Integrated Billing & CRM for the Prepaid and Postpaid Telecom Industry
European Communications
By Isaac Eldar , VP, Marketing - Formula Telecom Solutions
Convergence is no longer just a 'buzz word' or an untested trend; rather it is a reality - and a growing one at that. At the end of 2004, dozens of projects for integrated Pre and Postpaid Billing & CRM projects around the world were in various stages of implementation. No longer is integration the Holy Grail it once was, and operators no longer have to dream about reducing OPEX and increasing ARPU with a real unified pre postpaid solution enabling same services, discounts and promotions to all subscribers on a SINGLE - rating, balance management, billing and CRM - PLATFORM. Now, operators can acquire and deploy the tools to create a two-way information superhighway between prepaid subscribers just as they have done with their postpaid subscribers.
My company, Formula Telecom Solutions (http://www.fts-soft.com/), is driving this trend. During the past 18 months, FTS has completed deployment of two comprehensive integrated pre and postpaid billing & CRM projects, and we are in the final stages of bringing two additional systems on-line. We believe that a convergent solution needs to provide the proper mix of tools and applications for both Greenfield as well as established operators to make a successful move to a unified, working system.
As in all business cases, information is power and the more information the operator has about its subscriber base, their habits and their needs, the more the business can build its strategies to grow and thrive. This is true for both pre and postpaid subscribers, as a two-way information stream with prepaid customers enables them to receive benefits as if they were postpaid subscribers. Usually anonymous prepaid customers are therefore not approachable by the operator for new services, discounts and better service. Indeed, prepaid subscribers thereby producing poor ARPU. Postpaid subscribers, on the other hand, have ARPU five times higher due to CRM activities. Though a minority of prepaid subscribers are intentionally anonymous, the vast majority are pleased to provide their details should the operator offer them a bonus for doing that. With this information, the operator can utilize CRM outbound Campaign Management and up-sale newly accessible prepaid subscribers.
Operators able to utilize predictable usage patterns and able to move quickly when these patterns change - or actually capable of changing the arrangements in real-time - are those that will succeed in being the number one provider for next generation services and technologies. Customer loyalty will no longer go to the company that can just plug phones into the fastest network or provide the nicest mobile unit, rather, it will move to the operator that can package the best services attractively and efficiently.
An enhanced Converged Billing solution fulfills telecom operators' requirements to deploy a unified, pre and postpaid billing and CRM platform. It is key that the system be devised to enable operators to cut operational costs while simultaneously improving customer care, maximizing revenue generation and reducing churn rates. The converged tool's power comes from a design that minimizes credit risks, reduces costs and increases revenues when billing for existing and new emerging services and doing it in real or near-real time.
An important element of the very specific converged solution’s design is its foundation upon a single comprehensive platform that includes a mutual rating engine and single CRM encompassing the operator’s entire subscriber portfolio. This platform supports the advanced “one customer, one database” approach and is completely comfortable with varied and multiple payments methods. Thus, complexity throughout its network is diminished and marketing, billing and rating management is made easier and operational efficiencies are generated.
A real-time rating technology embedded in the converged solution benefits the operator’s bottom line and operating expenses while contributing to a subscribers’ comfort level within an environment in which new and additional services are continually offered. A converged rating engine contributes to provision of real-time transaction management; parallel rating of services from a single balance such as the ability to download a file and talk on the phone concurrently from a single prepaid balance; the ability to interface to third party content providers to provide a wide range of services and products; and advice of charge to notify customers if there is not sufficient credit to successfully complete a transaction before they start their download.
With a built-in unified CRM package, the converged solution enables the subscribers to recharge prepaid accounts from postpaid accounts (e.g. parents to children) and the operator to offer all users special deals and promotions, something that was not possible before. Look at any popular magazine or watch any television station and you will see that today’s customers – both pre and postpaid – read about, see with others and want to experience a broad range of advanced services whether they be video, music, or multimedia.
A unified CRM package also generates a single database from which all customers can be offered flexible services and tariffs to increase spending, instead of just those in a postpaid program. Integrated customer management allows a seamless link between all business processes touching the customer resulting in a truly customer-focused organization that identifies opportunities, builds stronger more profitable relationships and resolves customer issues. This environment enables the operator to deliver enhanced services and generate advantages in any competitive marketplace. It provides a method for nurturing prepaid customers from today’s services to sophisticated next generation offerings and enhancing customer service.
The power of a unified billing & CRM solution also comes from the ability to execute marketing and sales campaigns and push exciting service/bundle offerings to all targeted subscriber regardless of their payment method. For an operator, this opens a new world of opportunities. It can monitor both prepaid and postpaid subscribers behavior and adjust services to take advantage of changing customers’ needs. This includes crafting and deploying pricing plans and services that combine prepaid and postpaid offerings to enable broad-based customer loyalty plans, introducing hybrid prepaid-postpaid accounts, and offering cross-channel discounts and benefits.
Pre and Postpaid Convergence is not a dream that will automatically guarantee business success. Rather, it is a tool to allow an operator to offer more enhanced services and new service mix, which then must be promoted vigorously and effectively for success. This final step requires strong business strategies, the right business intelligence and the right people in the organization for implementation. FTS is proud to be pioneering the development and deployment of these solutions around the world. With 3G on the cusp of true deployment, a single, unified billing, rating and CRM system for pre and postpaid subscribers should be a major element of any operator. FTS is there and ready.
