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Smart billing   aus cloud melb 2012-07
 Pricing & billing
 Pricing models & strategies
 Billing processes
 Case studies
 Wrap up
 Telco & subscription billing & pricingguru
 Entrepreneur; ADHD opportunity juggler
 Blogger; writer; public speaker
 Founder & director: Billing Bureau, TBG, KISS Mobile
 Several not-for-profit directorships
 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?
 Why bother?
 Freemium
 Subscription pricing
 Value-based pricing
0
10
20
30
40
50
60
70
Jan Feb Mar Jun Jul Aug
Revenue
Cost
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?
Subscription 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 doesnt 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 doesnt fit all
 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
 A sound pricing strategy can help you:
 Differentiate
 Extract more value
 Manage customer behaviour
 Attract different market segments
Billing
Pricing
SmartStupid
Stupid Smart
 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
 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?
Online 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.
Property 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.
Mobile 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
 Think about pricing strategy and what it can
do for you
 Dont 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
 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
 Any questions?? All clear as mud?
 For more information, contact
 Ben Wortley; Sales and Marketing Director
03 8611 1111 / 0438 236 643; benw@billing.com.au
 David Werdiger; Chairman
0412 389 389; david@billing.com.au
Ad

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Smart billing aus cloud melb 2012-07

  • 2. Pricing & billing Pricing models & strategies Billing processes Case studies Wrap up
  • 3. Telco & subscription billing & pricingguru Entrepreneur; ADHD opportunity juggler Blogger; writer; public speaker Founder & director: Billing Bureau, TBG, KISS Mobile Several not-for-profit directorships
  • 4. 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?
  • 5. Why bother? Freemium Subscription pricing Value-based pricing
  • 6. 0 10 20 30 40 50 60 70 Jan Feb Mar Jun Jul Aug Revenue Cost
  • 7. 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?
  • 8. Subscription 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 doesnt 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 doesnt fit all
  • 9. 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
  • 10. A sound pricing strategy can help you: Differentiate Extract more value Manage customer behaviour Attract different market segments
  • 12. 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
  • 13. 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?
  • 14. Online 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.
  • 15. Property 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.
  • 16. Mobile 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
  • 17. Think about pricing strategy and what it can do for you Dont 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
  • 18. 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
  • 19. Any questions?? All clear as mud? For more information, contact Ben Wortley; Sales and Marketing Director 03 8611 1111 / 0438 236 643; benw@billing.com.au David Werdiger; Chairman 0412 389 389; david@billing.com.au