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Use Case: Bill Usage at a Custom Price

Assumptions and Preconditions

  • The subscription has the status Active.
  • The client knows the next reminder date for the subscription because the subscription must be updated with usage information before this date. The new purchase is created in the cleverbridge platform on the next reminder date. In order to be billed, the usage information must have been applied to the subscription record in the cleverbridge system.

Description

Livesplash is a client that offers a video storage and streaming platform subscription. The monthly billing amount for every customer is based upon two subscription items:

Item Price
Access $50
Streaming Usage $7.50 per 1,000 streams
  1. On June 22nd, a customer contacts Livesplash to explore ways to contain the cost of their subscription, which, due to rapid growth in the customer’s business, has exceeded $10,000 per month.

  2. Concerned that the customer might shift some of their business to a competitor, the client negotiates an offer to reduce the customer’s Streaming Usage price to $5.75 per 1,000 streams for all future billings.

  3. After the customer accepts the offer, Livesplash uses an intranet page to change the Streaming Usage item price for the customer’s subscription.

  4. At the end of the day on July 14th, a program running on Livesplash’s system does the following for each subscription with a renewal date of June 15th:

  5. On July 15th, the customer’s next billing date, the cleverbridge platform automatically bills the customer $7,870, which is $50 for the Access subscription item plus $7,820 for usage (the quantity of 1,360 times the price of $5.75).

Options

Although not utilized in this use case, the following option is also available:

  • Reduce the subscription billing amount by applying a discount coupon that was set up in the Commerce Assistant.

Tip

Obtain the customer's consent for changes to subscriptions. For more information, see Best Practices: Obtaining Customer Consent.

Illustration

sub bill usage usage custom price