NPD Group: Online software sales provide an upgrade of opportunities
TweetFollow Us on Twitter

NPD Group: Online software sales provide an upgrade of opportunities

NPD’s "A Landscape View of Online Software Purchasing 2009" report found that while those customers are increasingly comfortable acquiring their software virtually, (63 percent directly downloaded their purchase versus 60 percent the previous year), 59 percent of all buyers still opted to acquire the physical copy as well. In fact, more than one-third of virtual buyers hedged their download with a request for a physical copy as well.

One aspect of the software business that is increasingly virtual is subscription renewals. Consumers who said they renewed their software products online increased from 30 percent in 2008 to 35 percent in 2009. System utilities software, which includes anti-virus products, experienced a 10 percent boost in online renewals, going from 45 percent in 2008 to 55 percent in 2009 making it the strongest category for online renewals in 2009.

“The core competency of the retail store is the initial purchase, but it’s the online experience which maintains and builds that customer relationship,” says Stephen Baker, vice president of industry analysis at NPD. “The best software opportunities will develop from a recurring revenue model and long-term relationship which the industry has witnessed from the success of software publishers driving traffic to their web sites.”

According to the study 47 percent of consumers purchased software directly from a publisher in 2009, compared to 44 percent in 2008. Most of these purchases were finance related software (76 percent) and utilities software (51 percent).

Online purchases from third party retail sites continue to be an important source of sales, accounting for 38 percent of all buyers. What consumers like about shopping at retailer web sites is very much what they like about retail stores. Price, selection, ease of navigation, and having the ability to purchase other items at the same time were all reasons given by consumers who shopped on retailers’ web sites. What’s driving consumers to publishers’ web sites, however, is quite different.

“Consumers are going to publisher Web sites because they want a direct relationship, and because sometimes sites may offer exclusive products or easy renewal options,” says Baker. “The online software purchase cycle allows publishers to capture and hold buyers by providing both the initial sale and subsequent services, which is much more likely to increase their loyalty to that software title or application.”

 
AAPL
$531.70
Apple Inc.
+0.53
GOOG
$534.81
Google Inc.
+6.19
MSFT
$39.99
Microsoft Corpora
+0.05
MacNews Search:
Community Search:

Latest Forum Discussions

See All
view counter

view counter
view counter
view counter
view counter
view counter
view counter

Zeebox is Now Beamly TV – Still Offers t...
Zeebox is Now Beamly TV – Still Offers the Same Social Networking TV Fun, Plus a New Look Posted by Rob Rich on April 22nd, 2014 [ permalink ] | Read more »
Bandai Namco Unveils Upcoming Slate of M...
At their recent Global Gamers’ Day event, Bandai Namco was largely focused on their console and PC offerings for the upcoming year. However mobile still had a small presence, with some upcoming titles revealed by the company – though few were in a playable state at this time. Windows screenshot, may not be representative of iOS gameplay | Read more »
The Story Behind Grammar Girl’s Grammar...
Learning is so much more rewarding when it’s also fun. That’s part of the reason why recent educational app, Grammar Pop HD, garnered such a positive review from us last week. The brainchild of Mignon Fogarty, otherwise known as Grammar Girl, we were lucky enough to have a chat with her to find out more on how the game, as well as the persona,... | Read more »
Pinnacle Studio for iPhone Review
Pinnacle Studio for iPhone Review By Jennifer Allen on April 22nd, 2014 Our Rating: :: SIMPLY POWERFULiPhone App - Designed for the iPhone, compatible with the iPad Video editing while on the move has never been so convenient.   | Read more »
Taste Savant Review
Taste Savant Review By Jennifer Allen on April 22nd, 2014 Our Rating: :: TASTY RECOMMENDATIONSiPhone App - Designed for the iPhone, compatible with the iPad In need of some new restaurant recommendations? This app will be ideal, with curated reviews of many establishments in New York, Los Angeles, Boston, and Chicago.   | Read more »
Where’s My Water? Featuring XYY Adds Mor...
Where’s My Water? Featuring XYY Adds More Than Just Sheep to the Liquid Physics Puzzler Posted by Rob Rich on April 22nd, 2014 [ permalink ] | Read more »
FarmVille 2: Country Escape Review
FarmVille 2: Country Escape Review By Jennifer Allen on April 22nd, 2014 Our Rating: :: STEADY FARMINGUniversal App - Designed for iPhone and iPad FarmVille is bigger and brighter than ever before, but don’t expect it to sway you if you’re a non believer.   | Read more »
Doctor Who: Legacy receives big update,...
Doctor Who: Legacy receives big update, adds Perk System and more Posted by Tre Lawrence on April 22nd, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Strongarm Universal Mount Hardware Revie...
Made by: Viatek Price: $14.99 for 2 Hardware/iOS Integration Rating: 3.5 out of 5 stars Usability Rating: 4 out of 5 stars Reuse Value Rating: 3.75 out of 5 stars Build Quality Rating: 3.5 out of 5 stars Overall Rating: 3.69 out of 5 stars | Read more »
Boxer Review
Boxer Review By Campbell Bird on April 21st, 2014 Our Rating: :: KO YOUR INBOXUniversal App - Designed for iPhone and iPad Turn your inbox into a task list or tune it to your own needs with this highly customizable, user friendly mailbox app.   | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.