SAP Surprises Me with a Crackerjack Prize Sales Tactic
September 26, 2009
I read an article with some information that surprised me. The story appeared in The Industry Standard and was titled “SAP Offers Free CRM for ERP Buyers”. The article reported that a mid-sized company could buy SAP’s enterprise resource planning system or its bundle called Business All-in-One Suite and get a bonus. When I was younger, I would try to get my father to buy me a box of Crackerjack. I hated the popcorn coated in caramel but I loved the prize. I would get a plastic elephant or a plastic pig. I loved the “prize”. When a giant company embraces what I call the Crackerjack approach to software, I wonder if the “prize” won’t sell or if the “prize” is really what the buyer wants. In either scenario, what’s I conclude is that the idea of getting a customer to license a product that solves a problem seems to need a Crackerjack solution. I suppose there is an upside to this approach. Customers get something as a bonus. The downside is that those who bought the “prize” may find that their purchase has been devalued. Will this boost SAP’s sales? I see this as one more example of big software vendors trying to find ways to prevent a slow decline in market impact and revenue. I have heard that other vendors are bundling high end software with more desirable products in an attempt to get “shelf space” in an organization. The strategy puts pressure on other vendors and may trigger some unexpected cost spikes. What if the free stuff doesn’t do the job. There’s opportunity cost, indirects, and probably consulting expenses. If these mount up, maybe free is not a bargain. Maybe the prize is a booby trap? I just don’t know.
Stephen Arnold, September 26, 2009
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