In retail/B2C order management, it is surprising that some Communications Service Providers (CSPs) continue to invest in playing checkers when they should be learning how to play chess.
Most CSPs continue to invest in “operational order management” where the primary focus is cost reduction through automation, reduced order remediation costs, and order throughput performance. This is a great start, but it’s not nearly enough. To effectively succeed in this highly competitive marketplace, CSPs now need to shift their investment strategies to focus on “customer-centric order management” that creates top-line value through faster time to market and the ability to create targeted offers.
We recently surveyed leading CSPs globally regarding their order management needs and strategies, and the results clearly identify a shift toward customer-centric requirements. By far, the largest hurdle to meeting customer needs is that it “takes too much time to implement new offers” (65%). None of the CSPs surveyed indicated that they can respond to competitive offers in less than 1-3 weeks. This lag comes at a huge cost in a finite market. For a typical CSP, we estimate that a 2-week delay in product launch costs millions in lost opportunity.
Further, while operationally-focused CSPs account for operational rules like product eligibility, serviceability, and compatibility as part of their offer criteria, customer-centric leaders are now adding probability of purchase as a critical decision regarding what to offer. The improvement in offer acceptance rates this last metric drives can easily triple the ROI of an Order Management solution.
We hosted a webinar to review our survey results, and discussed the advent of customer-centric order management with Ari Banerjee, a leading industry analyst in this area. During the session, we discussed in depth how leading CSPs are learning to play chess; re-thinking their approach to ordering, and using investment in ordering to drive top-line value versus pure cost reduction.
I hope you’ll join us.