The rise of as-a-service business models has changed the face of the tech industry at a far quicker pace than anyone would’ve anticipated – and just by looking at the development of television entertainment (Netflix), personal transport (Uber), and music (Spotify), there’s one thing we know for certain: technology customers are looking for on-demand solutions, rather than tangible items.
Due to this shift in the industry, consumers are buying less and less physical items, and opting for more subscription-built services. Think about it: when last did you see people queuing around the block to get the latest tablet or smartphone? People are just not as excited about product as they once were, but will happily pay for a digital offering which adds value and increases convenience, and this has only increased in the wake of the COVID-19 pandemic.
In much the same way as consumers use Netflix when they want to be entertained, they want easy-to-use software or services that deliver a similar on-demand function in other avenues of their lives. This innovation change sees consumers being less concerned with product specifications (often not even having interest in owning a specific device or product) and more focused on how a company can help them meet a goal or cure a pain-point (utilising a monthly subscription service, for example).
This applies to businesses too. As an example, if you’re running a small business, you are not interested in owning licences for Microsoft Teams and a bunch of PCs and tablets. What you want is to know that your employees, freelancers and contractors can collaborate easily wherever they are. Being able to achieve that goal without owning specific devices and software lowers the cost, dependency on a platform, and lessens complications for all involved.
Or if you’re in retail and your sales peak from Black Friday to Christmas, you want to be able to process transactions at the point of sale and on your website with no downtime or disruption. You don’t want to be reliant on the technical specs of your device to make it possible. You need something that’s in the cloud, reliable, and easily accessible.
The reality is that products have become commoditised and the differences in the specs and features are not going to matter much to most users. What does matter to them is the utility they get from their relationship with a company. The companies that will lead in the years to come are those that are able to listen to what customers want and rapidly respond.
So if you’re a small business, or you’re someone who sees themselves as an entrepreneur or business owner some time in the future, keeping these points for software development can help establish significant competitive advantage and give customers something intangible that they actually want. Let the team at My Online Presence guide you through the various phases – whether you need a website, custom software, or a CRM system. Whatever your digital needs, they’ll be able to move you forward!