Date post: | 24-Jun-2015 |
Category: |
Business |
Upload: | david-werdiger |
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SMART BILLING
Agenda
• Pricing vs billing
• Telco pricing -> Cloud
• Pricing strategies
• Smart vs Stupid Billing
• Key learnings
Pricing Versus Billing
• Pricing & Billing are two sides of the same
coin – the coin is your revenue!
• Pricing is a marketing function – how
much to charge for a service
• Billing is an operational function – how to
extract that charge from your customers
• Which should drive which? Who is in
charge?
Telco Pricing Models• Infrastructure owners vs resellers
• Gross margin
• Upfront investment
• Simplistic and “follow the leader”
• Traditional strategy: confuse the customer
• Recent changes will have a limited effect
From Telco to Cloud• Telcos already multi-dimensional and
convergent
• Essential for customer stickiness
• Telco services moving to the cloud, e.g. IP
Telephony
• Next step: add additional cloud services
• Next generation of telcos: cloud aggregators,
and NBN RSP aggregators?
Jan Feb Mar Jun Jul Aug0
10
20
30
40
50
60
70
RevenueCost
Why think about pricing?
Value-based Pricing Models• Think like a customer
• What is the value they are receiving for the
price they pay? Do they correlate?
• What is the opportunity cost? TCO?
• Are you leaving money on the table?
• Using metrics of customer (perceived) value as
a pricing input
Pricing & Billing
Billing
Pric
ing
Smar
tSt
upid
Stupid Smart
Cloud Billing Considerations• Billing is complex (in other breaking news,
gravity causes objects to fall to the earth).
• Billing needs to be driven by price strategy
not the other way around.
• Scalability is everything
• Flexibility and adaptability; can it keep up
with the speed of market changes?
• Is billing a nightmare? A distraction? How
‘core’ is it?
The wrap• Think about pricing strategy and what it can do
for you
• Don’t let the billing cart lead the pricing
horse.
• Allow your marketing to be creative and have
fun! Let them be a differentiator and innovator
• Consider end-to-end processes and look for
impediments to scalability
Shameless Plug• Billing Bureau have been doing this for over
15 years; started in telco and now expanded
to subscription and services
• We live and breathe it
• Experts in convergent billing and automation
and scalability of billing & related processes
• Cloud billing will only become more
complex; we have already done it all
Thank You!• Any questions?? All clear as mud?
• For more information, contact
• Ben Wortley; Sales and Marketing Director
03 8611 1111 / 0438 236 643; [email protected]
• David Werdiger; Chairman
0412 389 389; [email protected]