How do my customer segments really behave and what

drives this behaviour (unpacking effective rates, MoU’s,

ARPU’s)?

How do the channels influence my sales?

What is the true return on my marketing spend?

What do my customer movements really look like? Are we

acquiring low, churning high and how is this changing with

time?

Is the current sales mix geared for optimal revenue gener-

ation?

To answer these questions, information needed to be readily

available and organised in an intuitive manner so that opera-

tional and strategic decision making could be as efficient as

possible. Furthermore, managers required a solution that would

deliver the answers to their problems, enabling them to under-

stand the impact of possible initiatives and drive action from it.

Growing Revenue In Challenging Market Conditions

The client is one of the largest independent service provid-

ers to the South African mobile telecommunications sector.

They operate in both the Consumer and Enterprise space,

offering a wide array of products that span all of the mobile

operators.

Current market conditions, specifically within a consumer

context, are extremely competitive. Aside from regulatory

pressures enforcing lower mobile termination rates (MTR’s),

the struggle for market share has intensified due to recent

price pressures introduced by some of the smaller opera-

tors. Managers are therefore faced with the duel threat of

revenue erosion and increasing costs, making it increasingly

difficult to retain value for shareholders.

The natural reaction is to turn the organisation’s attention to

cost saving initiatives and drive operational efficiencies as

much as possible. The challenge here however is that the

revenue side of the equation (i.e. sales, quality of custom-

ers, spend, etc.) loses focus in the process and cost effi-

ciencies can result to revenue atrophy. Therefore, manag-

ers are now looking to understand the dynamics that exist

between Markets, Product, Channels and Customers, iden-

tifying the greatest causality to threats / opportunities and

driving action that grows revenues with deliberate precision.

Key Questions That Inform Decisions and Drive Action

in order to address the questions that would drive action,

the client needed to drill down to deeper levels of infor-

mation than was traditionally reported. Typical questions

Management needed to answer included:

What are the greatest contributors to my Revenue

line, and how has that been changing over time (by

segment, region, channel, payment method etc.)?

Where does my greatest opportunity lie, in terms of

both current revenue potential and gaps for new prod-

ucts?

Revenue Performance: Managing revenues in a turbulent market

Page 2

The analysis also catered for the complexity introduced

by the different blends of Voice, Data and Messaging,

specifically insolating the most sensitive areas of con-

cern, or success.

Impact of new products and promotions effected by the

mobile operators (or even by the client) were easily iden-

tified using the time series analysis charts, and the result-

ing revenue dilution or uplift is readily quantifiable.

Managers were able to effectively delegate action items

to the relevant teams as easy and intuitive access was

provisioned for each user; either through a client server

version (for super users who would like to run scenarios

on larger models) or on light application versions, suita-

ble for those requiring quick informative insights and re-

porting. And thanks to Qerent’s proven data adapter

functionality, models are refreshed and updated at the

click of a button.

Given the best practices and IP that we have devel-

oped over many similar implementations, we were able

to leverage our predefined templates from the Qerent

modelling solution. Not only did this allow for a rapid

turnaround time, it provided us the ideal platform to

quickly customise the solution to meet the client’s spe-

cific needs.

Apart from all the dynamic and interactive charts and

graphs inherent to the end solution, our industry lead-

ing analytics tools were available on demand, allowing

managers to quickly and easily isolate key drivers and

implement any required action.

The design and layout of the solution enabled key driv-

ers such as ARPUS’s, effective rates, specific con-

sumption (frequency and duration of events), and

churn rates to be viewed as low as a tariff level. The

built-in attribution diagnostic reporting tool quickly iso-

lated and quantified key changes affecting business

performance over the period under review.

The Solution: Leading Analytical Tools to Easily Identify Key

Drivers and Illuminate a Path To Action

Seeding & Harvesting Revenue Growth

1. The Product Management / BI teams turnaround time in answering business critical ques-

tions was substantially reduced, allowing more time to focus on true product management

and allowing executives the rare luxury of possessing these insights ahead of critical dead-

lines

2. By understanding the key drivers behind the business’s performance, managers were able

to quickly divert their attention to focusing on the most relevant and key problem areas.

3. Through the better understanding of the sales mix, managers were able to optimise their

product and portfolio structures to better suit the market and drive stronger revenue growth

compared to competitors.

4. By integrating the Qerent solution with scheduled management forums, executives noted a

marked increase in team member’s levels of productivity and accountability. As a result

new or improved product ideas were driven from the insights discussed in the forums.

5. All this was achieved while reducing the time spent on creating reports by over 50% of key

personnel.

Key Outcomes

Page 3

Contact Us:

BSC provides leading analytical and modelling ser-vices to help organisations grow their revenues with deliberate precision.

Email us today to show you how we can do the same for your business:

Email: info@BSCglobal.com

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