Feb 13, 2018

Five Benefits of Outcome-Based Pricing Models


Five Benefits of Outcome-Based Pricing

Adopting new technology to improve your customer service experience can be a complex undertaking. It’s a significant investment, and with the sheer number of vendors offering varying solutions, determining which one will work best for your organization’s unique needs can seem impossible. How will you get everyone to agree on one solution? What if the technology doesn’t work as expected?

Choosing a technology solution that’s available with an outcome-based pricing model is an excellent way to remove many of the concerns associated with customer experience investments.

Below we review the top five benefits outcome-based pricing (OBP) models offer your business.

1. Better understanding of your company’s challenges

Every organization has its own unique challenges and goals, and often, a one-size-fits-all software solution isn’t equipped to address everything effectively. With OBP solutions, vendors work closely with you to understand your challenges and goals in order to develop a custom plan aligned to your business objectives. This tailored approach better ensures your software implementation will be a success.

2. Pay for results, not technology

Common pricing models, like premises-based software or SaaS models typically require software fees, yearly maintenance fees or annually recurring fees to be paid regardless of how the solution is performing. This regular payday places zero incentive on the vendor to ensure their technology is delivering the results that were promised. With OBP solutions, vendors are paid only when agreed-upon performance targets are met. This means you are never wasting money on ineffective or underperforming technology  – you’re paying only for performance.

3. Reduced Risk

With many traditional pricing models, your organization is the one assuming the bulk of the risk. If the solution doesn’t deliver as promised, your business is still stuck footing the bill, and will likely incur additional costs as you attempt to fix whatever isn’t working. With outcome-based pricing, if the agreed-upon business outcomes aren’t met, the vendor doesn’t get paid. Essentially, the vendor is the one assuming all risks associated with non-performance – not your organization. The vendor is also responsible for finding a solution when things aren’t working as expected.

4. Invested in continued optimization

When a vendor is being paid to deliver results, you can all but guarantee they’ll be committed to continued optimization to ensure their solution consistently meets – or exceeds – expectations. When you win, they win. When they win, you win. OBP vendors can also help you develop a transformation roadmap and alter as necessary when new business challenges arise, and you can trust you’ll always get the best advice because the outcome impacts their bottom line as well.

5. No hidden fees or surprise expenses

There’s nothing worse than opening a bill and being hit with a flurry of hidden fees or surprise expenses. This is a very real possibility with many traditionally priced tech solutions, who often charge extra for providing essential professional services. With OBP models, you’ll never be asked to pay extra for maintenance or support - everything is included in the price.

Remove the risk from your customer experience upgrade. Contact [24]7.ai today and learn how we can work with you to develop a custom OBP solution that will improve your customer experiences while helping you meet your business objectives.

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