Flexing Sugar Platform: Session 5: You Can Bill for That: Enriching the Value of SugarCRM
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The document discusses the evolution of billing systems, particularly focusing on 'Billing 3.0', which emphasizes activity-based billing to enhance revenue streams for businesses. It addresses challenges related to traditional subscription models, such as inefficiencies and customer loss to competitors, and provides an outline of processes for effective activity management. Additionally, it highlights the importance of understanding customer activities in real-time to improve billing accuracy and generate insights for strategic decision-making.
Flexing Sugar Platform: Session 5: You Can Bill for That: Enriching the Value of SugarCRM
- 1. Flexing Sugar Platform You Can Bill For That: Enriching the Value of SugarCRM
- 2. Chris Couch COO, Transverse www.tractbilling.com 4/24/2012 ©2012 SugarCRM Inc. All rights reserved. 2
- 3. SOUND FAMILIAR? MY BUSINESS IS MORE I NEED MORE STABLE THAN SUBSCRIPTIONS REVENUE STREAMS I measure and charge my My revenue stream based on customers based on how they use subscriptions alone have stalled my products and services. and are being cannabalized. I’M LOSING CUSTOMERS TO MY BILLING IS MY COMPETITION TOO COMPLEX Competitors can be more creative Billing based on activities forces me to and move more quickly than I can. use my current system inefficiently. MY BILLING PROCESS IS ERROR PRONE Billing complexities force manual entry, errors and lost revenue. Tweet: #SCON12
- 4. THE BILLINGEVOLUTION Industry Vertical Solutions Subscription Economy Customer Economy $10 Million + $4 Billion + 49% of SMBs cost to implement contracted billings billed by activity Billing 1.0 Billing 2.0 Billing 3.0 • Robust • Cloud-based • Builds on Billing 2.0 • Expensive • Affordable • Designed for activity-based • Not cloud-based • Solution for simple business models • Accessible to large recurring payment problems • See customers’ activities in businesses and management real-time • Accessible to all businesses • Allows for additional revenue streams and business insight Tweet: #SCON12
- 5. BILLING 3.0: RELATIONSHIPS + ACTIVITIES talk Billing 3.0 starts with search emails knowing your customers. downloads clicks tweet blog posts Some call it subscriptions but its more than that. It’s watch videos personal.Build a lasting listen to music read books relationship. status updates shopping dating banking Tweet: #SCON12
- 6. RELATIONSHIP + ACTIVITY (BILLING 3.0) BUSINESS MODEL EXAMPLES Tweet: #SCON12
- 7. SUBSCRIPTIONS AND ACTIVITIES One-Time Fee for Subscription Normal Activities: • Per minute (up to hourly & daily Maximum) • Additional per mile after a threshold Infrequent Activities: • Penalties • Assessments Tweet: #SCON12
- 8. SUBSCRIPTION WITH LEVELS + ACTIVITIES + ENTITLEMENTS Multiple subscription options: Different products / packages Entitlements: • Allowance of articles • Authorized user Tweet: #SCON12
- 9. ACTIVITY-BASED BILLING PROCESSES Tweet: #SCON12
- 10. ELEMENTS OF ACTIVITY-BASED BILLING personalization entitlements Complexity activity management subscriptions Revenue Opportunities Tweet: #SCON12
- 11. ORDER-TO-CASH & ACTIVITY-TO-CASH PROCESSES ANALYTICS Tweet: #SCON12
- 12. ACTIVITY-TO-CASH PROCESS Activity Management - Entitlements - Advice of charge - Access Eligibility - Check Balance Collections - Late Payment, Fees & Penalties Rating & Charging - Suspend Service/Account - Receive Event(s) - Age Account Balances - Void/Reverse Event - Perform Actions - Rate Event - Post G/L Transactions - Update Allowances - G/L Aggregation - Update Pending Charges Payment Processing - Update Pre/PIA Balances - Vouchers - Lock box files - Manual Payments Billing & Invoicing - Auto-payments - Rerate Activity - Update Balances - Mark Events As Invoiced - Retry Handling - Update Roll Over Allowance Tweet: #SCON12
