For those purchasing or managing existing billing systems, there are tremendous opportunities to convert marginally profitable customers into highly profitable subscribers that generate recurring revenue streams over time.
On Wednesday September 28th at 12EST, Transverse and Yankee Group (News - Alert) experts will come together for a webinar entitled “How Cloud, SaaS and other Providers Can Profit from Subscription Billing.” The discussion will reveal how the powerful combination of billing and the Internet can deepen brand loyalty and expand the number of touch points businesses have with customers. “We want to show how companies can build sustainable business models that better respond and cater to the dynamic nature of people – their preferences, lifestyles, locations and personas – all of which are in a constant state of flux,” said Transverse COO Chris Couch.
Because the internet has fundamentally changed the way people consume information, businesses have to move beyond one-off transactions with customers toward an always-on world where products and services are tailored to the actual usage and behaviors of people. From a customer perspective, subscriptions bring more value by enabling more “bang for your buck,” such as getting an archive of movies for the price of one movie or getting an entire library of books at your fingerprints for the price of one book.
From a business perspective, subscriptions mean lowering transactional costs and longer-lasting relationships with customers.
To succeed, companies need to move through different phases of a Subscription Maturity Model, from simple and impersonal recurring billing toward the types of subscriptions that offer various combinations of limits and usage as well as individualization derived from real-time feedback about how customers are consuming and paying for products and services.
To get there, you need certain components – whether in-house or in a hosted or SaaS (News - Alert) environment, such as real-time rating, charging, analytics and the capability to integrate with enterprise applications such as fulfillment, order management and trouble-ticketing.
While many billing companies use words like “robust” or “real-time” or “integration,” most really wrap fancy Web front ends around old technologies. “Businesses really need to consider where there billing solutions’ origins lie and then make decisions based on not only where they want to be today, but where they need to go tomorrow to surpass their competitors,” said Couch.
Couch points to Transverse as a case-in-point, as a company that grew out of the telecom industry – the most sophisticated of any industry in terms of subscription maturity. “Our principals come from the world’s most established billing vendors, carriers, systems integrators, such as CSG Systems (News - Alert), LHS, AMS, BusinessEdge, AT&T and Sprint,” said Couch, noting that Transverse’s roots in the telecom billing space translate into the knowledge necessary to help customers in many industries. ”We help everyone from SaaS and Cloud service providers, to attorneys, media companies and services industries move into the subscription model to create recurring revenues and deepen loyalty with their SaaS-based billing platform, which is fast-becoming a strategic asset.”
For billing to truly fuel an evolution to personalized services, companies need to seek out “Dynamic Revenue Management,” the ability to add and manage consumption or usage-based price levers to a product mix in order to generate maximize lifetime value of the customer and build new revenue streams.
By monitoring the customer’s consumption habits, a Dynamic Revenue Management platform can help business owners determine what enhancements they should be offering in addition to core services. Businesses can then choose to charge an additional fee for those services, resulting in increased service satisfaction, brand loyalty and overall spending from customers that opt in.
“We’ve taken what we consider to be a state-of-the-art carrier-grade billing system and moved it into the cloud to make it available to companies of all sizes at a price you would expect to pay for on-demand software. We’re really the only company currently doing that,” said Couch.
Subscription billing is a baseline requirement for customers that want information and entertainment in an on-demand fashion and for those companies looking to move up the Subscription Maturity Model and be able to personalize their customer relationships, TRACT allows them to easily add the ability to rate/meter usage, offer coupon management (similar to Groupon or LivingSocial (News - Alert)), carrier-grade billing and analytics in an on-demand model.
For more information on the webinar and to register, interested parties can click: here.
Chris DiMarco is a Managing Editor for TMCnet. He holds a master's degree in journalism from Quinnipiac University. Prior to joining TMC Chris worked with e-commerce provider Suresource as a contact center representative and development analyst. To read more of his articles, please visit his columnist page. Follow him on Twitter (News - Alert) @cpdimarco.
Edited by Chris DiMarco