Showing posts with label Customers. Show all posts
Showing posts with label Customers. Show all posts

Monday, March 10, 2008

Customer Advisory Council 2008

Last Wednesday we held Black Duck Software’s 4th annual Customer Advisory Council or “CAC” at the Network Meeting Center in Santa Clara, CA. The CAC is an opportunity for Black Duck to interact, in depth, with some of our best customers, to share our plans with them, and to take input from them about where they need us to go in the future to better fulfill their needs. Participants included architects, IT, legal counsel, and project managers representing leading software, device, embedded systems, and financial service companies.


In 2007 I wrote my first Customer Advisory Council blog post here about the benefits of CAC's.

We brought an all-star crew from headquarters including Jim Berets – Sr. Director of Product Management (who did a great job organizing the meeting), Bill McQuaide – EVP of Product Development, Andi Zink – VP of Engineering, Richard Sherrard – Black Duck Code Center Product Manager, Tim Bridge – SVP of Sales, Bob Lapides – EVP of Field Operations, and Peter Vescuso, our new SVP of Marketing.

Our major goals for the event were to preview Black Duck’s future direction, obtain customer feedback on needs & priorities, and map these to our plans. It is critically important for us to understand our customer’s internal challenges and establish open communication channels for future cooperation. We also want to start building a community where customers learn from each other by sharing their ideas, processes, and successes. The most powerful sessions, however, were three customer presentations on protexIP deployments, customizations using the SDK, and application licensing models.

After a long day we had cocktails and dinner at Parcel 104 at the Santa Clara Marriott.

I think the CAC attendees value not only our vision but the tangible progress we have made and the two-way communications channel we have established. Equally, I think the Black Duck attendees value the opportunity to get in-person feedback from our customers and learn from each other.

Tuesday, January 15, 2008

Black Duck Software's Great Customer Growth in 2007

We are already well into 2008, but I wanted to take a moment to reflect on 2007. It was a phenomenal year for Black Duck Software.

Black Duck now has more than 575 customers, including a new customer list that includes NEC, Citrix, IONA Technologies, Lehman Brothers and QNX. We saw dramatic success internationally, with 93 percent year-over-year growth. In 2007, we established our international headquarters in Amsterdam, inked a reseller agreement with NEC in Japan, and helped our customers successfully navigate the introduction of GPLv3 (it helped that our executives were active on the committees that wrote the new license).

I want to personally thank Black Duck's employees and management team, whose commitment helped to make 2007 the successful year that it was. It is clear that we are providing a set of solutions that provides significant return for our customers, and I look forward to continuing to work with them in 2008.

For more details, see our press release online.

Friday, July 6, 2007

Movie Genres and Customers


All the world's a stage, And all the men and women merely players. They have their exits and their entrances, And one man in his time plays many parts, His acts being seven ages.

--Shakespeare, As You Like It (II, vii, 139-143)

On this world's stage, life does imitate art, and often business does too. In my (ahem) several decades in business, I've noticed that any given customer is akin to a certain film genre.

Now stay with me on this. Think for a minute about your own customers, and you'll see I'm right. Want more proof? Keep reading.

Generally speaking, customers fall into one of six categories by genre:

First there are the Action & Adventure customers. These customers pose many challenges. Sometimes they're explosive; sometimes they're surprising. It's like you are in the latest Die Hard sequel, The Transporter (the first one; not the second one), a Bond movie, or a Schwarzenegger movie. But the good news is that things always end happily -- the main character (the customer) never dies off and goes to the competition.

Second there are the Comedy customers. Just like the main characters in a Woody Allen film or a Mike Myers movie, these customers are basically happy. They enjoy your products or services, and you have fun with them. These customers do not always know the deepest details on how your products or services provide solutions to their business problems, but they renew their license or subscription with you annually because they recognize that you provide a better, faster, and cheaper product or service. There's a little drama in the relationship, but there are lots of laughs and the relationship is very good.

Third, there are your Documentary customers. These customers are using your products or services because they have no choice. Like in Al Gore's movie, the need to work with your company is An Inconvenient Truth for them. Many of these customers have outside services companies (such as law firms, accounting firms, etc.) driving demand for your products. Thus it's hardly surprising that their relationship with you is almost always as serious as global warming. Deep down, there might be some joy in this customer's experience with your company, but the sense of mandate is behind all their dealings with you, lurking like Marley's ghost.

