Software Usage Analytics: Don’t Guess What Your Customers Are Doing With Your Product
Customer lifetime value has become the crux of value generation in the software industry, so understanding customer usage patterns is an imperative for traditional software and SaaS providers alike. Whether its knowing how often a new feature is used, or which “legacy” features can be removed, or defining a new pricing model, usage analysis supports resource optimization, drives better product development, and provides opportunities to improve customer satisfaction and increase customer return on investment.
Mark Thomason, Research Director, Digital Business Models & Monetization, at industry research and advisory firm, IDC, addresses key questions posed by Revulytics and their customers on this important topic.
- Why is there so much focus on usage analytics in the software industry today, and are software vendors moving quickly enough to adopt this technology?
- Are software customers interested in understanding their usage and do they have concerns about usage tracking?
- Is usage tracking as important for traditional software providers as it is for SaaS companies?
- How complex will it be for vendors to adopt consumption-based licensing? What are the drivers for vendors to adopt consumption-based licensing?
- What are some best practices for companies when implementing usage tracking?