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
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
Enhanced Safety and Security Feature Bundle
Carmakers are offering more software features to consumers and fleet owners to support automated and safe driving. One of the main challenges carmakers face in realizing the full potential of automated driving is building safe and accurate systems in a scalable, cost-effective way. Supporting the myriad of models, features, sensors, and country regulations can be daunting for our competitors.
Omniware Approach
By configuring the industry’s most sophisticated product hierarchy and attribute feature tree, automakers can simplify the management and changes to safety and security bundles. Usage analytics capture when customers enable or disable features or upgrade to different vehicle bundles. Vehicle sensor data can be transmitted from the connected vehicle cloud to Omniware’s billing transaction data hub where the automaker's billing rules and ratings are applied.
Benefits
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Management of products, product bundles and product hierarchies across global regions
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Enable revenue models that were not previously possible
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Allow customers to upgrade and swap features and bundles
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Life-cycle management of product bundles over model years
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Consistent application of product bundles for fleet owners who operate in different countries & regions
Convergent Billing, Vehicle Cloud, Distributed Invoicing
Kathy, who is employed by FleetCo, picks up a new truck from a TruckCo dealer. Kathy’s employee ID and FleetCo profile is submitted to the TruckCo billing system.
At the end of the month, TruckCo billing system calculates all charges for FleetCo from TruckCo and 3rd parties. The charges on the invoice for Kathy, include:
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A mid-month start of subscription of a TruckCo vehicle Advanced Driver Assistance feature
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Subscription to safe driving via On-Board Diagnostic device for 3rd party insurance monitoring
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Subscription to 3 modules of a fleet management app, by a 3rd party fleet management software company
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A safe vehicle monthly status report, with green, yellow, red flags. There is a yellow flag for an airbag recall
The billing system issues 10 invoices - one for each of FleetCo’s regions. Each invoice is further categorized by department and employee. FleetCo requires that each employee receive an individual invoice and each of FleetCo’s 10 regions receive a consolidated invoice. Kathy’s invoice provides her with an explanation of the services charged and a video clip of an autonomous vehicle (AV) software enhancement and an “intelligent speed assistance” feature available as a trial to those who sign-up. Kathy approves her respective charges by the embedded approve button, and clicks the “Sign Me Up!” button for the AV software feature trial. The FleetCo regional office then submits payment for their invoice which is reflected as a paid receivable in the TruckCo billing system.
Omniware Approach
FleetCo’s Price plans are managed in a Customer and Price Plan attribute feature tree in Dynamics Billing. All consumption transactions are received from TruckCo’s internal systems and 3rd party companies and are mediated by Dynamics Billing Transaction Hub, which assesses, merges, and matches transactions for billing. Invoice distribution is controlled by FleetCo’s Customer attributes in Dynamics Billing.
Benefits
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Convergent billing of all products & services consumed in the vehicle platform, whether consumed as TruckCo features or from third parties
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Meeting the customer's needs for distribution of invoices from all vendors and TruckCo’s services
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Delivering and billing for services using the revenue models most appropriate for the service
EV Charging for Residential and Commercial Multi-tenant Buildings
Electric Vehicle usage is skyrocketing. Users want charging stations available for use on every corner. Condo boards, property managers, residents, and commercial tenants want to have EV charging stations available at their residence, for their guests, and at the workplace.
Challenge
Multi-unit commercial and residential buildings face unique challenges to implement EV charging. EV utilization is growing every month - until there is a need for EV charging in each parking spot, EV charging stations will be shared for residents & tenants of the building.
Omniware Approach
Dynamics Billing is built to integrate with third-party EV Charging hardware. Dynamics Billing can identify the EV as a vehicle of a resident or guest and enable point-of-use billing and payment collection. If the EV is a resident’s vehicle, the billing item can be combined with the resident's utility consumption on a convergent invoice.
Benefits
Dynamics Billing enables property managers to offer and bill for EV Charging to their tenants, residents, and guests.
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Convergent billing of EV charging with utility bills
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Point of Use EV Charging for guests
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Earn LEED points and other green building certifications and comply with any local EV regulations