A Dynamic Pricing Strategy Approach Gives Customers Real Choice
In the digital economy, it’s important that businesses can create pricing packages to meet customer needs. A flexible pricing strategy stems from adaptive billing systems that don’t get pinned down to one pricing model. Today’s customers expect more than flat-rate subscriptions. Your business needs to offer the options they demand.
BillingPlatform’s supports every business model and offers the complex pricing packages that customers expect. The following video highlights many of the possibilities we provide.
Watch this video to learn more about BillingPlatform’s flexible pricing capabilities. This short video demonstrates:
- Shortfalls of legacy systems
- Complex scenarios supported by BillingPlatform
- Pricing and rating options that lead to business success
Selecting a billing solution that meets your pricing and rating requirements can be a daunting task. In fact, many billing systems look the same unless you know which questions to ask. Download this whitepaper to discover 10 Questions to Ask Billing Vendors.
What are flexible pricing capabilities and dynamic pricing capabilities?
Flexible pricing is the ability to support any pricing strategy from the basics, like recurring fees, consumption-based tiers and various subscription models, to more advanced combinations of existing pricing models or even pricing models no one has even dreamed up yet.
Having a flexible pricing capability means that you are not tied to a single billing model or industry specific standard for rating. Freeing up your sales, marketing and product development teams to create new pricing packages. For example, flexible pricing would allow a colocation company that generally charges on a flat, subscription basis to shift to metered or usage-based billing and charge for resource consumption.
Dynamic pricing adds a powerful new dimension to your monetization strategy by automating changes in pricing methods and amounts in real-time. Dynamic pricing builds on a flexible pricing foundation to allow users to price products contextually, such as in packages or across a complex customer hierarchy.
Dynamic pricing hinges on the ability to separate product definitions from their rating methods and associated rates. The benefits to organizations are many, for example a product like phone or conferencing service can be defined as a monthly subscription by default but become a metered product at a particular usage threshold or when purchased within the context of a package containing other products and services. Another example of dynamic pricing is the ability to define rates in the context of an account hierarchy.
BillingPlatform allows you to define a single corporate rate at the top level of a multinational account hierarchy, allowing all sub accounts to inherit these corporate rates and overrides certain rates for specific products at a regional level. To illustrate, consider a multinationaltravel services aggregator who sells the same services to other large multinational firms. Rather than define and manage contracts for each subsidiary of the multinational customer, the organization can define multiple, currency specific rates on a single corporate contract. The same can be defined for the travel services aggregator itself with the ability to define currency specific global rate cards that can be applied automatically across a multi-currency customer base based on the currency in which the customer is billed.
Consider other scenarios with complex customer hierarchies, like intercompany and reseller billing with advanced charge routing and splitting capabilities, where a single usage event rates multiple times across several related accounts with different rate structures. Use dynamic charge routing to split a single line of data from a delivery or fulfillment system and rate this charge at both a retail and wholesale rate for different customers within the intercompany or wholesale retail relationship. So. if you sell wholesale products to resellers who also need a billing for their retail customers, you can offer an advanced differentiating suite of retail billing services with minimal effort.
With dynamic pricing capabilities you can also generalize pricing along specific groupings using global rate classes. For example, while rates can be defaulted at the product level, it may make more sense to model a set of default rates for different contexts like regions or customer entitlement levels.
Consider this: a company that wants to sell voice over IP services and broadband services to millions of subscribers want to have a collection of base rates defined for different customer types, such as business and residential. Residential customers are typically lower revenue but represent high volume of customers. Here a set of global pricing plans that define rates for large group subscribers makes it easy to provision each customer from a self-service Web portal where the customer can choose from gold, silver or bronze plans. These global plans can then be modified centrally for periodic rate changes without having to adjust each individual subscriber. In contrast, higher value business customers will demand more specific, tailored rate plans and product combinations and would not fall under a global or generalized structure. A dynamic pricing model can give you the ability to generalize overall pricing while overriding and adding specific rates to specific customers.
In BillingPlatform’s case this pricing flexibility and power is made possible by an underlying metadata platform and the ability to define specific product and account data elements for use in formula-based rates or matrix-style pricing. For users, that translates into point-and-click configurability for virtually any charging scenario--an improvement over a full-blown IT development cycle, which is often the only alternative for enabling such specific rating behavior.
In today's business climate, flexible pricing capabilities may not be enough to manage a diverse multinational enterprise product and customer base. With flexible pricing capabilities, companies can be more agile and reduce the time associated with rolling out new products and supporting evolving customer needs. Dynamic pricing allows for diverse product and service offerings that live and breathe within an evolving business ecosystem, providing a level of intelligence to rating and monetization that enables the realization of creative pricing strategies in real time.
If you want to dynamic pricing capabilities, discover more about BillingPlatform.