Competing with the free providers
Aug 19 2010 Richard Lane is managing director of regional sales improvement company Engleby Associates, The Journal
WHEN competing with free software it is as important as ever to focus on value and business fit.
There is a growing trend of free software entering the market. No longer inferior bug-infested products, but rather sophisticated applications designed to introduce the user to the supplier’s brand and create future leads where revenues can be captured. The increase of free software (known as ‘freeware’ in the industry) has been possible through the rise of open-source software, rapid growth in the developer market and by tapping into the altruistic side of the technology world.
Often freeware licences are made available to very small groups of users. This serves the micro-business community well. For example, customer relationship management (CRM) software products such as ZohoCRM and High-Rise are free to use for a small number of licensed users and deliver a high spec that even includes customisation. If there was a buck involved they would deliver a pretty big bang.
You may wonder whether it is possible to compete in a marketplace where freeware products exist. My advice would be that you absolutely can.
Low cost or no cost (free) does tend to have a price – a lack of pre-sales advice and on-going support. However, it is important not to fool yourself that just because you have sales staff you have differentiation. As with all things it is what you do with your resources that matters most. How they work with their prospects and customers will make the difference and allow your company to differentiate itself.
When competing with free software it is more important than ever to re-think how you sell.
You need to find a way of becoming a trusted resource to your customers. Work intelligently and demonstrate a deep understanding of the business problems they are facing.
Armed with this knowledge and understanding you can help build a vision of how working with your company will help to not only solve their problems but increase their success. You must quickly understand the main value points – where do you need to provide most support to deliver the highest return?
Be a solution provider, not a software company.
When you are seen to be part of the success it is harder to be removed, therefore making you less susceptible to being ousted by competition – whether it is free or not.
Richard Lane is managing director of regional sales improvement company Engleby Associates
