Making It Pay

As Business Management discovered when we spoke with three leading industry experts, a new generation of billing and CRM solutions is opening up a plethora of services and giving companies that crucial competitive edge.

BMUS. In what ways are today’s billing systems limiting operators and preventing them from maximizing on potential revenue?
BJL. One of the biggest billing challenges today is tackling the problem of revenue leakage. In the past few years, many operators have bought into the concept of ‘best-of-breed’ products with systems integrators providing the glue to complete the solution. This approach usually requires a great deal of data replication and, if the systems are not properly integrated, errors and leaks can occur very easily. There is also a huge disparity between the capabilities of the prepaid and postpaid systems. Many operators have treated these two areas completely independently, resulting in separate systems with no integration and the inability to offer common services to the entire user base.

Time-to-market for new services is also critical, but many operators are still struggling with legacy billing technology, which requires continual customisation to implement new marketing schemes. A rules-based approach and flexible product packaging is now essential to enable differentiation in a highly competitive market.

MC. Bundling and convergence are the core strategies for service providers today as they compete with new players to keep and grow their customers. Many are held back by inflexible billing systems, ones that are functioning as silos for specific services, limiting their ability to rapidly introduction new services or cross-sell and bundle services together.

MH. Unfortunately, many of the service providers that implemented best-of-breed systems in the past decade find themselves incapable of introducing new services due to a fragmented BSS landscape. Commonly, huge resource investments and impractical schedules rule out new promotional services or cross-product offerings and discounts from realisation. Furthermore, revenue leakage is a major area of loss stemming from non-synchronized systems or ‘cracks between the walls’ and a general inability to detect business literally falling through these cracks due to unaligned business processes. Inefficient IT systems prevent CSRs from giving customers the service they expect - causing (employee and customer) frustration and consequently churn of both.

BMUS. How can a real-time billing strategy address some of these issues and enable operators to maximize on the opportunities created by emerging technologies? How is it giving companies that crucial competitive edge?
BJL. Real-time billing allows operators to offer a wider range of services to the prepaid user base. Where they may have been able to get away with “hot billing” based solutions for low value services such as SMS, real-time billing is essential for higher value services where the financial risk is much greater and a user balance must be checked before the service is delivered. Real-time billing can also provide some benefits for postpaid users, allowing spending control and avoiding ‘bill-shock’ syndrome where users try out new services without realizing how much they cost.

Usage of data and content services is still relatively low, but as this continues to grow real-time billing will become a much bigger factor. It will be essential that the platforms are scalable to support the growth and manage the peak-time throughput – otherwise subscribers will be prevented from accessing services, resulting in lost revenues and potential churn.

MC. As customers become accustomed to on-demand services, operators face pressure to provide flexible billing options. A real-time world gives customers control over their relationship with the service provider. Rather than having all services lumped into a predefined billing cycle, customers can decide at the moment of purchase whether they would like to be billed, pay out of a prepaid debit account, charge a credit card, or apply a spending limit to a post-paid service. Further, they will have the option to assign different characteristics to different services within the same account. For example, kids’ online gaming and mobile phone usage may placed be on a spending limit, prompting Mom and Dad to ‘top-up’ when a predetermined threshold is reached – all of this requires real-time interaction between consumption of services, the billing system and the network itself.

MH. First of all, a real-time billing strategy enables the implementation of centralized fraud management able to detect and deter fraudulent usage and salvage lost revenue. With flexible COTS (commercial-off-the-shelf-software) BSS, the service provider can introduce hybrid convergent post and pre paid services, crucial for offering new technologies. Additionally, clear and concise billing reduces costs drastically and enhances the customer experience through a more friendly experience.

Historically, service providers that invest poorly in their business support systems don’t last. The ability to introduce to the market new technology quickly and create value for the customer through creative product management and integrating in the value chain seamlessly, gives the service provider the advantage that puts competition in the rear view mirror.

BMUS. What are the benefits of having a seamless system capable of handling all kinds of data throughout the customer lifecycle? What currently are the limitations and how might these be addressed in the future?
BJL. Convergent billing solutions provide a customer-centric approach rather than the service-oriented ‘silo’ approach, which resulted in operators needing to manage multiple separate systems for different types of service – fixed, mobile, broadband, content, etc. However, systems need to be designed for convergence from the start – adapting a mobile specific system to the needs of fixed, or broadband to mobile, requires major re-engineering.

