08 Oct
In today’s whirlwind of a digital economy, the business world is witnessing a tectonic shift towards subscription-based models. The shift is motivated by the need for recurring revenue, improved customer retention, and customized offerings. As a result, many companies are embracing advanced billing solutions such as SAP Billing and Revenue Innovation Management (SAP BRIM) to effectively handle complex processes, boost productivity, and enhance the customer experience.
SAP BRIM provides a wide range of tools that automate billing, streamline financial processes, and ensure accurate revenue recognition. In this blog, we highlight the top five use cases of SAP BRIM for subscription-based businesses, shedding light on the industries that stand to gain the most from advanced solution.
1. Telecommunications: Managing High-Volume Subscriptions
Industry Overview
The telecommunications sector has been at the forefront in the adoption of subscription-based models, providing a diverse array of services like mobile data, broadband, and streaming services. Managing these offerings, which involve millions of subscribers and intricate pricing systems, requires a highly flexible and scalable billing system.
Use Case
SAP BRIM’s capability to handle high transaction volumes accurately and efficiently is advantageous for telecommunications companies. This solution automates the entire lifecycle of subscription services, encompassing order management, billing, and invoicing. It supports dynamic pricing models, including usage-based billing, prepaid and postpaid plans, and bundled services, enabling companies to customize offerings to align with customer demand.
SAP BRIM seamlessly integrates with customer management systems, allowing companies to improve the customer experience through in-depth insights into subscription usage, billing history, and service upgrades. This leads to increased customer satisfaction and decreased churn.
Key Benefits
- High-volume transaction processing
- Flexibility in billing models (prepaid, postpaid, bundled services)
- Seamless integration with customer management systems
- Improved customer satisfaction and retention
Reference to Realtime case study – https://www.acuitilabs.com/sap-brim-case-study-telecom-company/
2. Media and Entertainment: Flexible Pricing and Bundling
Industry Overview
The subscription-based offerings in the media and entertainment industry, particularly streaming services, have experienced significant growth. Companies in this space rely on subscription models to ensure consistent revenue while tailoring prices to suit different customer needs, whether it’s for video streaming, music platforms, or digital news subscriptions.
Use Case
SAP BRIM provides businesses in this sector with the tools to simplify the management of subscription plans, including options for flexible billing such as tiered pricing, pay-per-view, or usage-based pricing. For instance, a streaming service can offer a range of subscription tiers based on content access, quality, or the number of devices. With SAP BRIM, media companies can swiftly adapt pricing models in line with market trends or subscriber preferences without causing disruptions to their operations.
Furthermore, SAP BRIM offers in-depth analysis of customer behavior, enabling media companies to customize offerings, deliver precise promotions, and optimize customer lifetime value. This feature is particularly beneficial in a competitive industry where personalized experiences are crucial for retaining customers.
Key Benefits
- Support for tiered, pay-per-use, and usage-based pricing
- Flexible plan management and bundling
- Advanced customer analytics for personalized services
- Adaptable pricing adjustments
Reference to Realtime case study – https://www.acuitilabs.com/sap-brim-case-study-media-company/
3. Software as a Service (SaaS): Managing Recurring Revenue and Scalability
Industry Overview
SaaS businesses represent the ideal model for recurring payment services, delivering cloud-based software solutions with a subscription-based approach. As companies expand, the necessity for an effective and adaptable billing solution becomes essential in efficiently managing subscriptions and recurring revenue.
Use Case
SAP BRIM is highly suitable for SaaS enterprises requiring seamless handling of recurring payments, upgrades, downgrades, and cancellations. Its billing system enables the automation of intricate billing cycles, encompassing monthly or annual payments, pay-per-user pricing, and multi-currency billing. Furthermore, its subscription management features offer transparent insights into customer lifecycles, simplifying the management of renewals, trial periods, and promotional pricing.
SaaS companies often deal with frequent alterations to customer subscriptions, including upgrades or cancellations of plans. The flexible billing engine of SAP BRIM allows for immediate adjustments to guarantee precise invoicing and revenue recognition, reducing revenue loss. Additionally, its scalability guarantees that SaaS companies can manage expansion without compromising on operational effectiveness.
Key Benefits
- Streamlined management of recurring revenue
- Real-time billing updates for subscription changes
- Multi-currency billing for global customers
- Automated revenue recognition to prevent leakage
4. Utilities: Supporting Complex Pricing and Consumption-Based Billing
Industry Overview
Utility companies, including those in the energy, and water sectors, often adopt subscription-based or consumption-based pricing models to bill customers for their usage. Managing this type of billing can be difficult due to fluctuating consumption levels and the need for precise billing practices.
Use Case
SAP BRIM allows utility providers to accurately bill customers based on real-time consumption data by integrating with smart meters to capture usage details, ensuring that customers are billed accurately for the resources they consume. The system supports both flat-rate and consumption-based pricing, enabling companies to offer flexible subscription plans that match customer preferences.
In addition, SAP BRIM’s invoicing capabilities enable consolidated billing, which is particularly valuable when customers subscribe to multiple services such as gas, electricity, and water. This enhances the customer experience by providing clear, transparent invoices that reduce the likelihood of disputes or billing errors.
Key Benefits
- Real-time consumption-based billing
- Integration with IoT and smart devices for accurate usage data
- Flexible pricing models for utility services
- Consolidated invoicing for multiple services
5. Automotive: Managing Mobility as a Service (MaaS)
Industry Overview
The rise of Mobility as a Service (MaaS) is driving a significant transformation in the automotive industry, offering customers the option to subscribe to vehicle fleets, utilize car-sharing services, or pay for usage-based transportation instead of relying on traditional vehicle ownership.
Use Case
SAP BRIM is a crucial tool for companies entering the MaaS market as it effectively manages subscriptions and usage-based billing, handling complex pricing models that combine fixed fees such as monthly car-sharing subscriptions with usage-based charges like mileage or hourly rates. This level of flexibility allows companies to provide attractive pricing choices tailored to different customer segments, including frequent commuters and occasional drivers.
Furthermore, SAP BRIM’s capability to oversee the entire customer lifecycle, from onboarding and usage tracking to billing and payment collection, assures a seamless experience for customers and operational efficiency for providers. This comprehensive automation reduces manual errors and guarantees consistent revenue streams for automotive companies venturing into MaaS offerings.
Key Benefits
- Support for fixed and usage-based pricing models
- Full customer lifecycle management
- Real-time tracking of service usage
Enhanced billing accuracy and revenue collection
Conclusion
SAP BRIM provides unmatched capabilities for subscription-based enterprises in various sectors, including telecommunications, media, SaaS, utilities, and automotive. Its adaptable billing structures, real-time data integration, and advanced revenue management tools enable businesses to expand efficiently, minimize revenue loss, and improve the overall customer journey.
For enterprises aiming to optimize their subscription models, SAP BRIM offers the agility and accuracy required to excel in today’s competitive environment. With its capacity to manage intricate billing scenarios and high transaction volumes, SAP BRIM ensures that businesses can concentrate on growth and customer satisfaction without being hindered by operational complexities.
Acuiti Labs has effectively worked for companies in telecommunication, media, ports, postal services, and various other sectors to integrate SAP BRIM for subscription-based business models. Our proficiency in providing tailored solutions has assisted these companies in simplifying their billing procedures and attaining long-term success. To learn more about how weâve made an impact, explore the detailed success stories in our case study section â Click here
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