It is a common belief in the telecom industry that competition is bad for business and good for customers. Most established players in the telecom industry cringe at the sight of a new entrant.
They know that a new telecom operator, in his attempt to attract customers, will drop the price of his services, which will adversely affect their own revenue streams. And, considering the state of the market as it is today, they would also have to drop the price of their services to stay competitive. Not a good situation to be in? Not unless you have the best telecom billing systems that let you create new offers and discounts on your services.
Discounts – The Game Changers
Most traditional telecom billing systems employed by telcos are not very flexible. These traditional billing systems were developed by telecom billing companies to address initial telecom services – voice and SMS. However, the scope of operation in the telecom industry has expanded considerably with the inception of new and more complex services like data, IPTV, OTT etc.
The transformation in the telecom industry has brought up new challenges for telcos, who are struggling to impart their fundamental services with due diligence, let alone come up with new discounting strategies to garner customer interest. Their inability to apply innovative discounts like cross-product discounts prevent them from competing with new vendors in terms of cost. This can be made clear from an example cited below.
Suppose a new entrant drastically reduces the price of his voice service and you feel incapable of matching his offer; it will automatically drive some of your customers towards him. The major reason why one does not want to reduce the price of his services is because it directly means a loss of revenue without any additional benefit. But on the other hand, when you offer discounts, you can level the playing field without setting a low price for your service.
Generally, a new entrant will offer his services at a lower price point for a certain time limit and then increase the price of his offerings. After he increases the price, he will start losing his customers that will (most likely) come back to you. In this situation, the discounts that you have offered can be altered intelligently, so that they work in your favor. For example, you can start offering cross-product discounts. In a cross-product discount, you offer discount on one service which is related to the consumption of another service. This allows you to increase your revenue from one service and get the customers interested in another service that you are offering for free. So, when the free period ends and the customer is hooked, you start making revenue from the other service that customer was not using before the discount was offered. A win-win situation for you and your customers! And, a great way to beat the competition; isn’t it?
Partner with the Best Telecom Billing Companies for Beating the Competition
Most telecom companies are circumspect about moving to a new telecom billing system as they are unsure if it will work with their older applications and equipment. However, there are many telecom billing companies like Vcare that offer cutting-edge software solutions that not only address the requirement of the future but also work with older systems. Associating with such a company gives you access to the best telecom billing systems and lets you make the most of discount offers.