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volume 3
Locating the sourcesof value behind truly exceptional customer
experience
April 2013
Experience Radar 2013
Lessons from the U.S. EnterpriseSoftware industry
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The business-to-business software industry is not only highly dynamic but also one of the most relationship dependent anywheretoday. Gone are the days of large-scale salesand implementations. Cloud, mobile, newsales models and quick service/support are just a few of its emergent dynamics. This isalso a business that has traditionally depend-ed on relationships, although these wereabout sales and not end user needs.
In todays empowered customer world,Enterprise Software vendors must rethink their value propositions and the experiencethey deliver. Juggling transformation andsatisfying diverse groups of stakeholdersthrough tailored experiences are key. In
many ways, Enterprise Software is leadingthe way for other industries to follow.
During the period of Y2K, technology vendors were able to dictate terms in a demand-drivenenvironment. As a result, the bulk of these vendors revenue owed from maintenancecontracts and license renewals. They were inthe business of selling their software features,not delivering on real customer needs.
The culture of old-school relationship-basedselling no longer appeals to customersandnor do simple transactional sales. Customers want someone who understands their busi-ness challenges, a partner to help them solveproblems. That shift points to a more consul-tative sales approach. At the same time, theconverging forces of cloud, social media,
2Experience Radar 2013 | U.S. Enterprise So tware industry
mobile and big data are reshaping how work is done. Creating experiences to help custom-ers navigate this changing landscape is acritical part of the partnership that they seek.
Vendors must remain relevant to stay in thegame. And to do that, they need to employ theattributes of experience (e.g., convenience,quality, support) to deepen relationships withcustomers and offer exactly what they value.Its never been about the bits and bytes.
Experience Radar helps you locate two ele-ments critical to pleasing your customers andgrowing your business: experience seg-ments and experience enhancers .
Experience segments are those naturalgroupings of consumers that appear oncesurvey respondents are categorized by thefeatures they value, their demographicsand behavioral pro les. Theyre who youcan build a business around.
Experience enhancers are those mar-ket insights thatwhen translated intopractical actionscan create value forB2B customer s. Theyre what you mightdo to grow your revenue.
Experience Radar points the way to valueand pro tsby identifying ways to serve all your customers, but particu larly those seek-ing an experience thats second to none.
Best,
Paul DAlessandro
PwC U.S. Customer Impact Leader
Experience matters.Its never been about the
bits and bytes.
Patrick Pugh
PwC U.S. Software and Interne t Leader
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04 Industry challenges and opportunities
05 Measuring the core attributes of customer experience
07 Understanding the Enterprise Software customertheexperience segments
12 Building experiences that customers valuetheexperience enhancers
42 About moments of truth
43 More about our methodology
44 AppendixSegment descriptions and comparisons
3Experience Radar 2013 | U.S. Enterprise So tware industry
Table of contentsConsumer insights for the U.S. Enterprise
Software industry
volume 3 PwCs Experience Radar helps businesses f ind the often-hidden sources of value that drive exceptional, differentiatedcustomer experience.
By helping Enterprise Software vendors rank their product and service features, Experience Radar locates opportunitiesto create value and thereby bolster top-line growth andbottom-line results.
This years series of studies measures the experiences of about 6,000 U.S. consumers across multiple industries. 1 The Experience Radar assign s value to a broad set of customerexperience attributes broken down into industry-specificelements and then ranked by what target segments value most.
Our methodology employs a conjoint survey technique toreveal insights that can be honed to improve precision. Other,more traditional customer experience studies typically do not tie to hard economics like value measures, price elasticity and churn metrics. Experience Radar does.
While the results outlined in this report are at the industry level, PwC can use this same methodology to develop an Experience Radar that is customized to your business.
1 Retail Banking, Enterprise Software, Media & Communications, Grocery, Airlines, Pharma ceuticals and Home Ser vices.
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4Experience Radar 2013 | U.S. Enterprise So tware industry
Enterprise Softwarechallenges andopportunities
The digital revolution has transformed theEnterprise Software sales process. Todaysconsumers (including decision makers and endusers) are better informed than ever before. As
a result, they expect the next-generation salesexperience to be uniquely tailoredboth totheir requirements and to the pace at whichthey do business.
Enterprise Software providers who are unableto meet these higher consumer expectationsare at a marked disadvantage. After all,
customer-oriented industries have raised thebar for everyone.
Enterprise and small-and-medium-sized (SMB) businesses face the same threats and havethe same rich opportunities for growth. Customization, adaptability and multichannelaccess are critical. The advent of new user interfaces (e.g., tablets, more advanced smart-phones) is driving the focus toward interaction with the end user. Gone are the days of green-screen terminals and form-based applications.
The momentum behind big data will drive Enterprise Software providers to change theirunderlying data models. Social, collaborative and multiple-device applications used to befar out on the horizon. Now customers view them as table stakes. And they expect to be
able to con gure their software on their own rather than relying on IT staff.
Threats
Nontraditional players (e.g., Amazonscloud and supply offerings) enteringthe space
Online business models reshaping theEnterprise Software sales process
Demand for free trials and usability studies (look/touch/feel experience) priorto purchase
Lower margins due to vertical integrationof the stack (e.g., companies playing in theback-end and front-end software space)
Delivery of the lowest TCO (total cost of ownership) in the cloud
Opportunities
Engage customers as social mediapromoters
Design software to function any time,anywhere, and on any device or interface
Tap into the increasing volume of unstructured data to meet ever-changingconsumer demands
Build R&D capabilities to shorten time tomarket
Rely on partners (e.g., system integrators,consultants) to provide a more holisticsolution
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5Experience Radar 2013 | U.S. Enterprise Software industry
Experience Radar measures theexperiences of thousands of consumers
We use an advanced primary research technique 1 to assign values to these attributes at
an industry level.
The5
core attributes of the EnterpriseSoftware customer experience
COMMUNITY 5Customerspersonal brand andconnections withothers
Friendliness andease of obtaininghelp
Anytime, anywhereaccess
CONVENIENCE3Performance and value received
PRESENTATION 4 Aesthetics,arrangement of offer
1 Ad aptive Choice-Based Conjoint.
QUALITY1 SUPPORT 2
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6Experience Radar 2013 | U.S. Enterprise Software industry
Title of the pageSubtitle here
Putting the EnterpriseSoftware customer rst
In the past, this business has been all abouttransactions. Now, experiences based onconnection and relationship drive customerchoices.
Peel back the onion. Get to the core of what yourcustomer is and values.
Experience Radar can help you: Build experiences that matter to your customers using a variety
of levers such as presentation, community and human service
Figure out whom to target and how to market experience-basedofferings
Set yourself apart as a partner who can help companies movethroughand nd opportunities intechnological upheaval
Inspire engagement and brand ambassadorship
Offer what your customers value
While the insights in this report focus onthe Enterprise Software industry, many
of the lessons are applicable to customer
experience management across industries.
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What is it?This schema uncovers which customers
value experience and what they want.
Hows it different?Traditional market segmentation is usually based purely on demographics. In contrast, we segment Enterprise Soft ware customersby the features they value, rmographics andtheir behavioral pro les.
