Let’s get ready to RuMMMBBBBLE!!

Last week, I attended Light Reading’s event, The Future of Cable Business Services, in New York. One message was clear for 2015: Competition. Cable providers’ niche has been small business and they are going up market to medium and enterprise business. Telcos’ bread and butter has been large enterprises and they are going after small business. They will collide and the competition will be fierce over the coming years for Communication Service Providers (CSPs).

I’ve written several blogs recently on the ways CSPs can win more B2B business. I’ve discussed that process standardization coupled with more innovative solutions will enable winning proposals. You may be asking yourself, “How do I create business case for improving my order capture process?” So let’s look at hypothetical example of improving a CSPs win rate by just 1%.

Let’s use a fictional CSP called “U+ Comms”. U+ Comms has an average of 100,000 opportunities per month. They win 20% of the deals, or 20,000 wins per month. Each order is on average of $1,500 per month in revenue, with 20% margin, and an average contract life of 36 months. Using a standard discount rate, the lifetime value (LTV) of each order is $9,032.

So... if U+ Comms is just 1% better at closing deals, then they would close 200 more deals per month. What’s that worth? It’s significant. Just 200 more deals per month are worth more than $21 million annually.

Here’s a simple “Back of the Napkin” calculator of U+ Comms business case:

Now your mileage may vary. For small businesses you may have more deals at a lower value and large enterprises would have fewer deals and more revenue. I also believe that CSPs can achieve better results than just a 1% improvement. So I urge you to think about the following:

  • How many more deals could you win if you had end to end visibility of the proposal and could deliver significantly faster than your competitors?
  • How many more deals could you win if your sales team were more productive to focus on customer’s business challenges?
  • How many more deals could you win if you could lower prices by lowering sales costs through process standardization and automation?

Don’t take my word for it. Watch this 2 minute video on learn how Telecom Italia improved their order capture process for the most valuable customers. Goffredo Sdrubolini, Head of Customer Care Business, says, “With Pega we are able to reduce to reduce contract lifecycle and build a dynamic platform that adapts to the changes of the customer”.