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
Uniform Billing in Franchise Businesses
Most franchises use their local software or methods for invoicing and collections. The franchisor has no control over how franchisees are invoicing clients. Presenting a uniform customer experience to customers that span franchisee boundaries do not receive uniform service reporting, invoices and payments.
Challenge
Customers that span franchisee boundaries do not receive uniform service reporting, invoices and payments. Franchisees do not issue compliant invoices, causing delays in collections.
Omniware Approach
Omniware Dynamics Billing uses an innovative and efficient structure to allow businesses to identify upstream and downstream price plans. Price plans define how much customers are charged for products or services. Price plans are also used to automatically calculate fees that franchisors or channel partners are paid for their products, services or Intellectual Property. Invoices or Payment statements are customized for each franchise or channel partner.
Benefits
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Reduce time and improve accuracy of franchisor or channel partner compensation
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Manage accuracy of complex compensation methods / amongst channel partners
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Easily automate financial terms in contracts into compensation flow
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Ideal for advanced compensation situations such as for Intellectual Property and Data Usage rights
Maximize value of perishable goods
Companies in agriculture, food service, pharmaceutical, medical, chemical or in other industries that make, or distribute products with defined lifespan realize that the value of their products diminish as expiry dates approach. These companies require highly efficient supply chains and manufacturing processes in order to optimize the lifespan of their products. Any disruption to logistics, distribution, or shortage of input products will reduce lifespan of these products.
Challenge
Products with a defined lifespan will be typically priced based on date. Products that are close to expiry will be discounted based on the length of time remaining for distribution to final markets. However, the value of these goods will degrade even further if there are disruptions to refrigeration, cold chain logistics delays or reduced availability of input products that comprise the final product. Value can be offset by increased demand for goods.
Example: A medical supply business makes immunotherapy products for cancer and tuberculosis treatments. Once created their products must be refrigerated and protected from light. Normal lifespan of the products are 12 months. However, If the products are removed from refrigeration or exposed to light they must be used within 8 hours before expiry.
Omniware Approach
By connecting pricing to product life, demand and to the points in the supply chain that degrade product life we can maximize product value. Using Dynamics Billing, a manufacturer or distributor, such as a medical supply business, can increase the value of its products by connecting IoT sensors in refrigeration, storage monitoring systems in the cold chain, GPS location sensors to determine distance to final markets and to sales and sales forecasts from ERP systems. These operational and sensor data are fed into Dynamics Billing which uses these inputs in pricing formula for specific customers and price plans to determine a real-time situational price for the products. The real-time prices are provided to customers via a WebApp and invoice charges determined.
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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. So that each product is priced according to the situational value of the customer.
Benefits
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Adjust pricing based on real-time condition monitoring of refrigeration, logistics, inventory and other factors in order to maximize revenue
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Reduce product wastage
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Improve product safety and reduce errors
Maximize profits using Customer perception of Value
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. 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: An automotive service repair company provides services to commercial fleet vehicles. Fleet vehicles that need urgent repair are often turned away because service bays are full. Fleet owners have to seek alternate repair providers as having vehicles unavailable impacts deliveries, sales and their customers satisfaction.
Omniware Approach
Using Dynamics Billing, a service provider, such as an automotive repair business, can increase the value of its services by offering maintenance services at standard rates and urgent services at premium rates. Moreover, the premium pricing can be set according to customers' contracts. Customers that require standard services are provided standard prices until the forecast utilization of services bays hits 75%; this incents customers with planned maintenance services to select dates that have less utilization (and later dates). Customers that have urgent needs can select sooner dates with availability but with premium 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. So that each category of service is priced according to the situational value of the customer.
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
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
Partner Compensation
Franchise businesses and businesses that use channel partners for sales have difficulty in tracking compensation splits amongst partners. Franchisors or product owners have no control over how franchisees or channel partners invoice their clients or collect payments.
Challenge
There is no uniformity in the contract terms and data amongst franchisees or channel partners. billing data collected leading to inaccurate revenue reporting. Franchisees or channel partners do not send compliant invoices, causing delays in collections.
Omniware Approach
Omniware Dynamics Billing uses an innovative and efficient structure to allow businesses to identify upstream and downstream price plans. Price plans define how much customers are charged for products or services. Price plans are also used to automatically calculate fees that franchisors or channel partners are paid for their products, services or Intellectual Property. Invoices or Payment statements are customized for each franchise or channel partner.
Benefits
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Reduce time and improve the accuracy of franchisor or channel partner compensation
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Manage accuracy of complex compensation methods / amongst channel partners
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Easily automate financial terms in contracts into compensation flow
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Ideal for advanced compensation situations such as for Intellectual Property and Data Usage rights
Billing for Variable Usage of Services
Companies that provide services to businesses provide a range of services and revenue models to their customers. Customers prefer to pay for what they use. Business Services want to better reflect their customers' consumption and to monetize this revenue. Business Services companies, such as franchises, facilities rental, asset leasing, maintenance services, transportation services, can offer core services and numerous additional services to satisfy the needs of their customers. For example, Facilities rental companies can charge monthly fees for offices, virtual receptionists and mailboxes. Moreover they can offer variable items which can be charged on a usage basis for items such as meeting rooms, phone lines, calls answered above a threshold, printed pages above a threshold.
Challenge
Calculations of all the base and variable charges can be overwhelming for Business Services companies to manage effectively in their billing system, especially if they are using their accounting system to calculate charges and issue invoices.This complexity is heightened if there are different contract terms with different customers, such as those who occupy a large share of office space and expect lower per office base fees.
Omniware Approach
Omniware Dynamics Billing uses an innovative Billing Mediation Hub to capture all usage for each customer. Usage transactions can be uploaded via files, captured via APIs or IoT devices. Usage transactions are used in calculating billing charges, can be communicated on invoices and can be used to inform decisions of what additional services to offer customers.
Benefits
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Allows Business Services companies to offer additional services required by customers
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Reduce time and improve the accuracy of calculating complex charges for each customer
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Easier to manage invoice charges from contracts with different terms for different customers
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Ideal for advanced usage situations such as for Intellectual Property, Data Usage rights and metered consumption in cloud services or utilities.