Billing Trends in the Telecommunications Industry: A Review
This presentation, part of the Executive Track Sessions, was given by TimelyBill's Director of Sales, Luke Crissy, at the Compliance Solutions Inc. Executive and CPA/CPE conference in San Diego, CA, from September 9 to 11, 2019. It focused on trends in the billing vertical.
Key Themes:
Shift from Traditional Billing Systems: Organizations are moving away from complex, fragmented billing systems reliant on homegrown and third-party applications cobbled together with middleware. Crissy highlights the inefficiencies and risks associated with such systems, including “empire building” and loss of intellectual property when personnel depart.
Demand for All-In-One Solutions: CSPs increasingly seek comprehensive solutions that cover the entire “Quote to Cash” process. This includes CRM, quoting, order management, provisioning, billing, taxation, commissioning, agent management, customer portals, and reporting. A key finding from TimelyBill's inquiries shows a strong preference for all-in-one solutions (22%).
Automation and Integration: There is a clear need for automated processes and seamless integration with third-party applications. This reduces manual intervention, minimizes errors, and improves efficiency throughout the billing lifecycle.
Emphasis on Customer Experience: CSPs focus on enhancing the customer experience through features like customizable invoices, online portals with self-service capabilities, and efficient collections processes that leverage automated communication and actions.
Most Important Ideas and Facts:
The "Single-Stack" Approach: Crissy advocates for single-stack solutions that can handle diverse functionalities without sacrificing depth. He cautions against solutions that are merely "skin deep" and stresses the importance of robust capabilities.
Challenges of New Technology: Advancements like 5G and IoT introduce complexities in billing due to their usage-based nature and evolving taxation regulations. Traditional accounting software like QuickBooks proves inadequate for these services.
The Importance of Flexibility: Solutions must be flexible to accommodate various billing scenarios. This includes:
Bundling: Offering services in packages while maintaining visibility and accurate taxation.
Configuration: Rules-based configurators help streamline the sales process and eliminate errors.
Discounting: Providing options for global and line-item discounts with appropriate authorization controls.
Streamlining the Quote to Cash Process: Each stage of the process presents opportunities for automation and optimization:
Quotes: Customizable templates and electronic signatures enhance efficiency.
Order Management: Selective order processing allows for billing flexibility when services are activated at different times.
Provisioning: Integration with switching platforms automates service activation, termination, suspension, and resumption.
Billing: Flexible rate plans, customizable invoices, and targeted message insertions improve customer communication.
Taxation and Compliance: A reliable tax partner is crucial for accurate and compliant tax calculations.
Collections/Dunning: Automated triggers and customized correspondences streamline collections and minimize manual effort.
Customer Portals: Robust portals offer self-service options, detailed reporting, and access to usage data.
Empowering Agents: Agent portals with branding options and accurate commission tracking are essential for attracting and retaining sales talent. Automated commission calculation and timely disbursements are key motivators.
Significant Quotes:
"Organizations are increasingly looking for a single application that can span across as many features as possible without sacrificing depth."
"You’ve heard the term – 'Jack of all trades, Master of none' - the last thing you want is to start peeling back the layers of an application only to find out that its beauty is only skin deep! It’s gotta work!"
"Understandable that in some cases, customers will want, or need, to utilize an existing application. The solution needs to be able to interface with 3rd party apps seamlessly, securely, and automatically with as little manual intervention as possible."
"ONE SIZE DOES NOT FIT ALL: One shouldn’t have to take the time to alter every quote to fit the prospect’s needs."
"Eliminates human error!" (Referring to benefits of rules-based configurators)
"Taxing component is more crucial than ever. New technology brings new rules."
"I believe that nothing will encourage your agents to promote & produce more than TIMELY payments!"
Conclusion:
The telecommunications industry is undergoing a significant shift in its billing approach. CSPs seek comprehensive, automated, and customer-centric solutions that streamline operations, improve efficiency, and enhance customer experience. The "Quote to Cash" process is central to this transformation, emphasizing automation, integration, and flexibility. Solutions that address these evolving needs will be well-positioned for success in the dynamic telecommunications market.