6 mistakes to avoid for a software vendor
1 like672 views
The document outlines 6 mistakes for software vendors to avoid: 1) Underestimating the Technology Adoption Lifecycle and where the market currently stands. 2) Lacking focus on target customers and market segments. 3) Letting customers dictate strategy instead of controlling direction. 4) Remaining tech-focused instead of being market-centric. 5) Maintaining a consulting mindset instead of pushing standardized products. 6) Neglecting to define and communicate their unique value proposition or positioning. The author advises software vendors to focus on their market strategy from the beginning.
6 mistakes to avoid for a software vendor
- 1. 6 mistakes for a software vendor Alain Meller – NovaXone Info@novaxone.com i A. Meller
- 2. 1. To underestimate the Technology Adoption Lifecycle (TALC) Maturity Hyper Growth Assimilation Early Market What Category are you in? What is the stage of the corresponding market? Each Phase of the market requires a different market strategy If you don’t get it correctly: you will waste a lot of time and efforts! A. Meller
- 3. 2. Absence of focus If you never decide where is your Segments’ requirements sweet spot and who is your ideal target customer, you will end up with : Running after your different customer requirements and after your more Segment Segment Segment focused competitors Competitor A C B Loosing ability to compete in each segment Functions of Your Product For each segment, your product offers too much …and not enough! You will consistently loose over competition. A. Meller
- 4. 3. To let the customer drive your strategy Customers will tell you what is important to their job, but do not generalize too quickly! Customers want their particular problem to be solved. They will ask you to do custom specific development Although corresponding revenues may be vital, keep your eyes open: They may drag you to directions where you may loose your very uniqueness Too much custom development will kill you by creating liabilities that will hamper your growth You need segment discipline and focus in order to grow Control your customer, don’t do whatever they want you to do, feed others A. Meller
- 5. 4. To remain techno-centric and to refrain to be market- centric Ventures start often with a bunch of brilliant techies that eventually capture Early Adopters. When the market develops and Pragmatists are becoming interested you need to be more and more focused on their needs and not on what you think is the last cool feature. Capturing the industry knowledge of your customer is key: if you don’t have it in the beginning, get it in-house ASAP Spend time on your Marketing Strategy: the sooner the better If you don’t do it, others will do it and will outpaced you big times! A. Meller
- 6. 5.Never distance yourself from a consulting-oriented mindset If you are coming from a customer service background (consultancy, software house), you’ll need to change your culture to succeed Proposing a software product to a market with an objective of high margin and growth means: pushing a standard offer You’ll need to move from «Tell me what you want me to do Mr. Customer » to « Here’s what I am coming up with for you to solve your problem » Choose you business-model and start working on marketing A. Meller
- 7. 6. To neglect to work on « positioning » Let’s suppose you know your ideal customer who is aligned with your very unique capabilities. Great! That is not enough if nobody knows it! Positioning means making clear and communicating on your value proposition Positioning will make you the obvious choice when your ideal customer is going to make a buying decision Average products with outstanding positioning will win over you. A. Meller
- 8. Don’ts in short To underestimate the Technology Adoption Lifecycle (TALC) Absence of focus To let the customer drive your strategy To remain techno-centric and to refrain to be market-centric Never distance yourself from a consulting-oriented mindset To neglect to work on « positioning » Work on your Market Strategy from day one! info@novaxone.com A. Meller