7Experience Radar 2013 | U.S. Enterprise So tware industry
2013 experience segmentsExperience Radars
Enterprise Software customersegmentation
What is its value?This segmentation provides direction
on whom to target and how to marketexperience-based offerings. Use it tocomplement the work you are already doing with customer segmentation and voice of the customer.
The 6 experiencesegments
Enterprise
Up & Coming
Corporations
Emerging
Empires
Big Business
Behemoths1 2 3
SMB
Mid-Sized Movers Elemental Establishments VivaciousVentures1 2 3
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8Experience Radar 2013 | U.S. Enterprise Software industry
Snapshot of Enterprise segments
Up & Coming Corporations
Emerging Empires
Big Business Behemoths
Who is this segment?Least number of employeesand smallest revenue of theEnterprise segments
Mid-sized, with >5,000employees and revenue of $1bn$10bn+
Large, w ith >10,000 employeesand revenue >$10bn
What does this segment value?Engaged and interested inexperience, companies in thissegment interact with expertsto learn what is new on thehorizon. Vendors that tailorproducts to meet speci cbusiness needs are highly valued.
Currently in a stable growthstate, companies in this seg-ment tend to make smallersoftware purchases to bridgegaps in existing systems. They are frequently in the marketfor software.
These companies havecomplex needs characteristicof large organizations. Vendorrepresentatives play animportant role throughout thecustomer journey.
How socially vocal is this segment?
Most vocal Enterprisesegment
Most likely to repurchaseand tell colleagues andpeers about a goodexperience
Most likely to share badexperiences and discouragepurchases as a result
Tend to keep to themselves Will stop spreading good
word of mouth after just amonth
Least likely to discourageothers after a badexperience
Tend to focus on positiveinteractions
Most likely to recommendafter a great experience
Will continue to recommendfor years to come
1 2 3
Up & Coming Corporations
Emerging Empires
Big Business Behemoths21 3
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9Experience Radar 2013 | U.S. Enterprise Software industry
Comparing the Enterprise segments
Which segment has thegreatest lifetime value?
How to serve them Leverage good wordof mouth to attractnew customers withsimilar pro les.
Evaluate value andfeasibility of tailoringto meet the needs of aspeci c company.
Encourageengagement andparticipation inonline communities.
Recognizeimportance of supportto this segment.
Provide an excellentinstallation experience.
Minimize downtimethroughout thebusiness relationshipissues with delivery are one reason fordissatisfaction.
Most
Least
Up & Coming Corporations
Emerging Empires
Big Business Behemoths1 2 3
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10Experience Radar 2013 | U.S. Enterprise Software industry
Mid-Sized Movers
Elemental Establishments
VivaciousVentures
Who is this segment?Largest SMB segment, withthe most employees and mostincome
Second-largest SMB segment,
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11Experience Radar 2013 | U.S. Enterprise So tware industry
Comparing theSMB segments
Which segment has thegreatest lifetime value?
How to serve them Keep abreast of theirspeci c needs in orderto provide the most valuethis segmentlooks for the best vendor t, regardlessof any existingrelationship.
Deliver best-in-classaccess across multipledevices.
Reduce cost to serveby providing self-service options.
Keep lines of communication open.
Suggest tools thatincrease theiremployee mobility.
Provide excellent end-user training.
Take advantage of thesegments preferencefor self-service throughmost of the customer journey.
Ensure onlinecustomer service iseasy and reliable.
Most
Least
Mid-Sized Movers
Elemental Establishments
VivaciousVentures1 2 3
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12Experience Radar 2013 | U.S. Enterprise So tware industry
5
Turn advocacy into action
2
Infuse
the human touch
1
Deliver what matters most Promote
agility
4
Own the issues
2013 experienceenhancers
Building (and growing) your business by designingand delivering exceptionalcustomer experience
3
The ve behaviors that Enterprise Software vendors can adoptto enhance customer experience and create value are:
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EXPERIENCEENHANCER 1
Stable, easy to use and hassle freethese are key.
Look across the product lifecycle, and ensure you
deliver a consistently strong experience. Drop the
extra frills that add complexity but little value.
13
Deliver what mattersmost
1 IT Adoption Insight, Rep. Neochange, 2012. Web. 11 Oct. 2012.
Delivering on the basics is easiersaid than done. An important step in c reating greatexperiences is to focus on the customersgoals and usability expectations. Whencompanies look beyond their own feature
lists, theyll nd that customers yearn forsimplicityand they will open or close their wallets based on the exper ience they receive.
PAGE ONE
Only half of software featuresare widely used, which meansmost enterprise software is much
more complex than the t ypicaluser needs. 1 Extra featurescan negatively affect a usersexperience.
Who wants to waste time ipping throughuser manuals? Along with cost andscalability, ease of use is a top purchasedriver.
Usability isnt only about the software.Customers want a straightforward experi-
ence from purchase to service.
intuitive ...Im looking for something
that is more plug-and-play.
It should be
Ease of use drives purchase
2.5x more than customization.
Vendor produced anddelivered an exceptional product ahead of timethat optimized company ef ciency.
50 %
SalesService
ImplementationUsage
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EXPERIENCEENHANCER 1
14
The purchase is just the beginning.Stable, easy to use and hassle freethese are key.
Look across the product lifecycle, and ensure you
deliver a consistently strong experience. Drop the
extra frills that add complexity but little value.
Deliver what mattersmost
1 Harris, Chandl er. IT Downtime Costs $26.5 Billion in Lost Revenue, InformationWeek, May 24, 2011.
Companies pour time and resources intochoosing systems, but implementation is whatcustomers remember the most. Receiving the
Downtime costs customers big money. Smaller rms lose around $70,000 annually, andlarge rms lose more than $1 million. 1 Keeping systems stable is top of mind for both SMBsand Enterprises.
PAGE TWO
2x Enterprises, with their larger ITbudgets, are willing to pay twiceas much for best-in-class stability.
crashed...on my busiest day!
Both servers
value expected from a software investmentcreates a deep sense of satisfaction.
Implementationcreates many morememories thanadditional features.
Greatexperiences
Badexperiences
4x3x
Feature enhancement
C u s
t o m e r v a
l u e
Basic
Standard Best-in-class
Enterprise
SMB
So tware stability
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EXPERIENCEENHANCER 1
15Experience Radar 2013 | U.S. Enterprise Software industry
Stable, easy to use and hassle freethese are key.
Look across the product lifecycle, and ensure you
deliver a consistently strong experience. Drop the
extra frills that add complexity but little value.
Deliver what mattersmost
#1Frequent, unplanned
outages and technicaldif culties are the topdriver of churn.
Yet 7 out of 10 customer interactions are due to technical issues or dif culties withsystem access.
PAGE THREE
Building sustainable relationships requires regular, positiveinteractions.
7 out of 10 cite technical issues and dif culties with access as the top reason for vendor interaction.
Unwavering attention to the basics across the customer journey is a cornerstone of experience. Delivering consistent performance fends off attrition.
Customers want a software partnerand they want to interact with that partner in other ways besides complaining about performance. Ensuring that products work properly makes
room for these kinds of relationship-building interactions.
Having a rep in the area who visits to see how things are ishelpful, especially somebody whom we know personally andcan reach out to.
