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Smart Billing - AusCloud Melbourne - July 2012
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Transcript of Smart Billing - AusCloud Melbourne - July 2012
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SMART BILLING
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Agenda
• Pricing & billing
• Pricing models & strategies
• Billing processes
• Case studies
• Wrap up
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Who is David Werdiger?
• Telco & subscription billing & pricing“guru”
• Entrepreneur; ADHD opportunity “juggler”
• Blogger; writer; public speaker
• Founder & director: Billing Bureau, TBG, KISS Mobile
• Several not-for-profit directorships
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Pricing Versus Billing
• Pricing & Billing are two sides of the same
coin – the coin is your revenue!
• Pricing is a marketing function – how
much to charge for a service
• Billing is an operational function – how to
extract that charge from your customers
• Which should drive which? Who is in
charge?
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Pricing models & strategies
• Why bother?
• Freemium
• Subscription pricing
• Value-based pricing
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RevenueCost
Pricing models – why bother?
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Pricing Models - Freemium
BlahBlah
Freemium
• Time/usage-bound
• Feature limited
Why do it?
• Reciprocity: give before you ask
• Use the free service promote your real value. Is the free
version useful? Does it cost you anything to deliver?
• Will it automatically fill a sales pipeline for you? How well
does your service sell itself?
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Pricing Models - subscriptionSubscription and usage based income
• Lowers the barrier to try product and therefore adopt it
• Cost recovery perspective: subscription component can facilitate
recovery of fixed vendor costs; usage component can facilitate
recovery of variable costs; but it doesn’t have to work that way!
• The most profit you will ever make is selling something that is
never used
• Usage based can often help you to price the value you deliver for
more costly subscribers and monetise added features
• One size doesn’t fit all
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Pricing Models – value-based• Think like a customer
• What is the value they are receiving for the
price they pay? Do they correlate?
• What is the opportunity cost? TCO?
• Are you leaving money on the table?
• Using metrics of customer (perceived) value as
a pricing input
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Pricing Models – summary• A sound pricing strategy can help you:
• Differentiate
• Extract more value
• Manage customer behaviour
• Attract different market segments
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Pricing & Billing
Billing
Pri
cin
gS
mar
tS
tup
id
Stupid Smart
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Billing Processes• More than just sending out bills!
• Account creation; credit checks, etc
• Provisioning the service and service attributes &
options
• Bill presentment and delivery
• Customer (self) service
• Payments facilitation: credit terms, reconciliation
• Called OSS/BSS but really part of the billing process
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Cloud Billing Considerations• Billing is complex (in other breaking news,
gravity causes objects to fall to the earth).
• Billing needs to be driven by price strategy
not the other way around.
• Scalability is everything
• Flexibility and adaptability; can it keep up
with the speed of market changes?
• Is billing a nightmare? A distraction? How
‘core’ is it?
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Case Study: EatNowOnline service business, owner with a software
background with a specific niche opportunity.
Challenge:
• Not interested in building and managing a back
office.
Results:
• Automated billing, payments, reconciliations,
collection and commissions.
• Scalable platform for growth.
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Case Study: 365ConnectProperty management and service business.
Challenge:
• Not billing every service. Some customers consuming
more time and cost than others but not reflected in the
price strategy.
Opportunity:
• Capture billing events through multiple interfaces to
ensure everything is billed.
• Facilitated price strategy for “care plans” to be
implemented.
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Case Study: My Tiny AdMobile web sites
Challenge:
• Managing multiple and diverse channels, multi-currency, both
wholesale and retail
• Seeking a pathway to become an infrastructure and cloud
services aggregator
Results:
• Mobile portal for in-person sales
• Integrated service provisioning
• Wholesale billing with “UDR” feed as well as white label billing
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The wrap• Think about pricing strategy and what it can
do for you
• Don’t let the billing cart lead the pricing
horse. Allow your marketing to be creative
and have fun!
• Consider end-to-end processes and look for
impediments to scalability
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Shameless Plug• Billing Bureau have been doing this for over
15 years; first for telcos and now services
• We live and breathe it
• Experts in convergent billing and automation
and scalability of billing & related processes
• Cloud billing will only become more
complex; we have already done it all
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Thank You!• Any questions?? All clear as mud?
• For more information, contact
• Ben Wortley; Sales and Marketing Director
03 8611 1111 / 0438 236 643; [email protected]
• David Werdiger; Chairman
0412 389 389; [email protected]