With proper monetization strategies in place, innovative enterprise technology companies find increased customer adoption and satisfaction, given customers get better value by paying only for those services they use and because they are not locked in.
AUSTIN, Texas (PRWEB) December 11, 2018
Usage-based pricing is lowering barriers to consumption and generating data for deeper insight into customers according to a new commissioned Opportunity Snapshot, created by Forrester Consulting. The new study, “Capitalize On Your Digital Transformation With Usage-Based Models,” was commissioned by Gotransverse (http://www.gotransverse.com), a leading provider of enterprise Quote-to-Cash solutions, and reveals that fair billing (i.e., pay per use) is powering a new type of business model based on stronger customer relationship building.
The Opportunity Snapshot study shows that consumption-based pricing requires a different type of customer interaction than a one-time purchase. More companies are looking to improve customer interaction and increase engagement by monetizing digital products and services with usage-based billing. Of 92 directors and decision-makers surveyed, 39 percent said they intended to adopt usage-based pricing within the year, and 33 percent said they planned to add usage pricing within two years.
What’s driving demand for consumption billing is a combination of interdependent factors. Consumers are using more connectivity devices and are therefore more willing to experiment with new business models, especially since integration provide seamless access to data and services. Consumers also are more savvy, researching and sharing brand information to get the best experience. Consumption billing reduces risk in experimenting with new products and services while presenting new monetization opportunities to vendors.
Among the companies surveyed that already offer usage-based pricing, 24 percent report they are very satisfied and 44 report they are satisfied with the outcome. Adopters report significant benefits from usage-based billing, including lower barriers to adoption (71 percent), expanded product offerings (63 percent) and increased revenue (61 percent). Also, adopting a usage-based pricing model tells companies more about their customers. Fifty-three percent report gaining insight for better customer relationship management, and 51 percent say insight from usage-based billing data improves strategic decision-making.
“More organizations are discovering that monetizing products and services based on usage has significant business advantages,” said James Messer, President, and CEO of Gotransverse. “It allows for monetizing specific capabilities and services and modifying pricing as needed, rather than relying on annual price list changes. With proper monetization strategies in place, innovative enterprise technology companies find increased customer adoption and satisfaction, given customers get better value by paying only for those services they use and because they are not locked in. Having a modular billing platform that is agile, automated, supports analytics, and that can adapt to changing customer requirements is essential to digital transformation for tomorrow’s businesses.”
The study also shows that 68 percent of companies surveyed find it important to have a software infrastructure that is configurable and flexible, and that can accommodate lessons learned when migrating to usage-based pricing.
Gotransverse supports usage-based business models and complex price configuration, quote and billing; billing metrics; customer reports and analytics; and revenue recognition. The intelligent billing platform is ideally suited for mid-sized to large enterprise subscription operations with complex revenue models, such as per-use or consumption billing models, as well as multi-attribute rating rules.
For more information and to access a copy of “Capitalize On Your Digital Transformation With Usage-Based Models,” visit http://www.gotransverse.com.
Gotransverse powers intelligent billing for the enterprise. Offering a full-stack subscription and usage billing platform designed for monetization, Gotransverse addresses the challenges businesses face when they rapidly deploy new products and services with sophisticated subscription and consumption-based pricing models at global scale. Gotransverse customers can accelerate top-line revenue growth and time-to-market, as well as gain visibility into revenue streams and drive operational savings