Richard White, WiseTech Global and CargoWise CEO, recently featured in a series of videos developed by Global Logistics Media providing insights from logistics leaders across the Asia-Pacific region.
The project brings together executives from some of the most influential companies in the world to inspire, educate and provide critical insight for logistics businesses wanting to move forward.
In this video, Richard reveals why CargoWise sees traditional software contracts as a roadblock to progress and why giving customers real freedom brings real success.
“We believe that the only rational model is when the customer is successfully using a software, as they use it, they pay for it. We have removed all the upfront costs for acquiring software with the cloud; we've removed all the upfront costs for acquiring the hub and the infrastructure; and we won't let a customer commit to a long-term contract until they have proved that they want the software. We want the customer to be able to walk away if they're unhappy.
“We want that because we want to take all the risk off the table, away from the customers and own it ourselves. We want to say: look, you pay a very small deposit just to start which you'll burn against the usage of the software in the first month or two—then you get to use our software. We’ll provide you with free educational resources, we give you a relationship manager to help you onboard, we’ll do everything we can to help you migrate your data off your old system—we’ll even give you a dispensation for the cost of those conversations. Nothing upfront other than the small deposit—if you don’t like us or don’t like the software, you can walk away at any time.
“After six months, if you want the discount for commitment, we’ll let you sign a commitment then and we’ll back that from the very first day, as if you signed it the first day. You'll get the discounts that you would’ve gotten for commitment even without the commitment. We want the customer to feel that all the pain and risk and cost is on us until the customer is successfully using the system.
“If you think about it, what we’re saying is, we’re incredibly confident about our solution. We know that if you the customer do the right things and get your staff trained, which we provide free, then when you use the software, you'll feel more comfortable.
“If a customer’s unhappy—it doesn’t matter whether there's a contract in place or not—they will breach, they will walk, because they're unhappy. If they're happy, they’ll stay even if there isn’t a contract lock in. And so, what we've realized is that the best contract you can ever have with your customers is the best software without the terms and conditions that cause them to feel like they're having their arm ripped up their back. Getting rid of deposits, getting rid of big upfront payments, getting rid of enormous tied complex contracts has been a fantastic thing for this business and a fantastic thing for our customers.”