Develop new market segments with Pay per Use

pay per use

A company that makes and sells expensive equipment has equipped its machines with sensors, connectivity, and security mechanisms. Now, users can log on and get charged per use, and they don't have to buy the equipment. This way, the company has unlocked completely new customer segments and achieved significant revenue growth.


Problem Statement

The new target market can't afford the machines. Growth is limited as traditional markets are saturated.

 

Solution

The machines have been equipped with a user login, very precise sensors and strong security mechanisms, to avoid misuse. Then they were connected. Whenever someone logs on to the machine, and uses it, data is sent to the new Internet of Things platform. Customers can buy packages, i.e. to use the machine 100 times, or a monthly flatrate. The machine can be shared by multiple users, and everyone can pay their own usage. 

 

Result

Significant revenue growth via unlocking new market segments.