Companies can use pricing to reflect the value of a service to a market. But when you connect pricing to situational demand, companies can create increased value and competitive differentiation.
This is done using data from IoT sensors or operational systems that can provide insights into usage, capacity, availability of assets or customer behavior, which can then be used to guide a customer’s behavior through pricing incentives.
.png)
Real Time Pricing via customer behaviour insights
Companies can use pricing to reflect the value of a service to a market. But when you connect pricing to situational changes in supply or demand, companies can create increased value and competitive differentiation. Data from IoT sensors or operational systems can provide insights into usage, capacity, availability of assets or customer behavior, which can then be used to guide a customer’s behavior through pricing incentives.
Challenge
Pricing services for broad markets is very general and causes money to be left on the table. Not all customers, in all segments, in all locations, in all situations will value your services at a similar price. Connecting pricing to customer situations will enable you to maximize revenue and provide optimal value to customers.
Example: A laundromat business finds that some locations can become over utilized, while other locations are being underutilized. It wants to better balance its machines capacity and location availability to avoid customer frustration waiting in line for machines and direct them to available machines in other locations at potentially lower prices.
Omniware Approach
Using Dynamics Billing, a service provider, such as a laundromat business, can provide greater convenience to its customers by directing them to available service options by offering incentive pricing. Dynamics Billing has a powerful data mediation hub, which assesses data from IoT sensors or operational systems for the purposes of rating specific customer types. Moreover situational rules can be applied to offer customers pricing unique to their segment and situation.
For example, the laundromat provides a web app to direct customers to the closest laundromat. Service utilization is tracked by IoT sensors on each machine. When a location becomes >80% utilized, the Dynamics Billing real time pricing algorithm offers customers incentive pricing at neighboring locations.
Benefits
-
Maximize revenue
-
Improve customer satisfaction
-
Improve the value of services for customers by recognizing their unique situations.
-
Improve market share by insights of situational awareness
-
Reduce maintenance costs by spreading utilization of machines / equipment facilities
Omniware Dynamics Billing is integrated with Microsoft Dynamics, which allows you to enhance your ERP / CRM system with powerful billing capabilities and a familiar interface.
