. Making commodities interchangeable allows competition with a basis of price only and not on different characteristics.”
In short, commoditization happens when there’s a lack of diversity in the market and leads to customers perceiving little to no difference between solutions. As a result, decisions are based on price, not features. With that said, it’s time for an important question. Does your software want to be the cheapest or the best? If it’s the latter, read on.
Differentiating your solution
Commoditization weakens the value of your solutions and your ability to command price premiums, so it’s vital that you take steps to differentiate your company and add value to your product offerings. Here are 5 ways to get started:
1. Improve adoption rates among existing customers
If you want current customers to see value in your software solution, you need to make sure they’re using it. And not only that, you need to help them unlock the full potential of your product. First, find the “innovator” at each of your customer’s businesses. This person is an enthusiast, and excited about what your software can do for them. They’ll help you lead the charge.
Next, ensure that you offer extensive training opportunities and resources. Consider that different user may have different needs (for example, HR will undoubtedly have different uses for your software than customer service) and demonstrate use cases for a variety of roles. Collaboration software HighFive reported increased adoption rates when they incorporated the following into their software implementations:
- In-person training sessions
- Online training videos
- Monthly emails sharing best practices and use cases
High adoption rates mean higher retention, higher marketing ROI, and higher customer lifetime value, so these practices should be a priority for your company!
2. Educate prospects
Customers are tired of solutions that overpromise and underdeliver. Now, successful companies take a consultative approach to sales and focus on education and value. Don’t lead with what you sell, but with information on what prospect can do with what you sell! Are you using content marketing to educate prospects about your software solution and influence them to act? Think case studies, testimonials, blog posts, product demo videos, and more!
HubSpot’s content marketing strategy brought them to the forefront of their industry and helped them build a veritable empire of business solutions. They credit their content marketing with increased trust, traffic, lead quality, and customer satisfaction.
3. Price appropriately
The key word here is “appropriately,” which doesn’t necessarily mean low. Aim to compete on value, not pricing, or you might find yourself in a race to the bottom. There are a variety of methods to price your solutions appropriately — read the Entrepreneur’s guide to pricing your digital product for more information or look at the graphic below for a synopsis.
Once you’ve decided on the right pricing for your software solution, don’t just set it and forget it. Conduct audits at least annually. As the value of your product increases, adjust your pricing accordingly.
4. Improve your customer service
According to a recent report compiled by Enterprise Strategy Group, most software users are satisfied with the product they’re using, but not the level of customer service they receive. This is an opportunity for your company to excel! Even if all other variables are constant, enhancing your customer service experience differentiates your product.
Customer retention costs less than customer acquisition and happy clients are more likely to give you referrals. That means product innovation and fantastic customer service are both integral to your success. Make it easy for customers to reach you, respond to reviews (both positive and negative!), and work with your customer service team to ensure the best experience possible.
5. Enlist a partner
Adding new features to your software increases value, but it can also eat up a significant amount of your team’s budget and bandwidth. But there is another way—joining forces with a strategic partner.
One such strategic partnership is a payment integration. A payment integration adds payment processing functionality to your solution and creates a new revenue stream for your company. The right strategic partnership can open new markets for your solution, expand marketing reach, and enhance your customer service! Click here to learn more about the benefits a payment integration has for your company.
Keeping your customers happy requires constant innovation across many different facets of your product and overall company. This takes work, but you don’t have to go it alone! BASYS partners with software companies like yours to provide innovative payment processing solutions supported by world-class customer service. Let’s grow together! Click here to learn more about the benefits of our partnership program or contact us to get started.
BASYS Processing as a business partner
If your processor doesn’t offer seamless integration and an industry-leading revenue share, please call BASYS Processing at (800) 386-0711. Let’s talk about creating a true business partnership that will help you exceed your goals.
BASYS Processing features:
– User-friendly API allowing for seamless integration into your software
– Competitive revenue share with easy-to-read revenue share reports tracking partnership growth
– Personalized customer solutions, including automated recurring billing, secure customer vaults, and more!
– A simple application process with the full support of our in-house Boarding team
– 90% + Customer Retention Rate
– Live operator when your merchant customers need support – no automated voice systems
– Dedicated Relationship Manager for questions and concerns
– Proactive contact with every merchant to walk through the annual PCI process
– Track record of successful software partnerships
– Thorough market analysis followed by mutual plans and goals to grow your portfolio
– High-quality service mentality, similar to your own
– Vested interest in protecting your software’s hard-earned reputation
– Open line of communication between BASYS, you, and your customers
– Quick response time for your questions and concerns; you are a priority
About BASYS Processing
BASYS Processing provides credit card and debit card processing services, and solutions that include terminals, virtual terminals, e-commerce, mobile, and point-of-sale, customized to fit any need. Banks, associations, and software partners depend on us to strengthen their reputations and relationships with their customers by providing remarkable service paired with ultimate flexibility and pricing. Merchants depend on us to make accepting credit cards and debit cards convenient, safe & affordable. BASYS was founded in 2002 on one philosophy: to take care of our merchants, partners, and employees so they never want to leave. We are dedicated to working one-on-one with our customers to design the perfect solution. BASYS is Personalized Payment Processing.
Learn more at basyspro.com, and connect with us online at: