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.
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Real Time Pricing incentivising customer loyalty
Real Time Pricing can greatly enable data driven businesses. A company can use data and pricing to attract and retain customers or provide value added services. These mechanisms can enable a long term competitive advantage against less capable competitors.
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: Condominium businesses are looking to create a revenue model that will ensure long-term customers in a highly competitive market. Condo corps provide various services to residents and nearby customers, while also competing with the similar services offered by local competition. They need a way to calculate loyalty incentive pricing to attract and retain customers.
Omniware Approach
Using Dynamics Billing, a service provider can incent loyalty with its customers by directing them to available service options through 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 situations. Moreover situational rules, such as revenue thresholds, can be applied to offer customers pricing unique to their segment and situation.
For example, by looking at the various monthly costs that current condominium customers pay for condo services, such as rent, parking, using the party room, etc…, condo corps can incent loyalty by rewarding purchase of additional services (such as laundry, sports equipment, EV charging) above a revenue threshold. These additional purchases can be offered at a discount.
Benefits
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Maximize revenue
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Improve customer satisfaction
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Incent customer loyalty
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Improve the value of services for customers by recognizing their unique situations.
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Improve market share by creating loyalty through situational awareness
