Cost and Margin Assurance

Cost & Margin Assurance

Improve business performance and optimize operational profits and the customer experience at a subscriber level

Delivering detailed information based on customer margin analytics

Increased competition in saturated markets, together with the disruption from digital transformation, makes it mandatory for CSPs to refocus from top to bottom-line growth objectives. RAID Cost & Margin Assurance (C&MA) delivers detailed information on service provider margins and profits, delivered through a comprehensive analysis of the full telecom value-chain. RAID Cost & Margin Assurance helps our telecom customers to gain a competitive advantage by obtaining valuable insights about their operations and customers, allowing them to transform from a business focused on average revenue per user (ARPU) to one based on average margin per user (AMPU).
Delivering detailed information based on customer margin analytics

Top 6 Margin Analytics Pitfalls: Why Carriers Need Customer & Margin Assurance

Unidentified customer costs
Inability to identify and address unprofitable customers that consume more resources than they pay for. You need to be able to categorize customers according to their needs and assess ways to profitably serve each of these groups.
High customer acquisition costs
Inability to flag customer buying patterns that can indicate issues with products, competitors or sales teams. Optimize your retail network by analyzing consumer ‘footsteps’ and multi-channel distribution behavior to determine the best way to improve margins.
Inadequate products and pricing
Inability to correlate costs and revenue to fully understand the total cost for each product family, customer segment or individual customer. This makes it nearly impossible to track the profitability of subscribers, services, devices, rate plans, and other entities from a margin point-of-view.
Negative margins due to bad debt recovery
Inability to optimize gross margins due to an increase in debt recovery costs. This typically comes from improperly prioritizing debt collection activities, leading to higher collection costs and reduced cash-flow.
Unknown technology costs
Inaccurate profit margins, due to the inability to determine the true cost of delivering technology - per MB, minute, and SMS. CSPs also need the ability to map costs associated to each data/voice traffic route.
Data silos that hinder margin analytics
It is very difficult and time-consuming for executives and other decision-makers to put an effective cost and margin program in place. One key issue impacting success is a CSP’s ability to resolve the many inevitable data discrepancies that are often spread across multiple sources.

Engineered to audit both customer and service margins

Understanding the structure of the telecommunications value chain requires detailed and complex calculations and an extensive foundation of knowledge and insight. When trying to assess competitiveness and optimize profitability, financial departments can spend an inordinate amount of time collecting data and analyzing macroeconomic trends, cost drivers and the supply/demand of specific assets from disparate sources. The RAID Cost & Margin Assurance module is an interactive tool that allows analysts to explore costs and margins from a per-customer perspective, providing insights into how these areas fluctuate according to different variables along the value chain.
Engineered to audit both customer and service margins

See how Mobileum can help protect & grow your business

Over 750 Telecom companies, in more than 150 countries, are scaling their business with Mobileum solutions.

Prebuilt audit controls for margin analytics

RAID Margin Analytics modules include a set of prebuilt business validations that help analysts to address issues right out-of-the-box. Due to its intuitive graphical modelling interface, RAID’s business validation features enable operators to explicitly define, analyze, execute, audit and maintain a wide variety of rules that map directly to a business’s underlying business logic. Multiple built-in checkpoints can ensure that all issues identified are reported and tracked, providing an all-inclusive view of the risk management process, enabling service providers to rapidly evolve the prevention of revenue leakage on a continuous basis.

Designed for the Telco Industry

RAID, an AI-powered machine learning platform, helps improve decision-making by breaking down silos of data and offering real-time visibility across an entire organization. RAID’s Cost & Margin Assurance module has been designed specifically for the telecom industry and enables you to easily monitor customer value metrics and key relationships in order to maximize profit. Once you have a complete view of your customers from every angle, you can discover valuable segments for smarter targeting and personalization, which will create better engagement opportunities with your customers.

Get the best visual experience

RAID offers a complete range of tools that provide augmented monitoring and measuring capabilities, including a visual KPI designer and business sensors, to improve awareness.
Non-technical users can effortlessly create business metrics and dashboards by accessing easy to use, drag-and-drop features that work on top of the platform’s native business logic layer.
Get the best visual experience

Lowering network costs and improving subscriber margins

The main challenge faced when calculating margins is assigning costs for network elements. It requires an understanding of the type of traffic being transmitted across the network and then the ability to assign costs accordingly. RAID Cost & Margin Assurance delivers a granular view of operational costs associated with network usage and links it with charges for services being delivered. This way, CSPs can maker clearer choices when linking new product releases, assets in use and customer revenue. Additionally, the product provides insights that show how investment options can be separated into independent choices, allowing executive teams to make clearer trade-offs based on a multiyear appraisal of end-to-end costs.

