Monetizing IoT Device Transactions
COMPANY: World-leading communications platform company.
LONGEVITY: Using Poetic for 13 years.
Devices can be purchased or sometimes rented by end users. In the case of rentals, customers might pay for actual usage of the device rather than for the mere possession of the device. This pay-for-usage is common today in the telecommunications and software industries, and it will become more common for other devices as more devices connect to the Internet and report on their usages.
One German-based technology company already uses Poetic to help it track clients’ usage in order to bill them for actual work done with their devices.
The device is connected to the internet and reports its usage information to a service maintained by our client. This service groups the thousands of data points by device and sends that summary information to Poetic, where it is stored against a record of the device and the entitlement to use that functionality.
This usage information is then passed on to our client’s billing systems along with the entitlement and contact information stored in Poetic. Based on the usage and the customer’s service agreement, they are billed for the actual usage of their devices.
Benefits and revenue opportunities:
- Pay-per-use and pay-per-value revenue models.
- Subscription-based revenue models.
- Like the cell phone industry has done for so long, other device manufacturers will be able to give the product away and charge monthly based on the actual use of the device. Customers all like this because they will only pay for what they need as they need it.
- Improved visibility into the actual use of device features allows for better targeting of product development efforts.