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BILLING: Good Practices Pay Much
Providers can multiply service returns and minimize customer grievances by using better billing methods, without too much of an investment
Saturday, December 08, 2001

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

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
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.

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

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

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

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.

Ankur Lal is the CEO of Infozech Software./ Ankur Dhingra is a telecom analyst with the same company.

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