Monetizing Applications, Goods, and Services Using Entitlements

Essential to monetizing services in a subscription and usage-based model is Entitlements – a word to demystify and promote as essential to verifying and authenticating individual subscribers. Only with Entitlements can businesses determine if and how subscribers can execute activities and access content, products or services, as well as accurately rate and charge subscribers based on those activities.

Entitlements are critical to optimizing revenue capture and preventing revenue losses, as they delve into information records BEFORE an activity is authorized and allowed. An activity can be:

  1. Download of a song/wallpaper/movie/book/image or other piece of content

  2. Launch of a streaming connection for music / movie

  3. Access to a digital version of an article

  4. Creation of an object in a SaaS application, e.g. a new project in a program

  5. Management application, an expense report, a time-sheet

  6. Scan of a bar-code

  7. Redemption of a coupon

In essence, Entitlements ensure that critical questions are answered quickly so that services are appropriately provisioned, activated and/or billed. The types of questions entitlements answers include:

  1. Does a subscription on the correct level exist?

  2. Does the subscriber have overdue invoices?

  3. Is there an allowance left to be able to process a new activity?

  4. Is it possible to charge an amount for an individual activity?

The Challenge Because many applications support different products (each with different allowances of what the subscriber can do in terms of access and activity), Entitlements require constant management. This is particularly important as business create, modify and decommission services and products, as Entitlements can change with every new product release or modification. Without proper management, the process of managing Entitlements can spin out of control.

To prevent trouble, businesses need a system that can ensure each subscriber only has access to the parts of an application, good or service to which he or she subscribes. That requires real-time transactional performance, agility, and the flexibility to integrate with customers’ existing systems so that business users can keep up with changes without having to do coding or having to create metadata.

Our TRACT® solution is designed to continuously analyze and synthesize subscriber usage data and product information – very useful as businesses evolve their products and as their subscribers’ behaviors around usage and preferences mature over time. Any subscription billing solution that does not address this in as robust a fashion is not worth the investment.

To learn more about subscription and usage-based billing platform, TRACT®, Contact or call us at 512-829-4000


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