Reckon Half Year Results 2007
Professional Division (APS) Success Factors
APS revenue growth has come from focusing on 5 aspects of
the business:
1. |
Positioning – Traditionally the majority
of software providers to the profession have operated
in a product/price dimension. The market perception has
been that the technology is similar, so the choice has
been about price. However, APS has stressed that while
price and functionality are certainly factors in the
decision, they are not the deciding factor. APS have
continued to focus more on value and building exceptional
relationships with clients and the key difference in
this crowded market is its people and service delivery.
Following an audit of its existing client base, APS has
recently expanded its client management program and services.
Audit feedback highlighted strong demand by clients for
additional products and services (82% of clients are
using 3 or more core APS products). |
2. |
Understanding the client’s business – A
key differentiator for APS is their understanding of
their client’s business. APS delivers higher value
to its clients through their experienced team, who are
able to deliver solutions that drive higher business
value for their clients, with technology as the enabler. |
3. |
Growth from new and existing clients. A large number
of new firms continue to move to APS each year. In addition,
there has been a much higher take up of additional products
and services by clients. For example, in addition to
the Practice Management and Business Intelligence tools
for which APS are renowned, there has been a high take
up of compliance and productivity tools such as Accounts
Preparation, Desktop Super, Tax and Document management. |
4. |
Track Record – APS has the know-how, the expertise
and a strong track record in the market. APS is the supplier
of choice for the majority of the top 100 accounting
firms, with around 70% of these firms depending on APS
for their Practice Management and compliance needs. In
addition, two of the Big 4 firms have recently switched
to APS. |
5. |
Technology – APS have and continue to lead on
the technology front. APS was the first to market in
1995 with a scaleable Microsoft SQL Practice Management
solution, also first to market with an SQL Tax and Accounts
production solution. .Net Desktop Super (also on SQL)
followed and APS will be the first to market with a new
.Net SQL Tax solution early in 2008. |
Business Division (QuickBooks, Quicken, Reckon.Tools) Success
Factors
Business Division revenue growth has been due to the following
factors:
1.
|
High upgrade rate: Reckon Business Division
has undertaken a successful upgrade campaign (including
cash-back and incentive offers), which has resulted in
strong update figures. |
2.
|
Retail market share – Reckon Business Division
has increased its market share in retail through investing
in the relationships with key stakeholders. We engage
with our retailers at all levels of management (from
CEO down to field level) leading to stronger trust of
Reckon than competitors (who don’t have this level
of retail engagement). |
3.
|
Technology – Reckon has leading edge products
that are end-user focused and good value. Quicken & QuickBooks
has ensured that its technology is upgraded to keep its
products in step with, if not ahead of, the market. For
example, all Quicken/QuickBooks products were Vista compliant
so customers have the option to upgrade to that operating
system when/if they are ready. The next version of QuickBooks,
QuickBooks Obi, uses SQL technology and will represent
a step-change in functionality, ease of use and scalability
(500 new features, including Google functionality, and
up to 30 concurrent users). |
4.
|
Growing existing customers - Higher level of sales
from existing customers in Upgrades, Advantage & Subscription.
The Business Division’s online sales and marketing
platform has made it easier to segment customers precisely
by product version and has made it easier for existing
and new customers to navigate the website. Reckon Business
Division has increased its online presence by 200% (as
measured by independent web monitoring companies) |
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