Answer

There are a number of challenges to communicating the value of intangible products like software.  You must have an understanding of just what that value is.  In consumer markets, there are two types of value: economic and psychological.  Not surprisingly, each needs to be communicated in a different way.  Psychological value (often referred to as hedonic value) results from the pleasure and/or status a consumer gains from using the product. Communicating psychological value is done through imagery and creative marketing communication.  However,  our expertise suggests that spreading word-of-mouth can have a strong effect on influencing the marketplace.  Thus, it is critical to tap into key influencers and attempt to induce trial through "beta tests," promotions, and free samples to opinion leaders.

Economic value results from direct, measurable financial impact that your software has on the customer.  For example, the economic value of tax preparation software stems from several possible sources: 1) the hours saved from preparing the return yourself, 2) the financial savings from not having to pay a professional tax preparer, and 3) the savings obtained by reducing errors and missing deductions.  Note that the value will differ depending on the reference product to which you are comparing yourself (e.g., professional tax preparer vs. do-it-yourself).   When communicating economic value, we can offer a couple of suggestions.  First, quantify the dollar impact of the software.  Your message won't have nearly as much impact if you only focus on the benefits and don't take the next step of assessing the dollar value of those benefits.  Second, choose the right reference.  Instead of comparing the value you bring relative to other software products, you might compare how much value you bring relative to the hardware solution (if this is, indeed, a favorable comparison).  The marcom materials could be pretty provocative and really catch the customer's attention.  Finally, like any communication, you need to be consistent and persistent in getting it into the market.  So make sure you do a good job on the front end of assessing the value and then go for many repetitions from multiple sources to get it out.


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