Fourth, there are your Drama customers. Hold on to your popcorn when you deal with these folks. They've had negative experiences with other companies and naturally assume you're going to be the same. They may even admit “We’ve been screwed before.” Often their purchasing department is behind the drama, and politics engulfs all purchasing decisions. These movies last longer than comedies because there are more people to convince. There are also occasional surprises, and the user experience is objective and complete.

Fifth, there are your Horror customers. These customers are not prepared for your product or service, and they have problems with it no matter how much effort you put in to make them satisfied. Then bad stuff happens, like when the giant amoeba-like alien attacks the town in The Blog, or that damn tape in The Ring leads to all kinds of blood and gore, or Freddy vs. Jason, or Lassie. Politics surround the initial purchase, and there’s more politics after the deployment. Then your partners get involved and somehow mess things up more. There are all kinds of surprises – the most common being that these customers don't use the technology they've purchased. This movie ends like Friday the 13th or Alien, where no one gets out alive. I often think of HP’s customers in this movie.

Sixth, and finally, there are your Musicals customers. This type of customer is driven by one evangelistic character, like Robert Preston in The Music Man. (Remember “76 Trombones”?) The evangelist loves your products, and he or she gets you their company's business. Then there is a cast of characters who follow this main character; they, in turn, have positive experiences with your company, products, or services. There are good feelings about you throughout the company on many different levels, your products thrive, and there is excellent word-of-mouth. There is something special about this genre: It does not come along many times in business. It’s special. The company knows it, and so do the customers. Often there is a cult around your company, like there is around the Rocky Horror Picture Show. For some reason, I always think of Apple’s customers being in a musical.

Okay, I know what you're thinking: What sort of customers does Black Duck have? It turns out that Black Duck’s customers, generally speaking, start out in a Documentary that turns into a Musical Comedy type of movie. They are required to use Black Duck because of license obligations and other IP accounting requirements. But soon there’s the fun of discovery, improving processes, and transforming the company. Eventually users are trumpeting – or is it tromboning? -- the virtues of Black Duck.

Really, that’s usually how it goes. (I’m not Jim Carrey in Liar, Liar.) Have we experienced some Action & Adventure and Horror customers? Yes, but I hasten to add that it’s usually our competitors' customers who end up in those movies. We end up rescuing them, and I'm happy to say that they live happily ever after.

Thursday, March 22, 2007

The Benefits of Having a Customer Advisory Council

It's a cliché that successful businesses listen to their customers. To that end, companies use tools like email, blogs, and live chats to glean actionable intelligence. All of those methods have their place, but successful companies know that nothing beats a Customer Advisory Council (CAC).

The company’s CAC is a valuable part of the ongoing communications mix with established and potential customers.

Just what is a Customer Advisory Council? It is a representative group of customers that offers a regular, systematic and coordinated method of gathering customer feedback. CACs can potentially be involved in every step of the sales cycle and in the subsequent product deployment and end-user phases.

What does a company get out of a CAC? If a CAC is done well, the answer is a lot. For starters, a company can get information about:

· Features and use cases for present product offerings

  • Pricing
  • Packaging
  • Positioning
  • Demand for new products
  • Partners and channels
  • Marketing communications
  • Competition

This information can help a company drive sales, move to a practical solutions business model, and realize operational efficiencies ultimately leading to greater profits. When executives are in close contact with customers, they begin to think like a customer, and that should lead to greater satisfaction for customers and greater profitability for the company.

But there's no just-add-water approach to establishing a proper CAC, especially as a startup or emerging company. It is really hard to ask the right questions, establish a winning format, and share and act on the information coming out of a CAC while other market forces are taking up all of your time.

Fear not, though: the situation isn't hopeless. Experiment to get a CAC that works for your company. Look at it like a Board of Directors meeting, and treat all attendees equally—even if some customers are bigger customers than others. Assign the moderator duties to officers who have that talent to ask the right questions. Then start planning your first CAC, with input from attendees, six months in advance. And don't be a cheapskate: spend the money on great food and facilities. In short, make the CAC part of your company’s priorities.

Here's the bottom line: Startups or emerging companies need a CAC to stay on the cutting edge, but they have to be prepared to invest a lot of time and effort in getting a CAC right. Take my word for it, though: A CAC is well worth the effort.