For Consumer Product Strategy Professionals

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	October 14, 2008 Selling Packaged Software To Consumers Consumer Product Strategists Should Push Software Subscriptions More Aggressively by J.P. Gownder with Remy Fiorentino, Michelle de Lussanet, Laura Wiramihardja

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Executive Summary

Four out of five US households have a PC, but most consumers spend $50 or less each year on software. Free software bundled with new PCs, as well as free and open source software and Web-based applications, have made it much more difficult to sell consumers packaged software. Despite the plethora of free applications available, most consumers still want to purchase commercial software, but they find the prices to be prohibitive. Data analytics can help product strategists and marketers identify the segments most likely to purchase software. A consumer software subscription (CSS) sales model will help lower the barriers to entry for consumers — and will also provide vendors with a more predictable revenue stream.

TABLE OF CONTENTS

• Few Households Spend Much Money On Software
• Product Strategists Should Use Data Analytics To Identify Paying Customers

RECOMMENDATIONS

• Offer Consumer Software Subscriptions To Specific Consumer Groups
• Related Research Documents

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