For UCaaS providers, monetizing offerings is a complex undertaking. Packaging and pricing the various service bundles is not only challenging but also time-consuming. When monetization decisions are based on instincts rather than on facts, the end result is lost customers, lost revenue, and lost name in the market.
Addressing customer demands while maximizing revenue requires UCaaS providers to carefully understand the monetization life cycle. It is only when there is clarity on the monetization life cycle that UCaaS providers can adapt their offering to create flexible pricing models that meet customers’ rising expectations. The monetization life cycle is defined by certain parameters that enable providers to integrate their services in a multi-vendor, multiple-technology landscape seamlessly. These parameters drive reduced time-to-market for new offerings as well as help monetize next-generation services – faster and more effectively.
Listed below are the 5 critical pillars of the monetization life cycle for UCaaS providers:
Order and Service Management:
Inventory, orchestration and order fulfillment are critical aspects of the monetization life cycle. They are important for coordinating order fulfillment functions and ensuring timely and successful completion of customer orders. Receiving and recognizing customer orders and coordinating all the actions needed to fulfill the order is important to manage and fulfill orders in real-time. It is through efficient order and service management that you can seamlessly perform all actions across provisioning, shipping, inventory, billing, and other fulfillment systems. You can efficiently monitor and manage orders as they get fulfilled, and automate tasks for quick closure.
As the popularity of subscription-based business grows, UCaaS providers have to drive continuous efforts in serving a recurring base of customers. Subscription Management is a critical component of the monetization life cycle. A robust subscription management software allows UCaaS providers to view all details related to customers, their subscriptions, revenue and more, enabling them to reap maximum benefits and generate better revenue from the market. From collecting and managing details related to transactions, pricing personalization, flexible consumption, value-based pricing, and elastic subscription – subscription management helps take care of all these activities through one integrated hub.
Billing and Revenue Management:
For any monetization solution, billing and revenue management offers a unique opportunity to better connect with customers and ensure a steady flow of recurring revenue. It allows UCaaS providers to take complete control over the billing cycle and seamlessly carry out tasks across charging and taxation, billing and invoicing, receivables as well as collections management. Through personalized, on-time and precise billing methods, UCaaS providers can meet the distinct needs of customers, and support them across the entire monetization life cycle. UCaaS providers can choose when customers are billed, define custom billing cycles, and offer a plethora of billing modes to limit delays and curb revenue leakage.
Finance automation enables UCaaS providers to automate key monetization tasks and keep pace with the evolving changes in the market. Using finance automation, UCaaS providers can make changes on-the-go, continuously track and optimize service offering, and extend their life cycle by updating and improving them over time. Finance automation also helps in recognizing revenue sources across a range of business models and help with compliance across accounting and GL for better safety and access.
Managing customers across myriad channels is a Herculean task for any UCaaS provider. However, effective channel management strategies can enable providers to strengthen relationships with channel partners and maximize revenue across the monetization life cycle. Providers can resell products to partners using a specific price range, define incentive models, empower them with self-care portals and implement automated solutions for billing, invoicing and end of cycle-settlement. Using effective channel management, UCaaS providers can enable partners to start business instantly, create deals that are specific to each partner, and allow them to select products they can sell from the catalog with a product rate cards tailored to each partner.
Drive Higher Revenue:
From Netflix to Spotify, as the demand for subscription-based business grows, organizations that stand the test of time and truly succeed are those that are built with a solid foundation around these five critical pillars. Embracing modern technology, having a better understanding of the monetization life cycle, and adopting robust subscription management software can allow UCaaS providers to overcome existing limitations and meet the growing needs of customers.
Monetization solutions, with capabilities spanning across order and service management, subscription management, billing and revenue management, finance automation and channel management can enable UCaaS providers to build innovative business models, strengthen customer and partner relationships and drive higher revenue for a competitive edge.