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ACCELERATED SHIFT TOWARDS ONLINE

ONLINE APPLICATIONS AND SERVICES

Olivier THIRION

COO e-Commerce

“ Early on, Avanquest Software recognized the full potential of online in software sales and has continued to grow and innovate while adapting new marketing techniques. With double-digit growth in all territories and profitability rising sharply, we have made the web one of our best allies in the Group’s growth.

NEW MODELS GENERATING RECURRING REVENUES

ONLINE AND OFFLINE SALES COMPLEMENTING ONE ANOTHER

Selling software in the form of online services, as a complement to the classic models, will enhance the Group’s recurring revenues by offering users far more flexibility. Rather than selling a software program with multiple functions, all of them being rarely used, the offer is broken down to long-term leasing of upgradable applications that are better suited to users’ needs.

Plus, more and more software is pre-sold by Avanquest Software with automatic-update contracts covering several years, which make both user and revenue more secure.

Synergy between online and offline sales is a priority for boosting business, with no significant risk of cannibalization, since the targeted audiences are very different. On the one hand, customers who bought their software in retail stores are regularly offered online updates, complementary functions for their applications, and additional software that may interest them. On the other hand, the high visibility of internet campaigns supports the brand recognition of Avanquest titles and generates retail sales. The synergies may also take the form of cards sold in shops, alone or with partner materials, making it possible to download or offer software.

PROMISING, SUSTAINABLE AND PROFITABLE GROWTH

A GLOBAL MARKETING APPROACH

For the last three years, the Group’s sales on the web grew by 47%, with a steady improvement in margin and increasingly relevant services provided to Avanquest Software’s customers. These achievements are the result of focusing efforts on the most dynamic market segments, designing software specifically adapted to internet users’ needs, and consolidating the business to make it independent of the seasonal variations by generating recurring revenue.

Avanquest Software’s teams of specialists work on all markets to maximize sales, by e-mail, via search engines by optimizing natural and paid referencing, and through dynamic affiliates that cover smaller territories and niche markets without fixed expenses, and therefore without risk- taking.

The 2011 acquisition of PC HelpSoft also enabled the Group to develop very precise marketing expertise in the sale of utility software in the most competitive English-speaking markets. This expertise is now being expanded to new titles and new territories to strengthen Avanquest Software’s market position, and the initial results are very promising.

www.avanquest.com