Revenue leakage is defined as customers spending less money with their CSPs than anticipated for the contract.
A Leaking Bucket
Revenue leakage analogies usually involve water, with the concept often compared to a bucket. The bucket is the product or service offered by CSP and Internet data is the water for the CSPs. To fix revenue leakage, CSPs have several options. They can:
* Add more water to the bucket (acquire new customers)
* Get more of new buckets (launch of new product and services)
* Plug the leaks (fix the issues that are causing less revenues)
Understanding the problem
Surprisingly enough, not many CSPs want to admit that they have a problem. If they do, then it provides a helpful barometer for checking the overall operational efficiency.
Activity in the right time frame
The common approach that most CSPs use for managing revenue leakage is monitoring data volume billed and data volume consumed on the WAN side and each of the network nodes. This provides them with an overview, which later is directly compared to accounts billed.
However, if you read it again and understand, this process when implemented would not help in dealing with the losses incurred. We have observed that CSPs that reports data volume leaks after the end of every month have suffered more revenue leakage as compared to others. The reason is pretty simple, with more time-lapse, revenue teams fail to identify causes of the revenue leaks.
The first and ideally the right step is to motivate your revenue assurance team into reporting on a more frequent basis, say daily basis. Moving from a monthly reporting pattern to a daily reporting pattern, will leave little or no room for errors. To make this a routine, all you need is the right set of tools, which are easily accessible.
Information and Revenue
Once you have the accountability check in place it will help in preventing the time entry loss. Time registration is one of the steps for sealing the cracks in revenue management.
And will be writing more on this soon …