| One of the greatest challenges facing software | | | | I was well aware of the strong user group structure |
| developers and software product marketers today is | | | | that had built up around this particular database |
| rising above the noise of hundreds of thousands of | | | | technology. The user group had dozens of chapters |
| marketing messages about thousands of software | | | | across the U.S. and Europe and drew strong support |
| products aimed at businesses. The rise of the web | | | | from the database vendor, itself. |
| has changed how some software is marketed and | | | | Answer the Call |
| distributed. But some things never change. Face to | | | | That's why, when I received a call from the |
| face communications is still a powerful medium. | | | | president of a tiny users group a thousand miles |
| Postage costs have risen dramatically. The cost of | | | | away, and she invited me to attend as a vendor |
| printing is out of control. Hiring direct sales people, | | | | member, I jumped at the chance. |
| while often necessary, creates large management | | | | That first user group meeting was an eye opener. |
| headaches, not to mention high overhead. | | | | We had no signs, very little collateral, and a |
| User Groups Still Live | | | | brand-new product that was essentially untested in |
| Enter the user group. User groups have been around | | | | that market. The airfare cost about $600. It cost us |
| for many many years. If you been involved with PCs | | | | another $150 to rent a table with a plastic table cloth. |
| or Macintosh computers, you may be familiar with a | | | | I went alone to that meeting, scared to death that it |
| number of small computer user groups. What you | | | | would be a complete failure. Before I left, the CEO |
| may not realize, is that many types of | | | | told me he thought I was nuts to spend the money, |
| business-to-business software and many types of | | | | but that it was my budget and if I wanted to blow it |
| hardware have their own user group advocates. | | | | on a rinky-dink user group show, so be it. |
| These user groups provide a useful forum for their | | | | Lessons Learned |
| members, and are often sponsored by the vendors. | | | | I taped a company T-shirt emblazoned with our logo |
| User group participation is often cheaper and more | | | | on the wall behind my booth, because we had no |
| effective than attending large trade shows. You | | | | sign. I hardly knew the product. Although I knew the |
| often get to demonstrate your products in more | | | | kinds of people that were attending, having worked |
| detail and can learn more about your users than at | | | | in the business for over ten years, I was unprepared |
| large trade shows. | | | | for the familiarity that many of the prospects shared |
| User Groups Cost-Effective Marketing for B2B | | | | with other vendors, my competitors. It became clear |
| Software Companies | | | | to me very quickly that there was a strong network |
| For software companies, user groups offer one the | | | | of vendors and prospects in this market. If we were |
| most cost-effective means of reaching highly qualified | | | | to succeed we would have to really hone our |
| prospects. Think about it. These are people who take | | | | message. |
| the time to belong to a group that meets once a | | | | By the time that first meeting was over, I |
| month or once a quarter. These people come | | | | accomplished several tasks: |
| together to learn and share what they know about | | | | - I had made contact with half a dozen vendors. |
| your particular software product. | | | | - I had met with every one of the 150 user group |
| A True Story | | | | members. |
| I was the first manager to be hired by a small | | | | - I had learned that you need to always bring a roll |
| software company in 1996. The four other managers | | | | of tape and a black marker. In eighteen months, |
| were all founders of the company. As such, they had | | | | after more than 50 user group meetings, I was |
| particular expertise in engineering, finance, and sales. | | | | proud of the fact that our participation in many user |
| The entire company marketing plan consisted of | | | | group meetings provided support and information to |
| running one ad every other month in one industry | | | | the kind people in our industry. I was also proud of |
| journal and attending two large trade shows a year. | | | | the fact that in eighteen months our revenues |
| In addition, a quarterly direct mail piece was prepared | | | | increased in that market from 0% to 34% of our |
| and sent to an in-house list of 80,000 prospects. | | | | overall revenues. There is no doubt in my mind that |
| Sales had steadily risen to approximately $2.5 million a | | | | these revenues, which in the second year amounted |
| year. Unfortunately the company's products or | | | | to a 500% increase in revenues over that first year, |
| database support tools aimed primarily at | | | | were directly attributable to our user group |
| programmers of a particular niche database. Our | | | | participation. |
| company had engineered two new product versions | | | | Look for some group that supports your product. |
| for a much larger, but much more competitive | | | | And don't neglect the online communities springing up |
| database system. The challenge was to open up a | | | | all over the web. Find and join those that cater |
| new market in which none of the founders had any | | | | specifically to your market and get involved today. |
| experience. | | | | |