Bills are an indispensable part of any business transaction.
They are perhaps the most regular and important communication between service
providers and their customers. For service provider, they are the culmination of
their revenue objectives. For customers, they form one of the prime bases for
the evaluation of service expectations.
Ironically, in the Indian telecom industry, bills are often
confusing, and generate more questions than answers. It is important to
understand the business objectives and customer expectations that revolve round
bills and the way they can be mapped to each other (See Figure).
A clear understanding of such objectives and expectations
makes the continuous tuning of the billing processes and practices highly
imperative. This becomes more crucial in the telecommunications industry where
the billing practices form not just a back-office function. These practices and
solutions have significant bearing on the front-office functions of new-product
developments, customer and service activation, and order management. Any lacunae
in billing practices can have a direct impact on customer satisfaction and
churn.
In India, billing processes and practices of service
providers are much inferior to those of their more-developed European and US
counterparts. Private operators have started to leverage the technological
advances but still one observes a host of billing inaccuracies and related
customer complaints. Government-run operators lag all the more in billing
management and customer service initiatives.
Let us look at the most common and widespread billing issues and the ways to
make billing practices up to the international mark. Technological advances have
led to the development of enhanced billing solutions that now manage the entire
revenue chain. These solutions can be leveraged to implement enhanced billing
practices and improve customer
satisfaction.
Be Accurate
Bills must be accurate. The revenue life cycle in telecom involves multiple
interfaces across different processes. Ensuring the completeness and accuracy of
billing requires measures that instill process-level and end-to-end controls.
Duplicate calls, non-billable calls, local calls charged on toll-rates or wrong
application of rate plans are all very common examples of inaccuracy. All
charges that have been levied on the customer must be adequately explained.
| Practice
1 |
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The following controls would help achieve billing
completeness and accuracy:
-
End-to-end control over call data records (CDRs)
through mediation, rating and invoicing processes
- Periodic review of rate tables: install access
controls over rate tables and supplement them with systems that
generate pre-defined alerts and messages whenever rate tables are
modified
- Periodic review of non-billable and unbilled
items: the process should automatically highlight these items
- Re-rate and review invoices for accuracy
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| Practice 2 |
| Verify invoice totals before bills are sent: pass the total
through a historical trend manager and re-visit invoices falling out of
line |
|
Keep no Ambiguity
Bills must be clear and should provide information on calls and usage in a
form understandable and acceptable to the customer. It is very important that
bills provide the complete information about various types of charges, rate
plans subscribed and payment adjustments in an unambiguous manner. Further,
customer service representatives (CSRs) should also have the complete
information about components of bills and other available options.
| Practice 3 |
| Information on usage, supplemental charges and rate plans
must be mentioned on invoices with the necessary supporting documentation |
|
Deliver on Time
Service providers should ensure that bills are delivered on time and in an
expected manner (mail, e-mail or fax). Charging process is delayed very often,
especially in case of new service subscriptions and changes in rate plans.
Conventional billing systems and processes were not equipped to consider such
changes in a billing cycle. Such delays increase the incidence of bad debts and
also lead to considerable customer disdain. Further, the customer should never
be penalized for delays
| Practice 4 |
| Distribute customers across different billing cycles that
end on different dates in a month. This would reduce the pressure on
processes |
| Practice 5 |
| Instill controls in the system to ensure that work orders
are executed before the bill-run and customer account information has been
suitably updated for the billing process to access the current information |
|
.Resolve Disputes Quickly
Billing errors crop up in spite of precautions and systems.
Data entry errors, incorrect postings or inaccurate data extraction can cause
such errors. These lead to customer complaints. When a customer calls to seek a
clarification or correction, it is important that all queries are satisfactorily
resolved in least time. This involves a significant level of interaction between
billing and customer care functions.
At times, service provider systems are not integrated to access on-line
information and remedy the problem. Even in cases they can access the
information, they may be unable to update the record or correct the problem. As
a result, CSRs can often be seen fumbling over queries on the roaming usage or
data charges for SMS.
| Practice 6 |
| Ensure customer convenience for resolving billing problems.
