What a lot of people who comment on the Xero Limited share price don’t seem to realise is what Xero Limited actually does.
They make their customers happy by providing them a product that they like at great value.
Here are just a few things I’ve noticed:
- Software that is a lot easier to use than their competitors. People who have used other systems are over the moon with how easy Xero is to use.
- The features that are packed into Xero are what their customers need, anywhere, anytime.
- The value of the product is excellent for its target market.
- Enabling other companies to integrate their products.
- Accountants and other advisers can see the same data as their customers.
- The user experience is a top priority e.g. natural language rather than accounting terms are used.
All the above (and more) helps businesses and other organisations concentrate their efforts on serving their customers and improve their bottom line.
Looking at two key points of difference that I think put Xero ahead of other applications, they are the bank feed reconciliation process and the number of add-on or third party applications available.
The bank feed dashboard basically shows the user their overnight balance and number of un-reconciled transactions. One click later and transactions are matched to existing transactions and “learned” for next time or transactions and contacts are created on the fly. It is so simple, even I can use it.
Add-on products from other companies that work with Xero number around 200. This is a win-win-win as it enables Xero Limited and the add-on companies to stick to their respective knitting so to speak and concentrate on what each does best and customers have systems that help their business. Xero essentially gets extended into further functionality enabling Xero to be used in many different industries. In short, each product fills a gap of the other in a complementary way so customers get the best products.
Naturally no package suits everyone and there are organisations that are not suited to Xero. Obviously if there is a lack of internet capability or performance then Xero isn’t going to be suitable. Xero is also not necessarily suited to high volumes of transactions and to their credit, Xero Limited, are up front about that.
Another positive outcome of using Xero is that accountants can be proactive and help their Accountants see the same data as their clients and also become more of a trusted advisor rather than just working on the compliance or annual accounts.
So long as the product retains its ease of use, functionality and value then the future should be bright for Xero and their happy customers.
If you want to know more about Xero then let me know. The Xero web site and blog are located at www.xero.com.