Annual report on software usage analytics suggests that many suppliers lack important insights into the customer lifecycle
Revenera, producer of leading solutions that help technology companies build better products, accelerate time to value and monetize what matters, today released the Revenera Monetization Monitor: Software Usage Analytics 2022 report. The second part of an annual series, now in its fourth year, this report identifies trends in and best practices for collecting and analyzing software usage data.
“Software usage analytics trends are maturing. Vendors are looking to automate and optimize how they analyze usage, reducing the reliance on manual processes by nearly 10 percentage points since 2021,” said Nicole Segerer, SVP and General Manager at Revenera. “While this trend is promising, Revenera’s research still indicates that few software companies can currently gather product usage data very well and there is further potential to utilize usage data for product and strategy decisions.”
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Highlights from the Revenera Monetization Monitor: Software Usage Analytics 2022 report include:
- Software suppliers show growing interest in collecting software usage data.
- 62 percent of respondents collect software usage data today. An additional 18 percent plan to in the coming two years, for a total of 80 percent doing so by 2024.
- Only 26 percent of respondents indicate that their organization can currently gather product usage data “very well.”
- The coming 12–18 months will see significantly increased reliance on usage-based monetization models, which require accurate usage data: 41 percent of all respondents indicated that consumption-based software monetization models will grow as a percentage of overall software license revenue and 34 percent of all respondents indicated that metered software monetization models will grow as a percentage of overall software license revenue.
- Suppliers that collect usage data have greater visibility into how customers use their products.
- Nearly one-quarter (24 percent) of suppliers that do not collect usage data can’t see any common metrics of how customers use their product.
- For the essential metric of whether suppliers can see if customers are using their product at all, 52 percent of those who collect usage data have this visibility, while the number drops to 25 percent among those that don’t collect usage data.
- Capabilities to track customers and their entitlements/use rights are essential for managing the customer lifecycle but are less mature than other areas of usage analytics.
- The most commonly used measure of the customer lifecycle is the renewal date, but only 49 percent of respondents track this, indicating room for improvement across capabilities to manage the customer lifecycle.
- The number of suppliers that can track all customers and their entitlements/use rights jumps from 46 percent overall to 64 percent among respondents using a purpose-built commercial entitlement management solution.
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