Generating New Revenues: The Rise of Activity-Based Billing Models
The economic slowdown and sluggish rebound in the U.S. is forcing many businesses to reevaluate their business plans. At the center of that review is a hard look at the health of the business model, and whether improvement is needed to take advantage of changing customer dynamics and business pressures. A growing number of small- to medium-sized businesses (SMBs) are choosing to evolve to an activity-based billing model to reduce customer churn and increase revenues.
Activity-based billing (sometimes referred to as activity-‐based pricing) is where the business charges a fee based on how customers use a product or service (activities), as opposed to a flat subscription price. Often these activities can be bundled or dynamically combined with other offers, which can increase revenue and even customer satisfaction.
iGR’s white paper, Generating New Revenues: The Rise of Activity-‐Based Billing Models, provides details on activity-based billing models currently in use, as well as the plans of SMBs to implement these new billing structures.