How Does A Typical Metered Billing Application Work?
A lot of buzz is being created around current and trending billing options like metered or usage-based. Customers are preferring these options over subscription-based billing all around the world. However, businesses still do not have complete information regarding what metered billing or usage-based billing is all about.
If you own a business and want to provide better pricing and billing facilities to your customers, then here is a write-up that you must read. It will give you all the relevant information on what metered billing is and how it works. Overall, it will allow you to make sound choices regarding your future pricing and billing strategies.
Explaining usage-based billing
Imagine you want to charge your clients a granular amount depending on their consumption of your offered services and products during a pre-fixed billing cycle. In such cases, would subscription billing work? The answer is NO. This is where the metered billing platform steps into the picture to give you additional alternatives, apart from traditional invoicing systems.
It allows you to charge your customers the amount in sync with their utilization. For this reason, most customers prefer usage-based billing for their requirements. Whether it is for internet, telephone, or utility expenses, it is all usually based on usage-based billing. Most SaaS companies have also adopted this billing method to serve customers better.
Significant stages of a metered billing software
1. Usage-based pricing
A typical billing platform will give you multiple options like subscription, metered, and combination models. The first thing that you need to do is choose usage-based pricing as your preferred billing option. It allows the software to understand the kind of billing model you want to implement in your business or a particular product.
2. Creating an offer
The next step is of creating personalized or custom offers. A lot of companies these days are offering deals and discounts to increase their sales. These offers also need to be reflected in the invoice that you sent out to your clients. Therefore, metered billing software allows you to create deals using the same application.
3. Billing the client
During the next phase of your usage-based billing software, all you need to do is send out the invoices to the respective client. Since it is a recurring process, you can also automate the same using your usage-based billing application. It will allow you to save a lot of time in the long run by not indulging in repetitive tasks.
4. Reporting usage
Lastly, a segment of the metered billing software is dedicated to reporting usage of each client. That allows you to understand customers’ preferences and obtain essential data based on their utilization of your products or services. This information can later be used for creating effective sales strategies by your business.
Highlights of Tridens Monetization cloud billing platform
1. Revenue management
Revenue management is a task that can now be simplified and automated, easily using metered billing software. For instance, Tridens Monetization allows you to indulge in full-scale revenue management without any hassle. You can pull out records related to your business’s revenue and analyze them as well with the help of this application.
2. Business model support
Supporting business models is also something that can be taken care of when you use the Tridens Monetization cloud building platform. Whether you have a business model that is based on B2B, B2C, or B2B2C, it is all supported by this metered billing software. Therefore, you will never have to change your billing platform just because of your updated business model.
3. Customer management
If you feel you are spending a lot on customer management, then you can control your cost with the help of Tridens Monetization. It helps you manage your customers better and understand their utilization data, so that you can offer them additional facilities. Such information can also help with upselling customers.
4. Real-time usage-based billing
Using-based billing is the most effective when it is in real-time. Whether it is collecting data regarding your customers’ usage or transmitting it, it can all be done in real-time with the help of Tridens Monetization. That makes it a multidimensional usage-based billing software.
Since this article defines the process of how a metered billing software works in simple words, we are sure you must have understood it by now. So, you can start thinking about adopting it for your own business.