Or, more specifically, what your customer wishes to make of it. The world of digital transformation, fueled by technological advancements, has forever expanded the array of options available to your customers and upped the ante on their service expectations.
Among those options, usage-based billing, or metered billing, has seen a rapid rise in, well, usage as a form of billing in which customers are charged solely based on the use of a product or service. With the rise of the cloud and software as a service (SaaS) solutions, and market segments such as data storage and streaming services jumping in to adopt, the usage billing model will continue to grow in popularity.
However, for SaaS businesses, every organization is different, orchestrated by a unique framework that functions differently from one another with individualized pricing methods to complement its process. Usage billing will never fit into a ‘one size fits all’ approach.
Here are a few everyday examples:
The bill you pay for water usage at your home is based on usage data displayed and tracked onyour water meter, triggered witheach turn of the faucet. The ability to track billing via usage tracking requires access to metering tools just now becoming more familiarwith SaaS companies
Whether hopping in a cab or using a rideshare app, car-based travel payment is by distance and duration of the trip.
Your telecom payment includes a monthly bill for their service, along with a variable payment based on the data used in association with your particular plan limitations.
Eliminate revenue leakage and prevent churn with big data-backed insights and analysis.
A billing system based on usage requires not only a consistent flow of revenue, but for an organization to evaluate the value of its ongoing resources. Making the proper proactive assumptions and anticipations regarding customer adjustments are critical billing-related decisions. What is your company’s response when a customer decides to change their billing cycle before the end of the month? In order to track usage data and compile the appropriate bill for it, companies have a lot to consider, including:
• Customer communication
Just some of the advantages for SaaS companies when it comes to consumption‑based billing include:
Ability to handle usage collection and billing at different frequencies through a configurable system adaptable to all variety of collection needs, including more than once in the same financial period.
Capability to collect usage data against individual contract lines by usage information import for proper usage pricing calculation.
Flexible in pricing usage according to specific customer needs, including:
Flexibility to automate adjustments in order to properly import usage data.
Ease of access to manage visibility and reprocessing of usage data exceptions, keeping pace with the potential for thousands of customer actions on a daily basis.
Allow RecVue’s usage billing functionality help your company better understand the ongoing value of your resources. This wide lens view will provide data insights for better decision-making toward potential new business opportunities and pricing capabilities going forward.
The right billing solution is typically integrated with a legacy ERP system incapable of handling today’s complicated billing. And this integration is more commonly taking place amid a company’s growing internal ecosystem, which can prove daunting. That’s why RecVue was designed as a unified platform solution capable of handling not just your billing complexities, but your revenue and partner payment needs as well.
The company behind one of the world’s largest electronic payments engines, ACI Worldwide, processes an eye-popping $14 trillion in daily payments and securities, and 250 million monthly transactions.
In doing so, the company requires complex billing scenarios, frequently modified contracts and the processing of high volumes of usage data. In other words, the new-world challenges landing on the doorstep of almost every global enterprise today.
By implementing RecVue’s order-to-cash platform, ACI was able to combine 5 separate billing systems across 4 acquired businesses. Consolidating 80+ distinct usage platforms, the company sends one feed into RecVue for a streamlined billing engine.
In the process, ACI saw a 73% reduction in manual processing by automating complex usage-based calculations and reduced reliance on spreadsheets for usage collection and billing verification.