Billing system as a Cost optimizer in economic down turns
The most obvious and salient features of an effective billing system would be:
Configure price plans and rates
Capture call data effectively
Rate calls accurately in a timely manner
Generate bills on time and provide accurate invoice
But, with cut throat competition in the telecom sector, it is imperative for Communication service providers to constantly explore ways to differentiate in the market. Exploring the power of an effective billing system beyond the obvious outcomes would help the CSPs in the long run to reduce costs and generate new revenues. This will also help CSPs in gaining larger market share and retaining customer loyalty.
One such opportunity would lie in using the billing system effectively to optimize the operational expense (OPEX) of the CSP. Listed below are the few activities that can be performed via an effective billing system to optimize the cost of the service provider:
Segment the subscriber base by mapping relevant categories from usage trend to the new category of service being introduced. Say internal segmentation based on Mobile usage, data usage, SMS Usage, MMS and other VAS usage. This would optimize the CSP’s marketing expenses for target audience identification.
Integrated Customer communication to increase customer engagement and hence reduce nonpayment. This can be achieved via billing system as follows:
SMS/Mail/IVR on Bill generation
SMS/Mail/IVR on due date
SMS/Mail/IVR on loyalty points
SMS/Mail/IVR on Credit limits
Analysis of payment modes will enable payments within the desired timelines. An example would be to suggest a customer who makes payment through his credit card or debit card each time, to switch to Standard Instructions/Electronic Clearing Service (SI/ECS) enabling auto debit from customer’s account.
Analysis of payment locations will enable the service provider to take decisions with respect to increasing or changing the customer touch points like retail outlets, payment outlets or company owned showrooms.
All these cost optimizers and more can be derived out of a billing system effectively and these can be outsourced activities with a revenue sharing cost model or billing in accordance with cost savings achieved by the client.
What is your POV on this? Thoughts, if any, are more than welcome.
Comments
hey,
need some inputs/coverage on accuracy on billing.areas of pre billilng audit checks etc etc.
Posted by: sooraj nadaraj | January 16, 2010 06:29 PM
Hi Sooraj,
Sure! Revenue assurance is the biggest challenge and can be achieved by implementing the Billing system effectively.
The revenue assurance team should be part of the discussion in any implementation or enhancements of Billing systems to give the requirements and gaps the current system has.
There can be a checklist to check if all the current recurring revenue leakages can be fixed in the system through enhancements/new implementation of the Billing system which can save millions of money.
Do you any other specific pain points to be addressed? Wish to provide inputs on that.
Posted by: Sripathy | January 18, 2010 08:17 AM
Hi sri,
I agree with your comments, proactive churn is the order of the day, this can be done by understanding and close stuyding the customer behaviour pattern, this can be effectively done only by having effective billing and CRM also well integarated. This should keep throwing us customer trends and behaviour patterns in a regualar intervals, also need to raise alarm when there is sudden change in customer behaviour pattern.
Posted by: ramgopal.s | January 31, 2010 12:51 PM
Hi Ram,
You are right, Billing systems need to be integrated with the analytics/Data warehousing system in an effective manner to ensure that the Business managers like you can leverage the information available to the fullest.
These Alarm's that you mentioned would be of great help to business manager to identify sudden change in the customer usage trend or payment trend.
If a customer who has been paying on time for years does not pay for a month, then there can be reason like service lapse or dissatisfaction. Hence even the payment information is as important like any other info available in the billing system.
Any comments on this Point of View?
Posted by: Sripathy | February 1, 2010 08:00 AM