#5 customized pricing

While companies may be tempted to focus on cost, as they have done for many years, the best players will take a more thoughtful approach by developing a detailed understanding of their connectivity needs often for the first time and then seeking providers who combine top capabilities with tailored solutions. With the right connectivity provider, companies will be able to take IoT to a new level and their bottom line will reflect the results.

Tailored usage plan

Usage plans are hardly one-size-fits-all. The usage patterns of a static meter fleet are radically different than that of a global logistics fleet. Similarly, pacemakers and electric scooters also have different coverage priorities. Should they all be paying the same way for the same access to data?

Egalitarian ethics aside, it doesn’t make sense for an enterprise to pay for data they don’t use, or for coverage they don’t need. You have to spend money to make money, that’s true but let’s not burn it.

Know your needs

When evaluating their options, most companies choose a standard plan, rather than requesting a customized offering, because they lack insight into their connectivity needs and usage patterns. Without this information, they often pay for unnecessary features, such as a data-volume allowance that far exceeds their requirements.

Flexibility to scale

Many connectivity providers are able to offer the world (literally global coverage) but what if you only operate in one country? Probably you expect to expand, but consider choosing a provider that can grow with you. What if you launch a new product that has radically higher data usage than your first product?

Choose a provider that has the flexibility to adapt a data and coverage plan to the scope of your business, not one that relies on one decent plan to meet the needs of every kind of business. Young enterprises must be daring but frugal. Careful not to throw money away today on projected data needs for the future.

One provider, one contract

Another mistake many make in the IoT market is choosing the best provider per region or country. This can result in dozens of different contracts, platforms, bills, and usage statistics.

This approach is anything but simple and not usually cost effective after taking into account the administrative nightmare that is managing devices over various networks and platforms, as well as keeping up with the billing, and trying to aggregate analytical data over various systems.

That’s to say nothing of roaming devices, devices that migrate, or the poor bargaining position assumed by having several small agreements instead of one larger contract.

By choosing a single provider that can tailor a solution to your current data and coverage needs, as well as scale and adapt to your business goals, you are making the best possible investment in the future growth of your enterprise.

This blog series is in response to, and includes various quotes from the article by McKinsey & Company: https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/unlocking-value-from-iot-connectivity-six-considerations-for-choosing-a-provider

McKinsey & Company is a management consulting firm helping organizations across the private, public, and social sectors for over 90 years.