Workflow-based customer care systems should be integrated with billing
systems to assist customer support personnel in effectively servicing the
customer. The integrated system should ensure that CSRs have a single and
unified view of the customer. |
| Practice 7 |
| Ensure that all customer complaints are logged and tracked
through a work-order management system. All these complaints should be
suitably categorized and related to different business functions. This
will create the critical data to analyze churn. |
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Don’t Let a Problem Re-occur
Whether it is a service complaint or a billing dispute, the
likelihood of a problem occurring increases if it has occurred before. Most
often, problems are repeated because they have not been analyzed properly and
the root cause has not been eliminated, or because corrections have been done at
some places but not at others. Moreover, the growth often outpaces
process-tuning efforts. In developed countries, special revenue assurance
departments keep control over leakage due to errors and in the process keep tab
over repetitive problems. However, such departments are yet to fully evolve in
India.
Increased automation of processes can now ensure that problems arising due to
computational errors or wrong processing logic can be remedied completely.
However, continuous tuning of billing practices for bill accuracy will most
certainly be required to keep them in sync with the growing scale.
| Practice 8 |
|
Use technology to address integration of order
management with billing process. Technology can be leveraged to execute
all orders such as rate-plan change and new service activation, in real
or near-real time.
Use a verification tool when correcting problems to ensure that all
instances of the problem have been set right. In case of service problems,
build checklists to verify points of vulnerability. |
|
Make Customer Interaction Uniform
Till recently, the only way to get your phone repaired was to
personally visit the telephone office and wait for the lineman. This is still
true in certain areas.
Customer needs to have more than one way of reaching the service provider.
Telephone , fax, IVR and personal visit are accepted norms. Now we also have
e-mail, Web, SMS, courier pick-up and toll-free numbers, through which customers can reach the service provider.
Each of these response modes should provide the same information. Hence all
channels of customer interaction should be integrated with the single customer account to
create a uniform and dependable customer-communication system. In addition, each method must be secure and
reliable to guard against loss of communication.
| Practice 9 |
| Integrate all customer interfaces with the central customer
information database to ensure uniform communication |
| Practice 10 |
| Integrate all customer interfaces into a common
customer-service management process so that all calls and complaints are
duly recorded, analyzed and resolved and are available to decision support
systems |
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Offer Value-adds to Corporates
Value-added billing services can help today’s corporate
customers greatly. In particular, they may appreciate:
- Availability of an itemized bill on the Web
- An electronic copy of the bill
- Ability to assign cost codes to phone call usage
- One bill for multiple lines
- A comparison of costs of different plans, and the
flexibility of choosing the best one
- Ability to better manage and understand their calling patterns and their
expense on telephony services
| Practice 11 |
|
Leverage technology to provide personalized attention
to your customers. Provide value-added billing services for better
transparency and visibility.
Customers will also be willing to pay extra for some of the above
services. Billing practices can thus even subsidize the cost of operations |
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Seek Customer Feedback
We talk of the customer all the time, but without his participation. Service
providers should try to engage the customer in a dialog and proactively seek his
or her feedback. Customers know best about their needs and are also willing to
share it. Automated tools can be used to capture and classify their feedback
into meaningful and significant business insights.
| Practice 12 |
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Effectively use bills to solicit customer feedback.
Put small sets of one or two questions on payment slips. Give
information in the invoice about all channels that are used to gather
the feedback
Billing is a strategic tool, which service providers should use to gain
customer confidence and improve customer satisfaction. Needless to say,
this will lead to reduced churn, greater service revenues and improved
business scenario. Needless to say, service providers can look at
maximizing service revenues from their existing customer base, while
working on new customer acquisition. |
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Ankur Lal is the CEO of Infozech
Software./ Ankur Dhingra is a telecom
analyst with the same company.
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