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EXPERIENCEENHANCER 1
16Experience Radar 2013 | U.S. Enterprise Software industry
Stable, easy to use and hassle freethese are key.
Look across the product lifecycle, and ensure you
deliver a consistently strong experience. Drop the
extra frills that add complexity but little value.
Deliver what mattersmost PAGE FOUR
Highlight on segments 1
Ease of use Software stability Implementationperformance
Up & Coming Corporations
Big Business Behemoths
Mid-Sized Movers
VivaciousVentures
Most likely of allsegments to basepurchase decision onease of use
Most valued feature,ranked #1 more oftenthan by other SMBsegments
Most valued feature,ranked #1 more oftenthan by other Enterprise
segments
Cause of more good andbad experiences for thissegment than for any other
1 Links to 2013 Enterprise Software Experience Radar SMB segments of Mid-Sized Movers (highest revenue and size), Elemental Establishments (neighborhood
stores with low revenue), Vivacious Ventures (vocal a nd mid- revenue earners) and Enterprise segments Up & Coming Cor porations (most vocal exper ience seekers), Emerg ing Empires (mid-sized and l east price sensitive) and Big Business
Behemoths (largest employee base with highest software spend).
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EXPERIENCEENHANCER 1
17Experience Radar 2013 | U.S. Enterprise Software industry
Stable, easy to use and hassle freethese are key.
Look across the product lifecycle, and ensure you
deliver a consistently strong experience. Drop the
extra frills that add complexity but little value.
Deliver what mattersmost PAGE FIVE
Recommendations
You need to:
Focus on dependable performancePrioritize performance over bells and whistlesto deliver the most value to your customer.Make sure key functions work smoothly
before focusing on the latest trends. Level set with customers early on so they do not haveunrealistic expectations.
Discuss customer-speci c needs and yourproducts functionality. Work with thecustomer to separate the key functions fromthe add-ons. Customers may not realize they
are putting too much emphasis on a frill.Educate them, and focus your resourceson improving the main functions of yourproduct.
Help your customers that prioritizeeasy-to-use, hassle-free products andimplementation. Partner with systemintegrators to achieve a smooth installation.That way, you gain immediate access to
capacity while minimizing the nancial risksto the company. Ramp system integratorresources up or down as the projectdemands.
Keep the end goal in mind
Partner with system integrators
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18Experience Radar 2013 | U.S. Enterprise So tware industry
Some hidden truths surfaced in this years Experience Radar
The big question:What might this meanfor the future of yourbusiness?
Access via multiple devices is vital.Businesses will pay almost 2x more formultidevice access.
Social is the vehicle for customerreferences. 80% of customers are likely to recommendtheir vendor through social media.
Reliability seems basic, but is toooften missing.Over 1 in 3 bad experiences are due tounreliable vendors.
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20Experience Radar 2013 | U.S. Enterprise Software industry
Understanding how customers want to interact is key to deliveringexperiences that will keep them coming back.
EXPERIENCEENHANCER 2
The channel landscape is changing fastwhich
is one reason to ensure human interactions are a
consistently large part of the customer experience.
Substantial returns can be gained by listening and
responding to customer needs every step of the way.
Infuse the human touch
upfront instead of just verbalassurances, the vendor actually created examples.
The vendor answered our questions
PAGE TWO
Most SMBs are comfortable with self-service. However, as the business relationshipdevelops, they become more reliant on human support. Post-purchase, for example, thetendency to self-service declines.
Mid-Sized Movers 1 do not t this SMB pat -tern. Even early in the customer journey,they value interactions with vendor repre-
Reliance onvendor rep
Implementpurchased software
Researchsoftware
Preparebusiness case
Importance o vendor representative
1 Links to 2013 Enterprise Software Experience Radar SMB segments of Mid-Sized Movers (highest revenue and size),Elemental Establishments (neighborhood stores with low revenue), Vivacious Ventures (vocal and mid- revenue earners) and Enterprise segments Up & Coming Corporations (most vocal experience seekers), Emerging Empires (mid-sized and least
price sensitive) and Big Business Behemoths (larg est employee base with highest softwa re spend).
sentatives. This is in line with Enterprises, which also rely on such access f rom the very beginning.
47 % 42 % 55 %
Nearly 3 out of 5 pre-purchase interactions with Enterprises involve vendor representatives
S a le s
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21Experience Radar 2013 | U.S. Enterprise Software industry
EXPERIENCEENHANCER
The channel landscape is changing fastwhich
is one reason to ensure human interactions are a
consistently large part of the customer experience.
Substantial returns can be gained by listening and
responding to customer needs every step of the way.
Infuse the human touch 2
Its the classroom setting, not in-depthcontent, that customers want. They can learnfrom each other as well as from the instructor.
Hands-on help is often the choice after purchase.
Customers are demanding instruction,not online assistance. Investing in robusttraining creates positive experiences. Itcan also improve operational ef ciency by reducing call volume.
PAGE THREE
hands on,
one-on-one.
I enjoyed the training we were given
65% want both classroom and online options when learning how to use the software
The vast majority 88% of SMBs and83% of Enterprises say a generalistis adequate as a trainer. The added cost of bringing in a specialist is not highly valued.
50%cite calling vendors for simplehow to information as a topreason for interaction.
Vendor representatives play an important role throughout thecustomer lifecycle.
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22Experience Radar 2013 | U.S. Enterprise Software industry
EXPERIENCEENHANCER
The channel landscape is changing fastwhich
is one reason to ensure human interactions are a
consistently large part of the customer experience.
Substantial returns can be gained by listening and
responding to customer needs every step of the way.
Infuse the human touch 2PAGE FOUR
everything I asked for
quickly and easily, along withanswering my long list of questions.
The rep provided
At critical moments, customers prefer vendor assistance to self-service.
Top expectations o live support
Likelihood o customers selecting vendorsover sel -service or issue resolution
SMB
In-depth productknowledge
First callresolution
Live person Knowsbusiness
Avaliable24/7
Knowsconfguration
Others
Enterprise
2.7x
6.8x
Focus on the types of customer experience that really matter. A straightforward frontline response can go a long way.
Enterprises often have single pointsof contact, which makes this easy-to-use channel a clear preference.
Enterprises engage vendors 2.5x more than SMBs for issue resolution.
3 out of 5 customers are satis ed by knowledgeablerepresentatives who quickly resolve issues
24 % 21 % 17 % 9 % 8 % 8 %11 %
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23Experience Radar 2013 | U.S. Enterprise Software industry
EXPERIENCEENHANCER
The channel landscape is changing fastwhich
is one reason to ensure human interactions are a
consistently large part of the customer experience.
Substantial returns can be gained by listening and
responding to customer needs every step of the way.
Infuse the human touch 2PAGE FIVE
Highlight on customer segments 1
Interaction Good experience Sharing
Up & Coming Corporations
Big Business Behemoths
Mid-Sized Movers
Elemental Establishments
Most likely of allsegments to interact with company representatives acrosstheir customer lifecycle
Least likely SMB segmentto have had a goodexperience
Least likely Enterprisesegment to have had agood experience
Most likely to telleveryone after a goodexperience
1 Links to 2013 Enterprise Software Experience Radar SMB segments of Mid-Sized Movers (highest revenue and size), Elemental Establishments (neighborhood
stores with low revenue), Vivacious Ventures (vocal and mid - revenue earners) and Enterprise segments Up & Coming Corpo rations (most vocal experi ence seekers), Emergi ng Empires (mid-sized and lea st price sensitive) and Big Business
Behemoths (largest employee base with highest software spend).
