I have been in so many interesting conversations in the past few weeks! Just last week I presented the need and concepts for Value Added Services to nearly 500 people either in person or on the phone. And these were not just services people but executives in sales, product strategy, corporate strategy, etc. And it is working. Pretty clear that the business case for taking control of product adoption is going to happen.
A couple companies are jumping out in front by piloting new VAS offerings to large customers. From what they have told me, customers are eating it up. I expect that these initial pilots will have crappy margins because we are all new at it. But that is to be expected in any new service type – all part of the “services laws of gravity” we talk about in the book.
Just today a major software company took a 10% stock price haircut today and one of the major reasons was around “unused licenses”. Especially in this jobless recovery, we need to have every possible user at every possible customer using the product. Otherwise we wont get any license growth. If companies aren’t hiring, they don’t need more licenses. Or worse, if they do a lay off, they have “newly unused” licenses. Now you have an inventory of unused licenses at that customer which must be used up before they buy more. Either way we need a plan in place to solve this problem if the product side is to get growing again anytime soon.
If anyone is doing interesting things around strategies to drive license utilization – either additional seats or additional capabilities, please let me know. I want to make you a star!!!
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