A robust billing capability is essential for businesses aiming to automate manual processes, provide flexibility for product teams, ensure accuracy and compliance for finance and operational teams, and empower their business to compete with new and disruptive models. Effective billing prevents revenue leakage, enforces contract terms at scale, and enables the monetization of physical, digital, or hybrid products in a myriad of ways.
Billing is integral to customer experience, product development, go-to-market strategies, and operational execution. Monetization is the core mechanism of every business. Let’s explore the concept of usage-based monetization and how social, environmental, and economic factors are converging to create unprecedented volatility and opportunity. Welcome to The Usage Economy.
1. You’re Late
Monitoring the competition and staying updated on public and business perceptions is crucial. Companies that fail to adapt to new monetization ideals risk falling behind. The decline of traditional cable TV in favor of more flexible, subscription-based streaming services exemplifies the need for granular, usage-based pricing.
Empowering customers with transparent, value-for-money experiences enhances retention and maximizes lifetime value. Adapting quickly to new monetization models, like Uber and Airbnb did, ensures businesses remain competitive and capable of responding to industry disruptions.
2. The Prolific Proliferation
Understanding the exponential growth of connected devices and their impact on business models is critical. With projections of nearly 40 billion connected devices by 2025, businesses must prepare to monetize this vast network.
Maximizing the utilization of assets—whether physical, digital, or human—can drive significant revenue. This requires automation and granular monetization capabilities, including dynamic pricing, automated contract enforcement, and usage-based models.
3. The Economics of Apocalypse
The recent years have highlighted the need for businesses to adapt to economic disruptions, social changes, and technological advancements. Companies must prepare for new economic realities, including the rise of cryptocurrencies and changing consumer behaviors.
Transparency, compliance, and flexibility in billing and monetization will be essential. Businesses must also align their values and practices with the evolving moral and ethical standards of their customers.
4. They Can Sell Water
Value monetization is about more than just cost—it’s about the perceived value to the customer. Digital products with low marginal costs require innovative pricing and monetization strategies.
Understanding and capturing the value delivered to customers at each interaction is vital. This involves designing products and services with customer experience at the forefront, ensuring that billing and invoicing are opportunities to enhance customer satisfaction and drive revenue.
5. The Interconnectedness of All Things
As connected devices and automation proliferate, businesses will need to integrate seamlessly into a network of networks. This approach allows for greater flexibility and innovation, enabling companies to deliver unique value propositions.
Examples like GameStop partnering with DoorDash to leverage their logistics network demonstrate the potential of interconnected business models. Companies must be able to integrate new capabilities quickly and efficiently to stay competitive.
Thrive in The Usage Economy with LogiSense
LogiSense provides the tools you need to thrive in The Usage Economy. With LogiSense, you can offer flexible pricing, gain real-time insights, automate billing processes, and seamlessly integrate with other systems, positioning your business for sustained growth and success.
Contact us now for more information on how to stay ahead of market trends and ensure your products meet evolving customer expectations.
Adam Howatson /
Adam Howatson joined LogiSense as President and Chief Executive Officer in January of 2019, where he also serves as a member of the Board and Board Secretary. Before joining LogiSense, Adam led the go to market and partner functions of Canada’s largest software company, OpenText, as Chief Marketing Officer and SVP.