Pre-integrated solutions, which manage all aspects from customer relationship management to mediation, rating and billing, provide operators with many benefits in terms of greater operational efficiency, better revenue assurance and improved billing accuracy. Common workflow management is a key element allowing processes to be mapped across each functional area, providing end-to-end process flow and control.

MC. This is the major issue in the industry today. Service providers of all kinds are working towards creating a superior and profitable customer experience across a wide array of services. This can’t be accomplished when your systems and business processes are disconnected and inefficient. Without an integrated customer management approach, for example, a call center agent may have to use manual processes and access between six and 10 systems to issue an order for a triple-play bundle. The customer may also have to deal with several different departments, which causes delays, errors, interruptions, data loss, and exposure to potential revenue leakage. As we move forward, the service providers are shifting their business processes, organizations and systems to orient around specific customer experiences they wish to create, rather than individual network services they want to sell. This integrated customer management approach drives lower costs, creates greater customer loyalty and fosters innovation and growth.

MH. Only a central, modular, synchronized, normalized system that covers the complete customer lifecycle (order to cash) and related processes, enables business process alignment to reduce errors, inconsistencies and revenue leakage. Such an infrastructure can display the actual correct perspective on a customer enhancing the quality of service offering and enabling analytic applications to take advantage intelligently of available data.

High levels of required system performance coupled with functional complexity and an existing fragmented IT and OSS infra structures create challenges that must be dealt with on a strategic basis. A correct, simple and integrated architecture is the answer.

BMUS. So the customer is really benefiting from these new billing and CRM solutions then?
BJL. New billing and CRM solutions can open up a wider range of services to all types of customer, regardless of their chosen payment method. However, prepaid customers today still pay a premium for their services, despite paying in advance. They do have the added benefit of not being tied into a contract, but it is likely that the pricing for prepaid services will converge to that of postpaid as we move forward.

Nevertheless, it is really important that the end-customer doesn’t need to know about the new billing and CRM solutions themselves. They just need to have 24x7 availability of their telecom services, and customer services. There is nothing more frustrating for a user than not being able to use their services or being told by call centre staff that the ‘system is down’ or ‘running slowly today’.

MC. By adopting an integrated customer management approach, a service providers’ resources are aligned around the customer, providing visibility across all services supported by the network and insight into how and when customers use their services as well as their personal preferences. This creates unlimited opportunities to leverage the customer experience to maximize value for both the service provider and the customer, particularly in the areas of personalization, self care and content management.

MH. Synchronising disparate CRM and billing systems is a major test for any integrator and failures are widespread. My suggestion? Reduce risk and save the costs. Unified CRM and billing creates a consolidated, updated picture of the customer, which enables real time validation and authorization for enabling new technologies such as real time content and data access. In addition, a clear customer view is what a CSR needs to serve the customer best. In contrast, when the customer data is distributed over so many systems it’s difficult, if not impossible to obtain a clear picture quickly. Unified platforms create a single point where all information regarding the customer is neatly and efficiently located, accessible by all – even the customer.

New technology offers customers direct access to their accounts. This nurtures trust, and enables greater awareness and acquaintance with new products to increase engagement all this through multi channels such as phone, web, SMS, PDA, IVR and/or kiosks.

BMUS. Beyond customer interaction, how can the data generated by these tools be used to develop other key areas of business – what are wider benefits for sale and marketing, inventory, etc?
BJL. Billing and CRM systems contain a wealth of information about customer usage patterns, which can be used to improve promotions or target new services to much more focused market segments. Operators need to learn from the leading supermarkets, who segment their customer base into many thousands of small groups for specific offers and loyalty schemes. Knowledge of each customer’s equipment is an essential part of this, allowing precise targeting according the capability of each handset.