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24Experience Radar 2013 | U.S. Enterprise Software industry
EXPERIENCEENHANCER 2
The channel landscape is changing fastwhich
is one reason to ensure human interactions are a
consistently large part of the customer experience.
Substantial returns can be gained by listening and
responding to customer needs every step of the way.
Infuse the human touchPAGE SIX
Recommendations
You need to:
Build a lasting relationshipBegin each customer relationship withthe goal of a long-term partnership. Knowhow your product is being used and whatthe customer expects. Plan on providingpersonalized support when issues arise.
Create consistently strong experiences to win over segments such as Up & ComingCorporations 1 and Mid-Sized Movers. 1 Thesesegments tend to be in uencers and can serveas brand advocates.
Training is a win-win. With a strong trainingprogram in place, customers become moreself-suf cient and better informed. Theirfrustration drops, they call customer serviceless, and their satisfaction level rises. Usetraining and live demonstrations as an
opportunity to strengthen relationships withsegments such as Elemental Establishments 1 and Vivacious Ventures 1small businessesneed to keep up on the latest features to stay ahead of the curve.
Customers depend on your employees forsupport. Give your employees the trainingand resources they need to deliver a rst-ratecustomer experience. A representative within-depth knowledge of the product and the
ability to resolve an issue on the rst call willexceed customer expectations over 60% of the time. Ensure employee incentives arealigned to deliver an experience that meetscustomer needs.
Focus on training
Invest in employees
1 Links to 2013 Enterprise Software Experience Radar SMB segments of Mid-Sized Movers (highest revenue and size),Elemental Establishments (neighborhood stores with low revenue), Vivacious Ventures (vocal and mid- revenue earners)
and Enterprise segments Up & Coming Corp orations (most vocal experi ence seekers), Emerg ing Empires (mid-sized and least price sensitive) and Big Business Behemoths (large st employee base with highest software spe nd).
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25Experience Radar 2013 | U.S. Enterprise Software industry
3EXPERIENCEENHANCER
Companies are creating agile, streamlined
environmentsand they want software to support
these new ways of working. In this bring your
own device (BYOD) world, a whole new level of
exibility is required.
Promote agility
3 out of 5 want access throughmultiple devices.
2x Enterprises and SMBs are willingto pay twice as much for access onmultiple devices.
1 CTEMS Research: 78% of Enterprises Allo w Bring Your Own Device (BYOD). Marketwire, July 24, 2012.
Today, rich experiences are exibleand multichannel.Customers are working everywhere,often outside the con nes of of ce walls.They want easy access to applications,regardless of their location. And they want software features that keep pace with their evolving business models.
PAGE ONE
Mobility is table stakes now. 78% of companies have a BYOD policy, andcustomers are holding meetings, sharingdata and collaborating using a range of devices. At 3 out of 5 companies, onedevice simply isnt enough anymore.
Feature enhancement
C u s
t o m e r v a
l u e
Computer only
Computer +1 device
Computer +2 devices
E n t e r p r i s
e
S M B
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3EXPERIENCEENHANCER
Companies are creating agile, streamlined
environmentsand they want software to support
these new ways of working. In this bring your
own device (BYOD) world, a whole new level of
exibility is required.
Promote agility
customizethe software to meet our speci cneeds!
Both SMBs and Enterprises value software that can evolve with their business.Ease of use is particularly valuable to SMBs.
Customization is also crucial to meeting new challenges. It is less important forcompanies in stable states than in growth stages.
Top purchase drivers
PAGE TWO
Besides cost, scalability is a leading purchase driver.
We were able to
#1 Scalability
EnterpriseSMB
#2 Ease o use
#3 Recommendations
21%19%
21%
10%
13%
10%
G r o w
t h m o
d e E s t a b l i
s h e d
L e a d e r
Companies in growth stages need the exibility of full customization to meet unforeseen changes to their expanding business.
Companies in stable states have a clear roadmap of theirfutures. For them, partial customization will meet thei r needs.
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3EXPERIENCEENHANCER
Companies are creating agile, streamlined
environmentsand they want software to support
these new ways of working. In this bring your
own device (BYOD) world, a whole new level of
exibility is required.
Promote agility
25%of smaller businesses seethe cloud as critical to theirstrategic vision.
The days of the traditional IT data center are numbered.
1 Cloud Drivers For Adoption. CloudTweaks.com, Web. September 13, 2012
2 Kevin Casey, SMB Cloud Computing To Double By 2015, InformationWeek, May 13, 2011.
PAGE THREE
Nearly
Companies are moving away from traditional IT infrastructures to more exiblehybrid models that support features of cloud computing.
5x SMBs envision a cloud model more than Enterprisecompanies. In the U.S., SMBs will allocate more than $49 billion tocloud in 2015 2nearly double the size of the market today.
3out of
5
support a hybrid IT model. As datademands grow and speeds increase, 1 pure cloud computing will grow inrelevance, particularly for SMBcompanies.
Cloud
Company
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28Experience Radar 2013 | U.S. Enterprise Software industry
3EXPERIENCEENHANCER
Companies are creating agile, streamlined
environmentsand they want software to support
these new ways of working. In this bring your
own device (BYOD) world, a whole new level of
exibility is required.
Promote agility PAGE FOUR
Highlight on customer segments 1
Look closer at how the demand for customization dips as companies move fromgrowth stages ( like Vivacious Ventures) to stable states. The largest companies needfull customization for a different reasonconnecting legacy systems.
Up & Coming Corporations
Emerging Empires
Big Business Behemoths
VivaciousVentures
Elemental Establishments
Mid-sized Movers
CompleteFlexibility to meetun oreseen changes toexpanding business
CompleteRequired to ensure vastlegacy systems can connect
PartialSu fcient with a clearroadmap
L e a
d e r
E s t a
b l i s h e
d
G r o w
t h m o
d e
1 Links to 2013 Enterprise Software Experience Radar SMB segments of Mid-Sized Movers (highest revenue and size), Elemental Establishments (neighborhood
stores with low revenue), Vivacious Ventures (vocal and mid - revenue earners) and Enterprise segments Up & Coming Corpo rations (most vocal experi ence seekers), Emergi ng Empires (mid-sized and le ast price sensitive) and Big Business
Behemoths (largest employee base with highest software spend).
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3EXPERIENCEENHANCER
Companies are creating agile, streamlined
environmentsand they want software to support
these new ways of working. In this bring your
own device (BYOD) world, a whole new level of
exibility is required.
Promote agility PAGE FIVE
1 Links to 2013 Enterprise Software Experience Rada r SMB segments of Mid-Sized Movers (highest revenue and size), El-emental Establishments (neighborhood stores with low revenue), Vivacious Ventures (vocal and mid- revenue earners) and Enterprise segments Up & Coming Corporations (most vocal experience seekers), Emerging Empires (mid-sized and least
price sensitive) and Big Business Behemoths (larg est employee base with highest software sp end).
