Blog

Churn and Satisfied Customers

Posted by Ben Redfield

Feb 10, 2012

Churn is the market term for turnover of clients and is a strong indicator of the health of the software, delivery platform, support, and training for a product. Through the business process
analysis, demonstration of features, prototype, and deployment of a flexible product like Dynamics, you end up with well satisfied customers. Add to that reliable support, a strong software roadmap from the developer, and continued investment in the upgrade of the product, and you end up with a solid product usable for a very long time.

A good analysis of NetSuite churn is offered by Jason Carter in his blog. One must step back from that analysis and ask why the customers are leaving the product so quickly in such high numbers. The comments on the blog post are as informative as the article itself.
An independent analysis of the Microsoft Dynamics Product Roadmaps shows the long-term investment being made in the product line, indicating strong support of Dynamics GP all the way out to version 14—a product life stretching from 1993 to 2014. A product that stays on the market this long indicates there are many happy customers with reasonable options to easily add to their product with developer features and third-party products at an economical cost.
Another sign of a stable, long-term product is the number of third-party product developers following it. Developers get into the guts of product to determine if they want to interface their vertical product or complimentary module to it. Dynamics has a following of thousands of
developers.
Recently, NetSuite’s web site proudly proclaimed the release of a new guide to their product called “NetSuite for Dummies”. I don’t know about you, but if I were a business owner forking over $25,000 to $50,000 a year to NetSuite, I would not want that revenue being used to write a publication referring to me that way. But that aside, the book does raise an interesting point – which product is easier to use, NetSuite or GP? Let’s take a look:
Ease of use – Microsoft Dynamics GP is tightly integrated with the Microsoft tools you use on a daily basis, such as Word and Excel. The user interface has the look and feel of Outlook, which creates a familiar experience for the end-users. You will not find that tight integration in NetSuite Out of the box functionality – a recent Accounting Library study comparing Dynamics GP to NetSuite found that Microsoft Dynamics GP met 84% of typical business requirements, while NetSuite met just 52% of those same requirements. This means that NetSuite users will need to rely heavily on customizations and third party products, which can create problems in NetSuite’s shared multi-tenant environment.
Choice of version – Microsoft Dynamics GP is on-premise, NetSuite is Software as a Service.
Simply put, that means GP users can decide when they are going to upgrade, where as NetSuite users cannot. When new versions of NetSuite are released, the clock is ticking on a forced conversion, which can mean an upgrade when you least favor it.

We have a lot more information on the benefits of our Cloud ERP subscription offering here, at smbsuite.com