MC. The inbound contact center becomes the primary channel through which company communication, as well as cross-sell and up-sell opportunities, is executed. The role of the contact center agent has expanded considerably with each agent, now acting in three ways: a customer service expert in order to solve issues efficiently; a customer advisor for potential relevant up-sell opportunities; and an empowered agent leveraging technology to maximize every customer contact.

In order to become successful in each of these roles, contact center agents require best of breed, ‘intelligent’ technology support. Currently, access to critical data is still locked away in multiple systems, making it exceedingly difficult to find the right information at the right time. As new products and services are introduced, corresponding individual legacy systems, both for billing and customer care, are installed in conjunction. To the contact center agent, these new products and services mean additional screens, systems and terminals to be navigated through in order to even attempt ‘efficient’ service. Additionally, many agents are frustrated by what can best be seen as conflicting priorities – reduce call handling time and increase sales. 

MH. With such a unified platform, a service provider can quickly identify and support marketing initiatives of tailored offerings targeted at customer segments. This will induce a proactive approach of benefiting the customer with more attractive offerings, reflecting in increasing customer loyalty and satisfaction. The service provider, able to perform customer scoring and auditing, can differentiate between customer classes in order to achieve superior customer service where economically advantageous.

The central or adjunct product catalogue is a unique tool that can enable central government of business processes and can serve as a focal point for all products. Ask a service provider “what do you sell to your customers” and you will get a different answer from every department. The answers to this seemingly trivial question, offers key information on non-profitable products that should be terminated; while also offering valuable insight on areas that product management, sales and marketing personnel should be focused on effecting an optimisation of work force distribution, resource allocation, purchase planning.

As the value chain in telecommunications continues to be elaborated, sophisticated tools are required to support the segmentation; the B2B interactions between service provider and the various distribution channels; as well as the technological, network and content providers creating value for the customers.

BMUS. What about the hard facts: how easy is the technology to implement, is it flexible enough to last the distance and, above all, where’s the ROI going to come from?
BJL. Pre-integration of software products brings a massive benefit in terms of faster implementations, removing the need for expensive and lengthy systems integration projects. It is also proven to improve revenue assurance. Industry analysis of so-called ‘billing errors’ frequently identifies conversion of orders to billing items as the root cause of many problems. Therefore, properly integrated order management and workflow provides a smooth and accurate transition from order to bill, helping to eliminate revenue leakage at source. A pre-integrated product suite from the same vendor also offers a long-term business support solution to the continually evolving demands of the telecoms market. It enables individual products to be upgraded easily, providing forward compatibility with future versions of the product suite and delivering the maximum ROI.

MC. Moving to an integrated customer management (ICM) approach is not an overnight process – it is a journey. The critical success factor is to develop a vision and blueprint for the future state of the business – oriented around the customer experiences you wish to create in each market segment – and then to ensure that each IT project undertaken can deliver short-term ROI for the business today, while moving a step closer towards the ICM blueprint. The right technology will allow service providers to address both the short-term and move closer towards the long-term vision without through-away. Some major advancements here include a common product catalog across processes like billing and CRM; enterprise process management tools, pre-integration across the BSS/OSS/CRM domains (including the guarantee of synchronized roadmaps and upgrades into the future), common user interaction and self-service platforms, and vendors that can deliver both the full suite of software products plus the knowledge, expertise and delivery capabilities to execute such major transformations. Companies like Elisa in Finland and SBC in the US are taking this journey today.

MH. Through a phased approach, embracing and implementing a modern BSS landscape will effectively reduce costs, enable new business opportunities and reduce revenue leakage.

Phasing out legacy systems results in drastic operational cost savings in reduction projects that replace multiple ineffective sedentary systems with a single convergent system. The advanced capabilities delivered can put the company into positive motion with ability to categorically support and create new business opportunities and quickly target offerings to the customer segments. A unified platform can reduce fraud, reduce employee turnover and reduce churn.

The advances in the technology itself, make the technology easier to implement today than in past years. However, there are no miracles and unravelling the twisted knots requires patience and diligence. It’s time to stop creating patched, bandaged solutions and face the issues with experience, composure and knowledge. Is there another alternative?

Fortunately, recent technological advancements in software architecture and paradigms present the service provider with a viable, standardized and robust alternative at relatively low costs with a quick business impact.