Usage metering

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Usage Metering is a method used in business models where customers are charged based on how much they use a product or service. It enables companies to launch and optimize usage-based pricing by delivering accurate, detailed usage summary records to the billing system.

Usage data is central to successful metering. It includes information about how, when, and where a customer uses a service or product. Usage metering refers to the process of monitoring, measuring, and recording this data, which can then be used to calculate charges under a usage-based pricing model.

Usage Metering on Usage Engine is purpose-built software designed to solve complex usage-based billing challenges that require advanced usage data management and metering capabilities. It allows companies to efficiently introduce and optimize usage-based models for assets, transactions, and events over different periods, without the need to replace existing billing or other systems.

Usage metering offers standard APIs and an intuitive graphical user interface, making it easy to manage and access all metering-related information. This leads to faster time-to-value and significantly reduced technical complexity.

With a low-code experience, users can create metering solutions tailored to their specific business needs. Key features include:

Thresholds are another essential feature. They let you define usage limits on meters, either as whole numbers or as a percentage of a meter’s capacity. This enables proactive monitoring, notifications, and custom business actions whenever certain usage levels are reached, ensuring you can effectively manage customer usage and enforce business rules.

Since Usage Metering is built on the Usage Engine, which includes robust data mediation capabilities such as correction and verification, you can guarantee data quality before processing and metering, without the need for extra integration tools.

Getting Started:

1. Identify the product to meter: Choose a product or service metric that aligns with your industry, service, and customer needs.
   Example metrics:

   • Movie streaming: Minutes watched, Movies watched

   • Ridesharing: Distance driven, Minutes driven

   • Printer manufacturing: Number of prints, Number of cartridges

2. Understand your usage data: Ensure you can identify, access, and extract the required information to meter the product effectively.

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