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
Transforming Traditional Products to the Digital Economy
The digital economy allows organizations to iterate and adapt their products and services on the fly. This creates an explosion in the products and services they offer in each market.
Challenge
Organizations often have large and constantly changing portfolios of products and services. Organizations can iterate different approaches in each market in which they operate with Omniware's solution. Our billing system manages large and constantly changing products and service offerings while still allowing them to go to market quickly.
Omniware Approach
Dynamics Billing enables organizations to quickly set up products and services into natural hierarchies. New products will adopt characteristics from “parent” products and pass along characteristics to “child” products. Changes across entire portfolios can be made with only a few clicks. All customers are managed with a full suite of subscription management features, like entitlement management, cross-sells and upsells, and customer and business insights.
Benefits
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Effortlessly create and manage products and services as required by your customers
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Design, test, and optimize pricing plans based on how your users are using your products
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Test different charging methods based on customer, product, and usage attributes in the calculation of pricing
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Bill when and how you want with numerous billing options with easy-to-read invoices
Beyond Bronze, Silver, and Gold
Good news - you have disrupted the industry by creating a great, easy to use and easy to acquire product. You offer customers product bundles that allow them to use more of your capabilities - Bronze, Silver, and Gold. However, mature customers want to consume your products in unique and tailored ways. They will pick the solution provider that can provide products and pricing that most closely match their budgets and consumption needs.
Challenge
Your customer service agents are constantly being asked about different combinations of product offerings. Your current billing solution cannot accommodate a large and changing portfolio of product and service bundles. You are experiencing churn with many new customers who cannot get the combination of features that they want.
Omniware Approach
Dynamics Billing offers innovative features to manage constantly evolving arrays products and services. The modern architecture of Dynamics Billing delivers a strong approach to identifying, merging, and matching billing transactions from operational systems and enables the billing of micro services. Organizations can offer product features on an a la carte basis before a customer commits to the next tier of products and services.
Then, you can enable a customer-centric revenue model: At the end of the billing cycle charge:
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25 users on a Silver package
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Consumption of 125 units of a la carte features,
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Feature X, 25 times
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Feature Y, 60 times
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Feature Z, 40 times
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List all users, their bundles and their a la carte usage on a consolidated invoice
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Issue the consolidated invoice to the corporate office
Benefits
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Offer customers the product features that are best suited to their business
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Upsell customers to higher bundles based on their individual consumption of features
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Enable granular revenue models
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Minimize billing inaccuracies
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Engage customers during billing to upsell or enroll in new programs
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
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Maximize revenue
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Improve customer satisfaction
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Improve the value of services for customers by recognizing their unique situations.
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Improve market share by insights of situational awareness
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Reduce maintenance costs by spreading utilization of machines / equipment facilities
Advanced Invoicing for Complex Customers
You have created a desirable product and offer various bundles to customers. Organizations want to monitor the use of your products by all their employees. Additionally, they want their cost centers to review and pay consolidated invoices.
Challenge
Your existing billing solution cannot accommodate customized invoicing for enterprise organizations. Your billing staff cobble together workarounds to track employees in an organization, download individual invoices, consolidate and issue invoices as customers require them. While it works for you now, you want to offer customer self-service for how customers want to receive their employees’ invoices.
Omniware Approach
Dynamics Billing offers unique features to manage customer attributes which can then be used for consumption, charging, or invoice distribution. Clients can enable customer-centric invoice distributions on our platform. For example, at the end of this month’s billing cycle:
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Consolidate all invoices and aggregate amounts owing by your customers’ 10 regional offices
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Issue separate invoice copies, one for each employee which shows their consumption of a la carte features and their selected bundle (bronze, silver, or gold) for the billing cycle
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Display a button on each invoice to allow customers to change their bundled package
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Display a button on the consolidated invoices to allow your customers’ AP department to pay
Benefits
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Deliver customers the invoicing and messaging that is best suited to their business structure
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Eliminate manual workarounds and minimize billing inaccuracies
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Engage customers during billing to upsell or enroll in new programs
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Offer customers’ management control over their consumption of your services