Recommendations
You need to:
Selectively expand to new devices Your products probably function better oncertain platforms or devices than others.Do the research required to understand thetradeoffs across products and platforms.
Make sure you do not compromiseperformance in the name of multideviceaccess.
The most comprehensive solution is notalways the answer. Sometimes customers just want simplicity. Customization options will att ract different segments. Vivacious
Ventures 1 are experiencing rapid changeand as a result, they need a full range of options to meet uid sets of requirements.
An increasing number of customers wantaccess to all of their information anytime,anywhere. Provide access to key applicationsand data through cloud storage andSoftware-as-a-Service (SaaS) programs.With the right IT investments, customers can
get the convenience they seek while savingmoney on storage costs and IT supportstaff. The additional mobility will draw in Vivacious Ventures while the cost savings will attract Elemental Establishments. 1
Offer options
Build the right cloud capabilities
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4EXPERIENCEENHANCER
Issues will inevitably arise. How you handle
them is the difference between being a vendor
and a partner. Find ways to turn problems into
good experiences that build the relationship.
Own the issues
Lack of updatesand proper performancecaused us to part ways before
our contract was up.
Customers are asking for more digital options.
PAGE ONE
When problems occur with software, the impact can be felt across the rm. Take swiftaction to manage the resolution process and make things right.
So tware problemsa ect productivity
Its no surprise that B2B customersare vocal when problems occur.
60%Compared to B2C customers, B2Bcustomers are 60% more likely totell vendors about their problems.
3 out of 5 will switch vendors after abad experience
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4EXPERIENCEENHANCER
Issues will inevitably arise. How you handle them
is the difference between being a vendor and a
partner. Find ways to turn problems into good
experiences that build the relationship.
Own the issues
Figure out where you are failing to meet customer expectations.
PAGE TWO
part ways beforeour contract was up.
Lack of updates and not keepingthe software performing properly caused us to
That way, you can prevent similar problems in the future.
35% of bad experiences are causedby vendor unreliability relatedto products or services
2x Dissatisfaction withproduct performance or service drivescustomers to leave a vendor overtwice as often as price increases do
Bad experiences with products orservices have far-reaching impacts.Customers defect signi cantly moreoften due to these experiences than dueto price increases.
A simple x is not enough. Vendors need to remedy the source of the issue quickly and effectively to prevent the issue from occurring again.
Cause
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4EXPERIENCEENHANCER
Issues will inevitably arise. How you handle
them is the difference between being a vendor
and a partner. Find ways to turn problems into
good experiences that build the relationship.
Own the issues
24 hoursWindow in which mostcustomers want issue resolution
Time is money.
Customers want issues handled with urgency. The vast majority prefer immediateresolution in less than a day.
85%prefer to wait less than a day forissues to be solved
30%Large businesses value proactivesupport more than other segments
PAGE THREE
Indeed, nearly a quarter want thepotential causes of issues identi edand resolved even before a problemoccurs. Proactive support is particularly
important to Big Business Behemoths. 1 With their large operations, they wanta guarantee that their systems will run
awlessly around the clock.
Large business Other company segments
1 Links to 2013 Enterprise Software Experience Radar SMB segments of Mid-Sized Movers (highest revenue and size), El-emental Establishments (neighborhood stores with low revenue), Vivacious Ventures (vocal and mid- revenue earners) and Enterprise segments Up & Coming Corporations (most vocal experience seekers), Emerging Empires (mid-sized and least
price sensitive) and Big Business Behemoths (larg est employee base with highest softwa re spend).
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4EXPERIENCEENHANCER
Issues will inevitably arise. How you handle them
is the difference between being a vendor and a
partner. Find ways to turn problems into good
experiences that build the relationship.
Own the issues
2X more customers will remainloyal when vendors take actionto remedy issues.
PAGE FOUR
Fixing the problem is just the rst step.
Immediately acknowledge the issue, and take action to make customers feel whole again.
Likelihood that customers will be satisfed i a vendortakes action, versus no action
Repurchase a ter a bad experience
Compensation Re und Apologized
5.5x 5x
2x
3.8x
Satisfaction directly impacts customerretention. Tip the scales in your favor
by taking action. This is a powerfulopportunity to create value and cement your customers loyaltyand customersare 2x as likely to repurchase when youtake action than when you dont.
A c t i o n
N o A c t i o n
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EXPERIENCEENHANCER 4
Issues will inevitably arise. How you handle them
is the difference between being a vendor and a
partner. Find ways to turn problems into good
experiences that build the relationship.
Own the issuesPAGE FIVE
Highlight on customer segments 1
Sharing Bad experience Proactive support
Up & Coming Corporations
Big Business Behemoths
Mid-Sized Movers
Elemental Establishments
Most likely SMB segmentto tell their vendor abouta bad experience
Most likely SMB segmentto be burnt by a badexperience and neverrepurchase after they have had one
Value proactive supportfor issues far more thanall the other segmentsto ensure limited issuesarise
Most likely Enterprisesegment to be burnt by abad experience and neverrepurchase after they have had one
1 Links to 2013 Enterprise Software Experience Radar SMB segments of Mid-Sized Movers (highest revenue and size), Elemental Establishments (neighborhood
stores with low revenue), Vivacious Ventures (vocal and mid - revenue earners) and Enterprise segments Up & Coming Corpo rations (most vocal experi ence seekers), Emergi ng Empires (mid-sized and lea st price sensitive) and Big Business
Behemoths (largest employee base with highest software spend).
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4EXPERIENCEENHANCER
Issues will inevitably arise. How you handle them
is the difference between being a vendor and a
partner. Find ways to turn problems into good
experiences that build the relationship.
Own the issuesPAGE SIX
Recommendations
You need to:
Get the basics right to avoid mistakesFocus on the most important things rst.Conduct root-cause analysis on service issuesand invest in processes and technology to minimize errors. For segments like Big
Business Behemoths, 1 which want vendorsto identify problems proactively, leveragepredictive analytics to enhance theirexperience.
Errors are inevitable. Do not stop attroubleshooting the technical issues. Createan escalation process that ensures allcustomers are satis ed after problems occur.
Track all issues until they are resolved. Offerfrontline staff a mix of resolution methods toquickly and effectively make customers feel whole again.
Customers are looking for reliable partners whom they can trust with their business.Take ownership of problems and work with the customer to resolve issues quickly.Instead of generic resolutions, offer
personalized solutions that satisfy speci cneeds. Build credibility through reliableproducts and support to create a long-termpartnership with customers.
Develop an issue resolution procedure
Create a long-term relationship
1 Links to 2013 Enterprise Software Experience Radar SMB segments of Mid-Sized Movers (highest revenue and size),Elemental Establishments (neighborhood stores with low revenue), Vivacious Ventures (vocal and mid- revenue earners)
and Enterprise segments Up & Coming Corp orations (most vocal exper ience seekers), Emerg ing Empires (mid-sized and least price sensitive) and Big Business Behemoths (larg est employee base with highest software sp end).
