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.
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
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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.