- 13. ACTIVITY-TO-CASH FUNCTION Resource Tracking - Resource Categories - Quarantine Policies - Import/Create Resources Resource Price Plans Usage - Activity Charging Rules Tracking Policy - Reference Tables - Allowances Price - Rate Tables Usage - Roll Over Policy Plans - Complex Usage Rules (xlsx) Policy - Override/Append Customer Care Billing Management Customer Billing - Bill Runs - Manage Balances Care Management - Verification & Approval - Service Credits - Invoice Distribution - Service Inquiry / Change / Renewal - Invoice Templates Payment Management Payment Management - Payment Gateways - Payment Terms - Late Payment Fee Rules - Error & Retry Handling Tweet: #SCON12 V1.1
- 14. ORDER-TO-CASH Marketing/Sales Sign Up • Personal Information • Username / PIN • Driver License Order Validate Credit Card • Credit Card Charge Signup Fee • Pay-on-Purchase • Cash Accept Order Notify warehouse Ship out access card Welcome Notice Aggregate payment information Extract GL aggregation to Accounting System Tweet: #SCON12
- 15. ACTIVITY-TO- CASH Daily Invoice: assemble Reserve the car all charge records Swipe access card Create Invoice Entitlement Verify customer account Charge Credit Card Send Invoice to Drive car from A to B Activity Customer (Drive) Aggregate payment Car sends activity event information Extract GL aggregation Accept activity event to Accounting System Cash Calculate charge for drive Assign charged event to user-by access card Drive Drive Drive 1 2 3 4 5 6 7 Billing Example Invoice 1 Invoice 2 Invoice 3 Tweet: #SCON12
- 16. CHALLENGE: SETTING UP ACTIVITY PRIING AND RULES Tweet: #SCON12 V1.1
- 17. CHALLENGE: CUSTOMER CARE IN BILL CYCLE Unbilled Charges Signup Activities Activity Details Tweet: #SCON12
- 18. CHALLENGE: SHOWING ACTIVITY ON INVOICES Tweet: #SCON12
- 19. FINANCE / ACCOUNTING { ------------------------------------------------------------------------------- -- •Regulatory Compliance •Revenue Recognition •Reporting } INFORMATION TECHNOLOGY { -------------------------------------------------------------------------------- •Real-Time Integration •Guide & Charge •Exception Handling } EXECUTIVES { ------------------------------------------------------------------------------- -- •Shift Strategic Thoughts •Forecasting •Risk & Expectation Management ” } MARKETING { ------------------------------------------------------------------------------- -- •Disruptive / Agent Of Change •Change Consumer Behavior •Encourage Activities } Tweet: #SCON12
- 20. BILLING 3.0: WHY IT MATTERS TO YOU { } FINANCE / ACCOUNTING ------------------------------------------------------------------------------- •Regulatory Compliance •Revenue Recognition •Reporting INFORMATION TECHNOLOGY { --------------------------------------------------------------------------- --- •Real-Time Integration •Guide & Charge •Exception Handling } EXECUTIVES { ------------------------------------------------------------------------------ •Shift Strategic Thoughts •Forecasting •Risk & Expectation Management ” } MARKETING { ------------------------------------------------------------------------------ •Disruptive / Agent Of Change •Change Consumer Behavior •Encourage Activities } Tweet: #SCON12
- 21. BILLING 3.0 METRICS • Average Revenue Per User (ARPU) • Peak Times and Activities During Time • Total Current Rollover • Track Open Liability • Average Duration and Amount of Activity • Total Activities Tweet: #SCON12
- 22. ACTIVITY-BASED BILLING: SHOW ME THE MONEY Increase your bottom line. See your customer’s activities in real-time to create new revenue streams and identify critical market trends. Tweet: #SCON12
- 23. Submit Session Feedback Select the SugarCon Mobile App: 1) Tap on this session 2) Tap on survey 3) Submit your feedback *Prizes for attendees who submit session feedback using the Mobile App 4/24/2012 ©2012 SugarCRM Inc. All rights reserved. 23
- 24. #SCON12 4/24/2012 ©2012 SugarCRM Inc. All rights reserved. 24