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Community21
Convenience/ Accessibility
14
Presentation19
Quality13
Support9
Community18
Convenience/ Accessibility
16
Presentation19
Quality14
Support10
Community27
Convenience/ Accessibility
13
Presentation18
Quality15
Support9
Community22
Convenience/ Accessibility
13
Presentation14
Quality14
Support11
Community20
Convenience/ Accessibility
13
Presentation18
Quality14
Support10
Community11
Convenience/ Accessibility
10
Presentation9
Quality10
Support10
Mapping attributesto segments
What does this mean forhow you build customerexperiences?
Up & Coming Corporations
Mid-Sized Movers
Emerging Empires
Elemental Establishments
Big Business Behemoths
Vivacious Ventures
Community is the most important attr ibute across all Enterprise Software segments.Software stability and personal software support are vital in making sure a customers
experience is exceptional.
Community 5 Customers personal brand andconnections with others
Support 2 Friendliness and ease of obtaining help
Convenience 3 Anytime, anywhere access
Quality 1Performance and value received
Presentation 4 Aesthetics, arrangement of offer
SMB
Enterprise
1 Links to 2013 Enterprise Software Experience Radar SMB segments of Mid-Sized Movers (highest revenue and size),Elemental Establishments (neighborhood stores with low revenue), Vivacious Ventures (vocal and mid- revenue earners) and Enterprise segments Up & Coming Corporations (most vocal experience seekers), Emerging Empires (mid-sized and least
price sensitive) and Big Business Behemoths (larg est employee base with highest softwar e spend).
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EXPERIENCEENHANCER 5
Let customers do the work for you. Identify key
in uencers among them to serve as your brand
advocates. Build community among your customers
so they can help each other.
37
Turn advocacy intoaction
Blow satisfaction standards out of the water.
Encourage customers to share theirexperiences. Turn brand advocates intosales people and socially savvy self-service pros.
Strong reputations lead to bottom lineresults. With customers 3.5x morelikely to purchase from highly regardedcompanies, 1 a proven track record makesbusiness sense.
1 Reputation Institute, Navigating the Reputation Economy, September 10, 2012 (http://www.reputati oninstitute.com/ thought-leadership).
PAGE ONE
94%prefer a vendor that is well established84% will recommend a vendor aftera great experience
The vendor was prepared with a good understandingof our businessthey offeredus interesting use cases
beyond what werequested.
Proventrackrecord
Experience Radar 2013 | U.S. Enterprise So tware industry
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Accommodating uniquebusiness needs
Fast, ef cientresolution
EXPERIENCEENHANCER 5
Let customers do the work for you. Identify key
in uencers among them to serve as your brand
advocates. Build community among your customers
so they can help each other.
Turn advocacy intoaction
2 X more than other segments, BigBusiness Behomoths share goodexperiences for years to come
Long-term sharing o great so tware experiences
To leverage great experiences, you have to know who is talking.
Big companies are good long-term bets, but all segments share similarly aftera month.
PAGE TWO
Feedback loops are a powerful tool.Make it possible for customers to share
and take action through engagement at various points after experiences.
Listening to your customer will helpidentify the types of experiences that
make them want to share. Act on what you learn to build brand ambassadors.
0%
1 year 2 years 5 years 10 years+
25%
50%
75%
100%
E Up & Coming CorporationsE Emerging Empires
E Big Business BehemothsSMB Mid-Sized MoversSMB Elemental EstablishmentsSMB Vivacious Ventures
SeamlessImplementation
Working together to de nerequirements
Follow up support andtraining was excellent
Great support and servicepersonnel
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EXPERIENCEENHANCER 5
Let customers do the work for you. Identify key
in uencers among them to serve as your brand
advocates. Build community among your customers
so they can help each other.
Turn advocacy intoaction
Enabling conversations is easier with social media.
Interest in online communities pre erence
Likehood to recommend online
1 Matthew S. McKenzie, B2B Buyer Survey Reveals Impact Of Social Media On Vendor Selection Process. Demand Gen Report. 11 Sept. 2012.
Online communities are an opportunity for customer-driven self-service. Userscan learn, collaborate and share.
1 in 3 B2B rms participate in social activities every day. 1
PAGE THREE
Look at community forumsyoucan literally post your question,and people with similar things,
theyll respond
to you.
0-49 50-999 1,000+
39% 58%
73%Larger companies are
1.8x more receptive to onlinecommunities
4 out of 5 Companies are likely torecommend their vendor in anonline social community
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5
Let customers do the work for you. Identify key
in uencers among them to serve as your brand
advocates. Build community among your customers
so they can help each other.
Turn advocacy intoaction
EXPERIENCEENHANCER
PAGE FIVE
Highlight on customer segments 1
Turn customers into key in uencers. Build great experiences using the drivers they care about. Each segments de nition of great is different. You have plenty of opportunities to make a great impression.
Up & Coming Corporations
Emerging Empiress
Big Business Behemoths
Vivacious
Ventures
Mid-sized Movers
Seek personalizedattention. 20% of great experiences comefrom pairing with clearexplanations
Require smoothinstallationa good rstimpression drives 35%of memories
Value training in suchhigh regard it in uences20% of positiveinteractions
Value customization,a tailored experiencecreates 23% of memorable moments
Seek prompt support, which drives almost a quarter of greatexperiences
Form
F u n c
t i o n
Top drivers o great experience
Smoothinstallation
Feature
customization
Prompt support
User training
Personalizedattention
What de nes a great experiencedrastically varies across segments.
1 Links to 2013 Enterprise Software Experience Rada r SMB segments of Mid-Sized Movers (highest revenue and size), Elemental Establishments (neighborhood
stores with low revenue), Vivacious Ventures (vocal a nd mid- revenue earners) and Enterprise segments Up & Coming Cor porations (most vocal expe rience seekers), Emerg ing Empires (mid-sized and l east price sensitive) and Big Business
Behemoths (largest employee base with highest software spend).
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EXPERIENCEENHANCER 5
Let customers do the work for you. Identify key
in uencers among them to serve as your brand
advocates. Build community among your customers
so they can help each other.
Turn advocacy intoaction PAGE FOUR
RecommendationsYou need to:
Let the customer do the talking Find key in uencers and deliver theexperience they want to broadcast totheir networks. Give customers ampleopportunities to share and help them become
brand advocates. This is a particularly important tactic for segments that are vocal with good and bad experiences.
Do not de ne greate experience toonarrowly. Understand that segments havedifferent de nitions of great experiences. You need to tailor experiences to t each
segments unique circumstances. Apply what you learn about great experiences to meetand exceed customer expectations.
Monitor your brand online to see whatpeople are saying. Discover issues early andresolve before they escalate. Understand
customer opinions and proactively incorporate these ideas during upgrades andnew product development.
Offer an array of great experience
Take part in the conversation
1 Links to 2013 Enterprise Software Experience Radar SMB segments of Mid-Sized Movers (highest revenue and size),Elemental Establishments (neighborhood stores with low revenue), Vivacious Ventures (vocal and mid- revenue earners)
and Enterprise segments Up & Coming Corpo rations (most vocal experi ence seekers), Emerg ing Empires (mid-sized and least price sensitive) and Big Business Behemoths (larg est employee base with highest softwa re spend).
