Implementing Agile Monetization with a Usage-Based Solution
Fixed and simple subscription pricing models are on the decline, as forward-looking enterprises adopt more sophisticated methodologies designed to maximize customer lifetime value. It is expected that by 2022, Agile Billing will displace over 15% of incumbent billing solutions, according to MGI Research.
Making the switch means implementing an agile monetization platform that can handle more complicated rules, and deliver the capabilities needed to track(and report on) usage in near real time.Fortunately, with billing moving to the cloud, it’s not as difficult as it may seem to adopt, implement, and launch an intelligent billing solution designed to meet your changing business needs.
Follow these 21 steps, broken into three manageable phases, 1- Strategy, 2- Implementation, and 3 - Rollout, to see what’s involved.
STRATEGY
Select the right team and partner, including an executive sponsor and strong, strategic PM.
Define your usage-based billing model, based on time, volume, demand, allowance, or other.
Choose an agile billing solution that can support a wide array of configurations.
Establish a flexible, adaptive product catalog that scales without creating SKU sprawl.
Determine a method of rating usage data in near real time with a rules-based engine.
Automate your revenue recognition to ensure accurate, reliable and timely reporting.
Design the integration for native invoicing within your platform for streamlined billing and chargebacks.
IMPLEMENTATION
Gather product requirements, fine-tuning solution design, architecture, and project scope.
Develop an iterative timeline for launch that quickly delivers value, while minimizing risk.
Take a phased approach, tackling required elements and scenarios first, value-adds next.
Create a detailed project plan to track tasks and progress, adapting as needed.
Build in end-to-end integration testing to check for configuration flaws across systems.
Set up regular reporting intervals to analyze and act on valuable consumption data.
Recognize milestones and achievements, proving value and creating internal investment.
ROLLOUT
15. Conduct User Acceptance Testing (UAT) to assess internal readiness across business units.
16. Develop and Stick to "Go/No Go" Criteria to ensure functionality with your new solution.
17. Shore up your support functions to handle incoming customer inquiries or issues.
18. Update your website and marketing materials to support your new pricing model.
19. Enable your sales teams with tools and training to reduce churn and increase lifetime value.
20. Prepare your executive leadership and shareholders for shifts in revenue recognition.
21. Orchestrate a series of customer communications explaining the changes and benefits.
Of course, the most important step to implementing a smarter billing platform is having the right vision inplace. The right strategic partner can help you define the goals, requirements, and measures of success foryour new hybrid business model and billing platform. Gotransverse was cited as Top Ranked in Billing Management in The ForresterWaveTM: SaaS Billing Solutions, Q4 2019, as well as a best fit for companies with usage-based billing and rating requirements with acknowledgement from clients for performance, scalability, and API quality. Contact Gotransverse today to explore what’s next.