OnDemand WTP Pricing Research

Putting your stamp on the usage-based pricing economy | accelerate into digital

Usage-based pricing is not a theoretical future. We experience it on a daily basis every time we make a phone call or fill up our cars with fuel. The question is: How to find a competitive edge by replacing traditional flat-rate services with usage-based pricing in a market consisting of infinite and difficult to measure variables? Part of the answer lies in astute application of new concepts, such as the Internet of Things (IoT).

For several decades, pricing for services has been gradually moving away from the one-size-fits-all, cookie cutter approach entrenched in business by the industrial era. Mass production did indeed reduce costs, enabling people en masse to afford products and services that were formerly available only to the financial elite. Though mass produced, the products had limited variability.

Usage-based pricing brings an entire paradigm shift in the way goods and services are priced. It massively increases variability while reducing costs and increasing affordability still further.

The writing is on the wall
Whatever the industry, the barrier to entry for providing usage-based pricing is lower than ever due to recent technology trends. They provide the ability to track, capture, and analyse customer behaviour in real time. More to the point, they enable on-the-fly adjustment of pricing, products, and services as customers adapt their behaviour to provide themselves with the experience and lifestyle outcomes they want.

This is not the future. This is now. Customers are starting to expect this type of commercial model. And, because everyone will have the same operational capabilities, differentiating your business will come down to bringing new behaviour-focused products and services to market first. That will mean collaborating within an ecosystem of partners in which everyone’s innovation feeds everyone else’s market.

The behavioural bottom line is speed and agility.

So, don’t waste time reinventing a wheel that is already spinning very productively. Find a technology partner that can help you both align your business strategy with customer behaviour and provide you with the enabling tools.

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Putting your stamp on the usage-based pricing economy.

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