Tuesday, June 17, 2008

Two Weeks After the Day After

Ever driven past the house of an ex?

Yesterday, I actually drove up and talked to some of the people inside.

Yes, they tried to give me beer and break down by inhibitions and I kept bringing up what it was going to cost for what I wanted them to do and they kept bringing up quality and range of services but I kept thinking I was half-buzzed and quality of service wouldn't really matter cause I was getting sleepy anyway and they kept talking about better interoperability and I kept talking about why should I pay more than their competition was willing to charge me and how this was better for the market cause eventually they'd have to lower their price to align with their competition and this would be better for everyone and then they finally agreed to lower the cost this time but I'd have to pay full price next time but I really won't.

Overall - everyone was honestly gracious. Hunter wasn't there, which was a bit of a disappointment. Hopefully we'll catch up later in the week. But if I remember correctly, he needs to get home promptly on Monday night in order to make sure the staff have polished his Bugatti Veyron collection in the appropriate clock-wise direction (as this is the northern hemisphere) with just the right force, using the 50 year old single malt which he says makes the cars glisten and yet impervious to police radar.

On a side note - I'll be the first to admit I don't understand the science behind the radar absorbing qualities of expensive Irish beverages. But Hunter drives faster in reverse than most people drive going forward (and he never gets a ticket). How fast? Well, this one time on the way to Rhode Island, I glanced down at my watch and observed the second hand slow, stop, and then tick backwards.

As for Revit development, I get it. If a subscription renewal costs X and a brand new license costs 4X - who do you want to buy your software? It's a chapter in a marketing book entitled, "Lowering Barriers to Adoption." The challenge is that many would-be customers just don't get it. You're trying to explain the value proposition of working in a concurrent database for buildings, and they keep raising their hand and asking numbnut questions, most of which are variants of, "Can I do _ with _?"

So rather than attract new customers by creating software which appeals to the mediocre masses that don't yet understand the question (much less the answer) what then?

New customers are risk adverse. They are not motivated by hope or promise or potential: these are the early adopters. They got it. They get it. They're on board. They adopted it years ago, ran user forums on Linux boxes in their basement to support it, lurked in other forums to defend it, and a little more than panicked when, for about a year and a half worth of then net revenue someone else acquired it.

But now you've got the bulk of customers still waiting to adopt. They're still somehow unsure. They still think that software is a differentiator. And for a while it is. But then, like many things it becomes a commodity. A loss lead. My observation is that the late adopters are much the same and for the most part are most unfortunately motivated by one word:

Fear.

Want to lower a potential customer's 'barrier to adoption'? Create meaningful functionality for your existing customers: crazy-ass, tricked-out, ohmygodIknowyoudidn'tjustdothatohyesIdid, mind-blowing, absolutely insanely great kind of functionality. Then show the results of the efforts of your existing customers to your potential customers. And then go one step further: show it to your potential customer's customer. In other words, don't just show it to the architect. Show it to that architect's client and contractor. Because the architects are just the teenagers in this equation and their clients and contractors are the parents. And if you want to get the teenagers to shape up, why not appeal to the people that pay the bills, feed them, buy the iPods/tennis shoes/high-speed internet connections and basically keep a roof over their heads.

Now you're not just showing a potential customer what a bit of software can do for them. You're showing them what a bit of software is already doing for their competition. And for their competition's clients. And for their competition's contractor. And so on.

And when they realize their competition has already done it - they won't ask so many numbnut questions.

9 comments:

Hunter said...

Phil,

You're mistaken about the Bugatti collection. I traded them in once the price of gas went up. I now am running Lamborghini Reventons. At 650hp I find the gas consumption is no longer an issue.

See you this Wednesday.

Hunter

Phil Read said...

Lanborghini? Aren't they for the nouveau riche euro-trash? Ughh.

Unknown said...

Hi Phil,

Spot on!!!

However....

"And when they realize their competition has already done it - they won't ask so many numbnut questions".

Its the nature of the beast, they will continue to ask these dumb ass questions, they often can't help themselves.

BTW. you have nothing to worry about when it comes to gas prices! Here in the UK we are paying around £1.20 a litre, so that's round $2.34! :(

Hunter said...

Oh, BTW Single Malt Scotch is typically attributed to the Scots. I am racking my brains to figure out what the Irish ever brewed besides Guinness.....

Phil Read said...

Are you crazy? Polish cars with single malt scotch from Scotland? That's what the Irish scotch is for. ;)

Anonymous said...

A very confusing post.

1) Is the radar absorbing capability related to the relative cost of the beverage (vs others) or the cost of the car relative to the beverage.

I’m trying to figure out if splashing the Fiat with a bottle of cheap Rose would make it stealthy or would something better be needed, maybe Asti?

2) How do you handle someone who NEEDS, and would pay for, AutoCAD LT today but should have Revit for the question you know they’ll ask in a few months? (apart from showing/telling them that)

Anonymous said...

You don't need to worry about radar when you use 42 Below Vodka. Admittedly, because it originates from the Southern hemisphere you'll get a better result if you polish in an anti-clockwise direction .

Not sure a Veyron's up to Vodka though, after all it's just a VW...

Vodka also has the advantage of keeping the Eastern European creators of ohmygodIknowyoudidn'tjustdothatohyesIdid features happy when they have to pull the all nighters debugging said ohmygodIknowyoudidn'tjustdothatohyesIdid features.

Who would have thought one vodka could have so many multi-discipline uses, and they'll sell more because of it.

Steve said...

No "wooden tongue" for you! Cheers!

Anonymous said...

Obtaining 42 Below Vodka is no problem but will it work on a car that originally came from the Northern Hemisphere?

Are cars like CRT monitors and adjusted in the factory for their destination hemisphere?