Software Companies – Produce New Income Sources and Reduce Expenses with Customized e-Learning Content
It’s no secret that application organizations operate in a very aggressive space where the rivalry is increasingly fierce and where income can be razor thin. New, smaller sized application organizations are sprouting up each month and the leading application organizations constantly create powerful improvements ahead utilizing massive income reserves. This pattern makes it hard the mid-sized application company to compete because (a) they don’t typically have the income necessary to take giant leaps ahead in the industry and (b) because they need to repeatedly progress to stand above small sized application organizations that are vying for their slot in the marketplace. Consequently, making the jump from an unknown to a mainstream brand can prove to be very hard the mid-sized application company.
Finding strategies for making new income sources and to reduce present costs is imperative to the success of organizations caught in this pattern. They need to be considering about on their feet, considering ahead and considering creatively, at the same time. This can be a daunting task, as any application executive will tell you.
Despite all of the challenges that face the mid-sized application industry, there are several strategies to making these much-needed income sources and to reduce present costs. New improvements in technological innovation and its use in coaching and growth create generating these income sources possible.
Setting the Stage
It is almost taken for granted that when a company purchases software from a reputable source, a certain amount of end-user, customer coaching will be either bundled into the amount or made available to them for an extra price. If coaching isn’t available to the end-user customer, the training curve on the new system is going to be fairly steep, depending on the complexity of the application.
Typical coaching expense groups associated with most mid-sized application organizations include:
1. The salaries of off-line trainers
2. The journey costs of off-line trainers
3. The costs of producing hard-copy coaching manuals
4. Plenty of your time involved in off-line, on-site customer training
These costs should be under a watchful eye and should be consistently viewed as costs that could be alleviated to some degree to not only improve their attraction in aggressive bid situations but to increase the income of the supplemental coaching services provided by the company.
At one time, in the background, mid-sized application organizations should be searching for strategies to making new income sources that they aren’t currently capitalizing on to work in cooperation with their cost-reduction initiative.
Step 1: Decreasing Training Costs Using Customized e-Learning Content
The first key to any well laid-out cost-reduction plan is to reduce the costs the company currently incurs in order to get a better handle on potential benefit from sheer price benefits. Previously we outlined what our focus on price groups are…now we’re going to lower the costs related to those groups by utilizing custom e-Learning material.
Take this scenario: A mid-sized application company that develops intranet website systems currently utilizes 3 instructors that are on-site with clients for end-user coaching 3 times per involvement and they each average approximately 50 events per season for a grand total of 150 times on the road per instructor or 450 times on the road jointly.
For these instructors, the on-site system for the end-user customer may look something like the following:
Day 1: Software Release and Main Functions
Day 2: Functional Use and Administrative Actions
Day 3: Real-World Features and Labs
Lowering the costs: By utilizing custom e-Learning material, the company used in the above situation can successfully reduce the on-site time required for each instructor, thereby decreasing every price associated with the system across the board.
By using a professionally designed, self-paced, custom e-Learning component to focus on the Software Release and Main Features coaching that normally happens on Day 1 and then providing that studying component on the internet to their end-user clients during buy through an e-Learning Management System (LMS), this company could reduce journey here we are at all 3 instructors by 1 day per involvement. This would reduce journey here we are at each instructor by 50 times per season, or 150 times jointly in the past season. In addition, the end-user clients will already be familiar with the system before the instructors ever set foot in the front door.
This would successfully:
Decrease the costs related to those 150 times of journey that are now being saved.
Enable their instructors to perform more coaching events OR allow the company to reduce the number of in-house instructors it utilizes.
Decrease the costs related to making and publishing the sections of the hard-copy coaching guides that deal with the Software Release and Main Features workout that normally happens in-person on Day 1 of its involvement.
Taking it a stride further: Reducing each instructors journey schedule by 1 day is good, but it isn’t good enough. Software organizations employing this cost-reduction method should take it a stride further to boost their end-user customer’s experience. They must ensure that their end-user people are studying what they need to know to ensure time isn’t being wasted covering the same topics when the instructor visits the consumer site in-person.
To do this, the application company needs to look at how they plan to deliver internet coaching to their end-user clients. They will desire to ensure that that the end-user clients can track and manage the internet coaching portion of their sessions, whether it is self-paced custom e-Learning material or real-time on the internet trainer/student cooperation. Choosing this distribution system can be challenging but it should include the following primary functions:
1. Scholar Knowledge Assessments
2. Scholar Success and Progress Tracking
3. Real-Time Interactivity
4. Self-Paced Learning Delivery
By choosing a distribution system that addresses all four of these facets of end-user customer coaching, the mid-sized application company can not only reduce their own costs but improve their client/vendor relationship by providing more than what is normally expected or experienced in today’s application industry. What’s the bottom line? The customer is pleased with their customer’s performance and the value they received from the application company.
Step 2: Developing Revenue Using Customized e-Learning Content
Now that we have lowered our costs, the company needs to look at how they can use their new studying technological innovation to produce new income sources for their company.
Take this scenario: The mid-sized intranet website application company used in the situation above now has its own proprietary primary end-user e-Learning component to cover 1 day’s worth of what was previously on-site coaching. The company has successfully reduced its overall, off-line coaching costs. Now it is searching for methods to produce new income sources using Fraxel treatments too (a) create back their initial buy costs and to (b) create more potential benefit for the entire company.
Creating the revenue: One way for a mid-sized application company, such as the one we’re using in our example, to turn this into a much-needed income stream is for making subsequent, more complex, self-paced, custom e-Learning coaching segments. Attractively priced, these studying segments could be made available to their end-user clients on the internet without running into any extra off-line coaching costs.
In order to do this efficiently and without running into extra off-line coaching costs, the company needs to allow the end-user customer to buy the more complex coaching material and allow the end-user customer to track their own learners as they attend it programs so they can easily see its effectiveness. By investing the money today to build the more complex, custom e-Learning material, this mid-sized application company could realize earnings from it segments within 12 to 24 months once they begin marketing and selling it to their existing customer base. Such earnings would be dependent on growth timeframes, how they industry their new coaching service and their chosen modes of distribution.
Taking it a stride further: Making the more complex e-Learning material convincing and attractive to buy from the consumer standpoint takes some ingenuity. People are very susceptible to purchasing something that is located right next to the check out road at Target. Similarly, it seems sensible that the customer of this mid-sized application company will be more apt to buy extra e-Learning material if it is easily available to them and if they can buy it without any hassle.
One way to accomplish this is to publish the new, more complex, self-paced e-Learning segments to their LMS website create the segments available for buy via credit card using e-Commerce or via standard invoice with a single phone call. This essentially acts as the product appears we all see at Target next to the check out road. Since everyone needs to pass through check out road, it seems sensible to put extra products available to buy there. In other words, if the mid-sized application company is providing portions of their beginner system on the internet to their end-user clients, this more complex e-Learning material should be available for a buy right next to those primary coaching segments, thus, increasing its visibility and increasing the attraction to buy from the consumer perspective.
The Completed Solution
Because of the tight application industry and the strain put on mid-sized application organizations to perform, if these organizations can reduce the costs related to their present coaching programs and build new income sources at some point, it becomes a win/win situation both for the owner and for the consumer. The application company benefits an edge against its competitors and continues to progress while the consumer benefits an easy-to-engage system and added value from their application source.