Consumption Based Charging
This company has become one of the leading printer manufacturers in the world—and its leaders are committed to staying on top.
The company has long sold its printers the traditional way: as a product, under a one-time fee transaction. However, as competition heats up,
and the risk of printer hardware becoming commoditized grows, company leaders wanted to cultivate a more competitive business model.
The goal: to shift from selling a piece of hardware to selling printing services, and charging based on consumption.
Under the new model, the company will typically install printers free of charge, connecting them to a network that feeds all consumption data to the DigitalRoute Usage Data Platform.
Consumption events (customer behaviour for which the company will charge) could include printed pages, toner usage, printer status, and other events. Consumption events can be bound to specific individuals or departments,
allowing the company’s clients to allocate internal costs for printing services in an accurate, transparent way. The printers also use the connectivity to report on performance and health status.
With these insights, the company can now implement predictive maintenance that results in a higher grade of service to corporate clients.
With valuable insights on consumption and predictive maintenance, the company can now grow its revenue margins and keep its customers happier.
With the new consumption-based business model, the company can lower the capital investment threshold for its products, since printers are installed at no cost and customers only pay for consumption. Additionally, the Company can now use its deep visibility into customer behavior to develop and sell new services.
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