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Create a positive moment of truth and you will have loyal customers.
On the ip slide, create a negative moment of truth and you have a brand detractor.
The words used most often by thosedescribing a positive moment of truth
The words used most often by thosedescribing a negative moment of truth
Percentage of respondents whoattribute negativeMOTs to unreliability 135 %1 Word clouds derived from Enterprise Software Experience Radar survey data.
Moments of truthPowerful events in the
lives of consumers thatoften de ne their opinionof a software provider
Percentage of respondents whoattribute positiveMOTs to quality
software withseamless installation
45 %
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This years Experience Radar study measuresthe experiences of about 6,000 US consumersacross multiple industries. 1 PwC conductedon-line eld work from May through July 2012. The study was designed to uncoverexperience recipes, pricing options andlinkages to customer loyalty.
We probe into the consumer responsesthrough the lens of experience attributes.These attributes include:
QualityPerformance and valuereceived
SupportFriendliness and ease of obtaining help
ConvenienceAnytime, any where access
PresentationAesthetics, arrangementof offer
CommunityCustomers personal brandand connection with others.
By using adaptive choice-based conjointanalysis, Experience Radar revealscustomer trade-offs between different setsof experiential features and the value and
43Experience Radar 2013 | U.S. Enterprise So tware industry
More about our methodology
willingness to pay consumers place on eachfeature. It also probes into other areas suchas purchase behavior, moments of truth(MOT), and word-of-mouth marketing withineach industry. The study combines andassesses these data elements to create a set of experience-based insights and a segmentationschema for each industry.
Our methodology employs an advancedconjoint survey technique to pinpointinsights. Other, more traditional customerexperience studies typically do not tie tohard economics like value measures, priceelasticity and churn metrics. ExperienceRadar does.
While the results outlined in this report areat the industry level, PwC can use the samemethodology to develop an Experience Radarstudy that is customized to your business
and identi es business accelerators.
1 Retail Banking, Enterprise Software, Communications & Media, Groceries, Airlines, Pharmaceutical s and Home Services.
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AppendixThe different segments
More detailed comparisonsof the segments
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Characteristics 39% of SMB population
1,000 4,900 employees
Annual earnings of $100mn $10bn
Typical software purchases $500 $999k
IT decisions makers within ITdepartments
Preferences Software stability : 65% seek top tier
option (45 minutes of downtime permonth)
Feature customization : Top-tier option with open API standards
Envisions a cloud model almost 2x morethan other enterprises
How to interact with Up & Coming Corporations
Up & Coming Corporations provide a great opportunity
for software vendors, since they are engaged and value
experience. They like to interact with the experts to learn
what is new on the horizon and highly value vendors that
can tailor products to meet their business needs.
Since Up & Coming Corporations are vocal in sharing
experiences with colleagues and peers, software vendors
can leverage this good word of mouth to attract new
customers with similar businesses pro les.
45Experience Radar 2013 | U.S. Enterprise So tware industry
Up & Coming Corporations
ENTERPRISESEGMENT 1
Behaviors Most vocal enterprise segment
Most likely to repurchase and tellcolleagues and peers after a goodexperience
Most likely to discourage others andshare with peers for years to come after abad experience
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Characteristics 31% of SMB population
5,000 employees, a portion over10,000 and
Annual earnings of $1bn $10bn+
Majority of software purchases >$500k
IT decisions makers throughout theorganization
Preferences Feature customization : 90% satis ed with
partial customization
Software stability : Majority prefermiddle-tier option (3-5 hrs monthly downtime)
Multi-device availability : Split betweenmiddle and top-tier options (1 additional vs. multiple devices)
How to interact with Emerging Empires
Emerging Empires are currently in a more stable growth
state and tend to make smaller software purchases that can
help them bridge gaps in their existing systems. Although
they make less expensive purchases than other Enterprise
segments, these companies are frequently in the market for
software.
Since Emerging Empires prefer to keep their opinions
to themselves, encourage these rms to become more
engaged in other ways. Prompt support is their top driver of
experience, so help them participate in groups like online
communities. These rms will appreciate getting answers
from other users, and they will provide assistance to others
as well.
Emerging Empires ENTERPRISESEGMENT 2
Behaviors Tend to keep to themselves
Will stop spreading good word of mouthafter just a month
Least likely to discourage others after abad experience
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Characteristics 30% of SMB population
Over 10,000 employees
Annual earnings over $10bn
Majority of software purchases between$1$10mn
IT decisions makers within ITdepartments
Preferences Software stability : 88% seeking top tier
option (45 minutes of downtime permonth )
Feature customization : Top-tier option with open API standards
How to interact with Big Business Behemoths
Big Business Behemoths have complex needs characteristic
of large organizations. Vendor reps play an important role
for this segment throughout the customer journey. Help
them minimize the downtime in the business relationship
issues with delivery are the reason for dissatisfaction.
Since Big Business Behemoths are vocal when it comes togood experiences, provide them with plenty to talk about
by being on top of your game during installation. They wi ll
reward you with good word of mouth for years to come.
Big Business Behemoths ENTERPRISESEGMENT 3
Behaviors Tend to focus on positive interactions
Most likely to recommend after a greatexperience
Will continue to recommend for yearsto come
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Characteristics 36% of SMB population
50 249 employees , with a portionover 500
Annual earnings from $10mn $100mn upto $1bn for larger rms
Software purchases range from $50 $500k
IT decisions makers within ITdepartments
Preferences Software stability : Majority seeking
top-tier option (45 minutes of downtimeper month)
Multi-device availability : Best-in-classaccess across multiple devices preferred
How to interact with Mid-Sized Movers
Experience matters to Mid-Sized Movers. Because these
rms are the least price sensitive, ease of use not cost
is their leading purchase dr iver. This segment looks for best
vendor t, regardless of any existing relationship, so keep
abreast of their speci c needs in order to provide the
most value.
Offer Mid-Sized Movers products that require little to
no downtime and can be accessed by multiple devices.
Deliver great experiences, and they will thank you with
recommendations for years to come.
Mid-Sized Movers SMBSEGMENT 1
Behaviors Tend to focus on positive interactions
Most likely to recommend after a greatexperience
Will continue to share for years to come with peers at other companies
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Characteristics 33% of SMB population
Fewer than 50 employees
Annual earnings >$1mn
Average software purchases >$50k
IT decisions makers are seniormanagement
Preferences Software stability : O ver 55% satis ed
with middle-tier option (3 5 hrs monthly downtime)
Multi-device availability : Top-tier option(works across multiple devices)
Cloud usage almost 2x more than that of other SMBs
How to interact with ElementalEstablishments
Elemental Establishments have simpler needs due to their
size and budget. Keep an eye on them, however, as their
needs will evolve with growth. Theyre not the most vocal
segment, so be proactive with recommendations when the
time is right.
For now, offer products like cloud-based solutions that can
help them manage costs. Also, suggest tools that increase
their employee mobility, as exible work environments can
reduce overhead.
Reduce your cost to serve these rms with self-service
optionsthis segment is comfortable with do-it-yourself.