Customer service and its impact on profitability

Customer service organizations are a way for service providers to add value to their business, but running an effective customer service team involves various overhead costs. Some of the most significant expenses are employee wages. CSPs must maintain a balance between the amount of money spent on running their customer service organization and the amount spent on interacting with customers. As part of our cost and margin analytics package, RAID can assist by providing the metrics to create segmented customer engagement plans, based on their value. For example, the lowest value segment can be pushed to digital channels for simple inquiries, while the highest value segment can be served through the call center.
Customer service and its impact on profitability

Machine Learning Workbench

Use RAID’s built-in graphical interface or your preferred data science toolkit to create machine learning models and effortlessly integrate them into RAID’s model repository for advanced data validations and enhanced margin analysis.
By employing RAID’s analytical models, CSPs can uncover customers' needs by having a single and comprehensive view of their data, to identify the most profitable customers and services and leverage this information to develop relevant sales offers and actions.

Mobileum Risk Management Software Portfolio

Discover why Mobileum is the most trusted software vendor by Telecom companies all over the globe to manage their Revenue Assurance activities.

End-to-end Platform for Risk Management

Built from the ground up and completely owned by Mobileum, RAID is a robust platform on which all our risk management products are built. With a range of prebuilt auditing and monitoring packages, built for Revenue Assurance, Fraud Management and Business Assurance, RAID delivers a full-service solution from data collection all the way through to risk detection and traceability of case resolution.
End-to-end Platform for Risk Management

The real cost of sales

CSPs frequently pay incentives to retailers who bring customers onto their networks. They also often subsidize the cost of devices, especially for contract customers. Losing these customers can result in a steep decline in profits. This makes it mandatory for service providers to closely monitor customer acquisition and retention costs, since it can represent up to twenty percent of their annual operating costs. Operating costs and the ability to retain existing customers impacts a telecom company’s profitability. RAID delivers powerful customer acquisition cost (CAC) and retention analytics by comparing the total sales and marketing expenses associated with gaining a new customer, and the incremental increase in the gross profit associated with those new customers during a given period of time.
The real cost of sales

Cost and margin analytics in hybrid NFV environments

Network Function Virtualization (NFV) allows network operators to reduce their dependence on single-purpose hardware appliances by taking the functions that were previously built into these expensive pieces of equipment and putting them into software that runs on industry-standard servers, network, and storage platforms. This provides a unique opportunity for real-time analysis of information from networks, systems and applications, helping to achieve a more detailed analysis of costs and margins. The ingestion of additional, non-network related information – such as application resource usage, virtual machine resource consumption, and other metrics - can result in a more robust and coherent cost and margin analytics process that makes decisions based not only on network traffic, but also by taking into account the whole environment.

The real impact of debt recovery costs

Accounts Receivable teams can have a huge impact on customer and service profitability. Collections activity can influence the severity of each loss and, in the best case, return accounts to order. This impacts the bottom line in two ways: the amount recovered, and the direct cost of collections. When recovering debts, you want to focus your efforts on those that will be most profitable to the business. RAID Cost and Margin Analytics delivers insights that can be put into action; creating an individualized collections process to help recover bad debt while preserving long-term customer relationships and profitability.
The real impact of debt recovery costs

Discover our extended set of solutions for Operational Risk Assurance

Customer Collections Assurance
Audit the credit scoring process, monitor dunning strategies and external collection agencies performance.
Cost & Margin Assurance
Gain a competitive advantage by obtaining valuable insights about operations and customers, allowing you to transform from a business focused on average revenue per user (ARPU) to one based on average margin per user (AMPU).
Mobile Money
Monitor the entire MoMo value chain, and ensure accuracy of charges, taxes, fees and commissions.

One platform that cuts the data silos between all telecom applications for limitless insights

Digital business depends on a flexible application portfolio that enables delightful digital experiences, that supports new ways of doing business, and that makes the most of new technologies.