SMART BILLING

Agenda

• Pricing vs billing

• Telco pricing -> Cloud

• Pricing strategies

• Smart vs Stupid Billing

• Key learnings

Pricing Versus Billing

• Pricing & Billing are two sides of the same

coin – the coin is your revenue!

• Pricing is a marketing function – how

much to charge for a service

• Billing is an operational function – how to

extract that charge from your customers

• Which should drive which? Who is in

charge?

Telco Pricing Models• Infrastructure owners vs resellers

• Gross margin

• Upfront investment

• Simplistic and “follow the leader”

• Traditional strategy: confuse the customer

• Recent changes will have a limited effect

From Telco to Cloud• Telcos already multi-dimensional and

convergent

• Essential for customer stickiness

• Telco services moving to the cloud, e.g. IP

Telephony

• Next step: add additional cloud services

• Next generation of telcos: cloud aggregators,

and NBN RSP aggregators?

Jan Feb Mar Jun Jul Aug0

10

20

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40

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RevenueCost

Why think about pricing?

Value-based Pricing Models• Think like a customer

• What is the value they are receiving for the

price they pay? Do they correlate?

• What is the opportunity cost? TCO?

• Are you leaving money on the table?

• Using metrics of customer (perceived) value as

a pricing input

Pricing & Billing

Billing

Pric

ing

Smar

tSt

upid

Stupid Smart

Cloud Billing Considerations• Billing is complex (in other breaking news,

gravity causes objects to fall to the earth).

• Billing needs to be driven by price strategy

not the other way around.

• Scalability is everything

• Flexibility and adaptability; can it keep up

with the speed of market changes?

• Is billing a nightmare? A distraction? How

‘core’ is it?

The wrap• Think about pricing strategy and what it can do

for you

• Don’t let the billing cart lead the pricing

horse.

• Allow your marketing to be creative and have

fun! Let them be a differentiator and innovator

• Consider end-to-end processes and look for

impediments to scalability

Shameless Plug• Billing Bureau have been doing this for over

15 years; started in telco and now expanded

to subscription and services

• We live and breathe it

• Experts in convergent billing and automation

and scalability of billing & related processes

• Cloud billing will only become more

complex; we have already done it all

Thank You!• Any questions?? All clear as mud?

• For more information, contact

• Ben Wortley; Sales and Marketing Director

03 8611 1111 / 0438 236 643; benw@billing.com.au

• David Werdiger; Chairman

0412 389 389; david@billing.com.au