Technology provider Codeweavers is moving to a 30 day contract model for its customers, citing the success of B2C models and recent technological innovations as spurs for the move.
Shaun Harris, Codeweavers sales director, noted: “We see the confidence of companies such as Netflix, which offers a simple monthly billing period that can be ended at any time, with charges only up to the end of the month, as a guiding pioneer. Theirs is a statement of belief in their service and one which clearly helps more customers to make an easier buying choice.
“In the Netflix model, customers know they are never ‘locked-in’; instead, they stay loyal because they have access to quality and innovative products combined with great customer service. This is the recipe for success that in the dealer technology market, we need to learn from.”
The company said apps had redefined how software was used, yet B2B software providers had often retained traditional long-term frameworks for their products. According to Harris, this risked stifling innovation and limiting the capacity of dealers and manufacturers to keep up with changing consumer expectations.
He added: “The range and scope of support technology available to dealers and manufacturers is becoming ever wider, creating exciting new possibilities. However, traditional thinking on T & C’s has not kept pace with the speed and ease which dealers want. In other markets, we see that rigid structures stuck in the past have encouraged market disrupters to make hay. Motor retailing needs every ounce of fresh thinking it can muster; we have to make it easier for dealers to access.”
Harris concluded saying the contract model needed to evolve. He added: “As a software provider, we see the speed and pace of change as an opportunity, not a threat. We want to be on our toes and innovating continuously. If a business has a long-term contract in place, this energy and creativity can all too easily be replaced by inertia and procrastination. In an ever faster operating environment, this simply is not the way ahead. After all, in a B2C market, it would no longer be considered acceptable because an alternative is just an App Store click away. We have to think the same way.”