SLASHING REVENUE LOSS…………WITHOUT CAPITAL COST
In today’s telecommunications industry, operators are constantly dealing with evolving technologies, demanding clients, and the need to continuously roll out new products and services. Consequently, it is hardly surprising that the integrity of systems and revenue streams has tended to be ignored.
In the current climate of increased competition and tumbling prices, revenue maximisation should be seen as a significant profit opportunity for operators. By stopping the cash leaks, they can increase revenues, bolster bottom line profits and improve service delivery.
Average industry estimates indicate that revenue leakage can amount to between 3%-11% of operator revenues. In the worst cases, this may reach 15%. In monetary terms, operators across the world are losing in the region of $35-40 billion dollars every year – dollars that could be financing new initiatives, improving infrastructure and services, or earning bank interest.
According to Herman Heunis, CEO of Swist Group Technologies, the basic causes of revenue leakage are extensive, and can occur at any point in an operator’s revenue generation chain. “Many potential sources of revenue leakage are internally induced, caused by flaws in key policies, processes or systems. Every event that slips through the capture and mediation process represents a revenue loss,” comments Heunis. In addition, fraudulent activities run by external syndicates represent a major area of exposure. Without a dedicated team using an holistic approach across all functions, revenue leakage can only escalate and affect profitability as operators constantly adjust to the changing marketplace.
So what can be done to help operators with this escalating problem?
Swist Group believes it has the answer. Revsure is a sophisticated Revenue Maximisation Service completely focused on combating revenue leakage, and managed as a BPO (Business Process Outsource) by Swist Group. It has invested in the best technology; people, infrastructure and processes, and uses an holistic group of strategies designed to secure revenues, increase profitability and strengthen corporate integrity.
Heunis outlined the three major features of Revsure, “It ensures the efficient capture of all revenue to which an operator is entitled for the services it provides; it deploys both proactive and reactive assurance activities, which repair past problems and help secure the future; and it improves the integrity of financial reporting, delivering results that improve company credibility with customers and investors.”
Revsure is able to identify leakage across all functions. Tools and processes are forged into one strategic chain, instead of being viewed as separate initiatives. This creates a synergy that is essential for effective revenue maximisation.
There is no initial outlay and clients do not need to invest in additional systems and human resources. Nor do they need to pay onerous monthly retainers, expensive transaction-based charges, or pay-as-you-grow licence fees.
The potential for revenue loss is calculated by means of risk assessment, and if the risk of revenue loss proves to be real, the Revsure team will commit to the engagement. Fees are based on a modest percentage of identified leakage, payable when results are delivered. Not only is revenue leakage curtailed and billing data more accurate, but the operator can focus on core, revenue-generating business activities and dispense with growing technological and administrative burdens.