IoT integration in different business models is a game-changer, and it simply describes how an organization creates, delivers, and captures value. In the technology world, where we are led by different technologies, the invasion of IoT is highly prominent and can’t be ignored.
Undeniably, the IoT- Internet of Things has continued to leave an impact on our personal and professional lives. Indeed, the benefits of IoT are subtle enough, and make lives better. And in the coming years, these benefits are going to enhance their spectrum par excellence.
It will help our lives to emerge with the improved structure with a secured environment to bring a difference to our lives. In the near future, the Internet of Things will keep flourishing and will offer incredible usage. But this very technology has also made an impeccable route for businesses to make the money out of it.
Yes, you heard me all correct, and this is where we are going to bring you information through this post.
Curious to know more???
Then hold your breath, as in this blog post we are going to discuss the different monetization strategies that are being embraced by different businesses.
Let’s dive in together…
1. Outcome-Based Model
It is a different set of approaches that are picked by the IoT business model, where customers only get to pay for the outcome (or benefit) the product provides, as opposed to the product itself. Customers are least bothered to understand what all efforts you invested in bringing that product in the real-life, but they want to access the final product and get the benefit out of it.
2. Asset-Sharing Model
One of the biggest concerns that lies with the customers is how far they would be able to utilize the equipment while buying an expensive one. To cut down the clutter, sharing assets mode comes to the rescue.
In this model, users pay a reduced price and are able to get faster market penetration, compared to when a single customer has to pay for your complete product. And they pay while sharing the product with others as well.
3. Subscription Model
This is one of the most used models, where it accentuates businesses to have a 24/7 connection with their customers. Here instead of picking a one-time sale, they can provide a subscription model, where customers would pay a fee in return for continuous value. It is more like introducing SaaS models to your business, where you can explore creative ways to monetize the products and even integrate a Freemium model.
4. Monetize IoT Data
The data collected from the IoT brings you value, as the bigger tech giants utilize this data to advertise and promote their services. With IoT, this model helps you build the product to provide value to the end-user and also to collect valuable data so it can be sold to a third party.
With this approach, you provide the IoT device at no cost to chuck away the buying friction for the end-user. It provides a clear goal to collect data and monetize it further while safeguarding the users’ privacy.
5. Pay-Per-Usage
IoT has the sensors on the hardware device letting businesses monitor the customer’s environment and how much they use the product. This brings a different environment into practice, letting businesses charge their customer for the amount of time they are actively interacting with the product. This is a win-win situation for the customers and business both, giving a great platform for them to make the most out of their offered services.
Food for thought
This was a quick look at some of the business models that can be picked to monetize your IoT product to gain value for your business. With the integration of these monetization strategies, IoT products can be used and integrated within different businesses to be monetized further.
If you are yet to experience the IoT integration within your business, then you must know that it is the best time to implement it and take the benefit out of it. As the future is going to be all about smart cities and IoT enabled sensors in the business model.
Seize the opportunity and build your business revenue with an efficient IoT product.
