May 15, 2023

How to design a Pay-Per-Use solution?

Customer experience

Can your customer's problem be solved in a better way with pay-per-use? Yes! But where do you start? 

Step 1

Determine what assets to offer on a pay per use model. Then, analyse the specificities of these assets: What is their average life span? What's their second-hand market?

Step 2

Build a pricing model based on usage behaviours and decide how to charge your customers: via a combination of fixed and usage-based fees or 100% variable fees (which means no use no pay).

Step 3 

Take into account the different risks including: performance, insolvency, cash, obsolescence, balance sheet and revenue recognition risks. And of course, understand how to mitigate these risks.

Step 4

Track usage to accurately charge your customers. How to collect, analyse and act on this data? And finally think about how you are going to collect payments? 

We are deploying such models for several B2B organisations, contact us to learn from our best practices. 

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