Transparent Invoicing & New Business Models
The company had long relied on traditional product and service transactions—selling security equipment via a one-time transaction, with flat fees for associated services. Company leaders, however, recognized that their customers increasingly want to be billed based on their actual usage.
Company leaders wanted to shift to a Consumption-Based business model, using IoT Billing to track and bill for customer behavior. The biggest barrier to succeeding in this transition: the company’s mix of legacy and modern security equipment.
The company needed to collect and unify usage data from a wide range of devices and bind these sessions to one billable item per user account. Additionally,
they needed to set up a centralized billing and accounting system spanning previously siloed legacy systems, as well as new IoT devices. Ultimately, they wanted to unify the pricing model for both legacy and new equipment.
Today, the DigitalRoute Usage Data Platform collects usage data from all types of the company’s surveillance systems (legacy and modern) and merges the streams of usage data into a single billable session for the Billing System. The Usage Data Platform binds the usage data to time, device, company or household.
The sessions begin with device activation, and can include duration of use, as well as various activities reported by the devices. Under this new, consolidated model, the company can now set up centralized billing and accounting across previously siloed systems and devices, and unify their pricing models.
The company also now has more flexibility and transparency in invoicing, as the Usage Data Platform can collect data from a large number of devices in multiple formats in real-time as well as batch.
Crucially for this global company, the system can collect data at near-telco-scale volumes, as well as collect events from hundreds of different sources and devices including access control, home automation, surveillance and more.
By shifting to consumption-based billing, the company can now offer customers more competitive and economically flexible solutions. Increased transparency in invoicing also enhances customer loyalty and retention.
With detailed visibility into customers’ consumption behavior, the company can now analyze customer behavior and preferences in fine-grained ways.
They can use those insights to quickly launch and develop new business models.
By rolling out new offers that they know will interest customers, the company can continually expand its business.