Elemental Establishments
SMBSEGMENT 2
Behaviors Keep to themselves and least likely
among SMBs to share experiences with peers
Least likely to recommend
Most likely to not tell their vendor aboutbad experience. This translates into lostsales as they are also the least likely torepurchase afterward
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Characteristics 31% of SMB population
Fewer than 50 employees
Annual earnings $1mn $10mn
Typical software purchases >$50k
IT decisions makers are in operations
Preferences
Multi-device available : 75% seekingtop-tier option (across multiple devices)
Feature customization : Top-tier option with open API standards
Envisions the cloud as a part of theirnear-term strategy 2x more thanother SMBs
Vivacious Ventures SMBSEGMENT 3
Behaviors A vocal segment, most likely to share
their memorable experiences, both goodand bad
Continue to share bad experiences for years to come
How to interact with Vivacious Ventures
Vivacious Ventu res are smal l and nimble companies that
want soft ware to meet their spec i ca nd ever-ch anging
needs. They see big things in their future and envision an
IT infrastructure that can g row with them.
Offer these rms products that c an enable their workforce,
front and back of ce, to ourish. Build your relationship with these companies by teaching employees how to best
use new softwareuser training is t heir top driver of
experience.
Take advantage of this segments desire to self-serve
throughout most of the customer journey. However, be sure
the online experience is designed for usage.
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Overall, what do Enterprise customers value in EnterpriseSoftware?
High-quality customer experience is a de ningfeature for Enterprise software customers.Given their size, Enterprise customers areoverwhelmingly willing to pay for customizedpackages that are tailored to their unique needs.Extremely quick issue resolution and limitedsoftware downtime are top featuresandbusinesses are willing to pay for the convenience.
Customers seek out solutions that are easy tolearn and that require only a few days of trainingin person or online. Stable software is essentialcustomers expect it and they arent willing to pay extra for it.
Customer value or top eatures 1
Lower Willingness to pay
D e m a n d
L o w e r
Higher
H i g h e r Software stability
45 min monthly downtime
Device avaliability Computer &
multiple devices
Upgrades Performance
& interface withsome downtime
User trainingGeneral online &
in-depth classroom
VendorreputationExtensiveindustry
experience
Feature customizationPartial
Integration
levelFull
Ease of use 2-3 daystraining
Issue resolutionIn 24 hrs
1 Axis Lab els Demand-Relative feature importance assigned by customers; Willingness to Pay-Incremental featurewillingness to pay Other Figure Comments : Does not display Pre-Sale Support feature due to insignificant customer value relativeto feature set
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52Experience Radar 2013 | U.S. Enterprise Software industry
Overall, what do SMBcustomers value in Enterprise Software?
High-quality customer experience is a de ningfeature for SMB software customers. Many are willing to pay for customized packages that ttheir unique needs, quick resolutions to keeptheir software up and running, and consistentupgrades. Given the number of employees on-the-go and working remotely, access from multipledevices is valued.
SMB customers seek solutions that are easy tolearn and that require only a few days of trainingin person or online. Stable software is essentialcustomers expect it and they arent willing to pay extra for it.
Customer value or top eatures 1
Lower Willingness to pay
D e m a n d
L o w e r
Higher
H i g h e r
Software stability 45 min monthly
downtime Device avaliability Computer &
multiple devices
UpgradesPerformance
& interface withsome downtime
User trainingGeneral online & depth classroom
VendorreputationExtensiveindustry
experience
Feature customizationPartial
Integration levelFull Ease of use
2-3 days training
Issue resolutionIn 24 hrs
1 Axis La bels Demand-Relative feature importance assigned by customers; Willingness to Pay-Incremental featurewillingness to pay Other Figure Comments : Does not display Pre-Sale Support feature due to insignificant customer value relativeto feature set
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53Experience Radar 2013 | U.S. Enterprise Software industry
Comparatively, how do Enterprise segments value features?
Across Enterprise segments, Up & ComingBusinesses 1 will pay the most for 24-hour issueresolution. Emerging Businesses 1 and Big BusinessBehemoths 1 value multidevice access to softwareand solutions that are easy to operate and usethey will pay almost twice more for these featuresthan Up & Coming Businesses will.
In addition, Big Business Behemoths standalone in their willingness to pay for featurecustomization as well as performance upgrades toensure their software is constantly top of the line.
Feature willingness to pay premium or top eatures
Emerging Empires
Overall populationLess willing More willing
Ease of user interface2-3 days of training
Integration levelStandalone
Vendor issue resolutionResolution within 3 days
Software stability 7 hours downtime per month
Multi-device availability Works across multiple devices
Big Business Behemoths Circle size proportionate to feature demandUp & Coming Corporations
2%
33%
67%
69%
25%14%
20%13%
34%
57%
15%
26%
This chart compares segments demand for individual features 1 as well as their will ingness to pay for the feature . The percentages indicate the size of the premiumthat the segment is willing to pay for an enhanced experience with that feature. The size of the bubble indicates the demand for the feature.
1 Links to 2013 Enterprise Software Experience Radar SMB segments of Mid-Sized Movers (highest revenue and size), Elemental Establishments (neighborhood
stores with low revenue), Vivacious Ventures (vocal and mid - revenue earners) and Enterprise segments Up & Coming Corpo rations (most vocal experi ence seekers), Emergi ng Empires (mid-sized and lea st price sensitive) and Big BusinessBehemoths (largest employee base with highest software spend).
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54Experience Radar 2013 | U.S. Enterprise Software industry
Comparatively, how doSMB segments value features?
Mid-Sized Movers 1 value certain featuresbutthey are only willing to pay slight premiumsacross the board. Elemental Establishments, 1 onthe other hand, have the budget and the desire topay higher premiums for features that increasepersonalization and convenience.
Feature willingness to pay premium or top eatures
Elemental Establishments
Overall populationLess willing More willing
UpgradesPerformance & Interface withsome downtime
Ease of use2-3 days training
Device availability Computer & one device
Issue resolutionIn 24 hours
Feature customizationPartial
Vivacious Ventures Circle size proportionate to feature demandMid-sized Movers
5%
5%
5%
12% 13%
10%
11%5%
5% 17%10%
36%6%
This chart compares segments demand for individual features 1 as well as their will ingness to pay for the feature . The percentages indicate the size of the premiumthat the segment is willing to pay for an enhanced experience with that feature. The size of the bubble indicates the demand for the feature.
1 Links to 2013 Enterprise Software Experience Radar SMB segments of Mid-Sized Movers (highest revenue and size), Elemental Establishments (neighborhood
stores with low revenue), Vivacious Ventures (vocal and mid - revenue earners) and Enterprise segments Up & Coming Corpo rations (most vocal experi ence seekers), Emergi ng Empires (mid-sized and lea st price sensitive) and Big BusinessBehemoths (largest employee base with highest software spend).
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While the results outlined in this reportare at the industry level, PwC can use thesame methodology weve used here todevelop a customized Experience Radarstudy and uncover opportunities toaccelerate your business.
If youd like to discuss these ndings orhow PwC can help you apply them to yourbusiness, contact:
Paul DAlessandro312 298 [email protected]
Patrick Pugh206 398 [email protected]
55Experience Radar 2013 | U.S. Enterprise So tware industry
We hope these insights prove useful to your business
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