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The world of technology is constantly evolving. As new technologies are developed and old ones become obsolete, companies must find ways to stay competitive and keep up with the latest trends.

With rapid changes in technology, Communication service providers must continuously invest in new technologies, which leads to an increase in profitability. With falling Average revenue per user (ARPU) along with the shift of customer preferences towards massive data consumption, products are depleting the margins of the CSP and require process correction and deep insights.

The following factors are key in the requirement of Margin Assurance Analytics for any CSP.

Poorly designed products and their pricing: – Difficult to correlate the costs vs profit of any product, Plan, Subscriber, or segment of subscribers making it difficult to find out the profitability of the product, subscriber, plan, etc.

Data in Silos: – Data in silos makes it difficult to calculate all the different cost points, especially when there are minimum cross-functional interactions. This impact the calculation of the correct margins for CSPs.

Unidentifiable Technology costs: – Inability to accurately map the true cost per GB, Erlang, or SMS or bandwidth cost.

Unprofitable Subscribers: – Inability to identify unprofitable customers that consume more resources than they pay for. CSPs should be able to find such subscribers and shift them into products whose pricing matches their resource consumption.

Increase in spend on planning and Capacity optimization: – As CSPs dedicate a significant amount to planning and capacity optimization, they also need to keep an eye on profitability, which is challenging due to limited views into different costs leading to capacity and utilization.

Creation of Complex Offerings to Subscribers: – CSPs are launching products that are a mix of multiple services, products, and technologies, resulting in the creation of complex cost models. Moreover, data for these complex offerings are in silos and cross-functional resulting in a lack of full visibility of all the costs associated.

In the current situation, how do Communication service providers get faster visibility on their margins and expect profitable growth despite depleting revenues from traditional services and stiff competition from digital service providers?

Pinnacle’s AI-powered Margin Assurance Analytics solutions, CSPs can accurately account for all costs like operation, customer support, Product, and services in one place. It helps Communication Service Providers accurately view all the cost centers and thereby assisting in improving decision-making abilities leading to an increase in profitability margins.

For businesses who wish to take advantage of this technology, there is one key step that you must take: You must ensure that your system is equipped with Pinnacle’s margin assurance analytics (MAA) solution. This type of software allows you to analyze your data in order to identify potential problems before they occur, allowing your business to avoid losses and keep itself alive in today’s competitive market.

Pinnacle’s powerful Margin Assurance Platform offers the following advantages:

  1. Ability to ingest data from multiple sources through APIs in real-time.
  2. Powerful Analytics and automation in real-time to make revenue and margin KPIs available in real-time for decision-makers
  3. View margin trends across regions, products, subscribers, subscriber segments, and product segments across different time granularities.
  4. Visibility and correct identification of the real margins associated with different products, services, bundles, subscribers, subscriber segments, and vendors/partners through monitoring of respective data sources.
  5. Alignment of margins with revenues and costs associated with different products, services, bundles, subscribers, subscriber segments, and vendors/partners.
  6. Calculation of correct margins associate with all the products, services, bundles, subscribers, subscriber segments, and vendors/partners
  7. Know the average margin per customer (AMPU) to identify profitable and non-profitable customers. Identification and verification that negative or low margins on products/customers are not caused by wrong product definition, network problems, or high usage
  8. Micro segment customers based on AMPU and offer targeted campaigns to increase margins
  9. Identify Products/ services with poor margins and leakages. Take informed and profitable decisions.
  10. Rich and Flexible User Interface with Unified view across cross functions for different products, services, bundles, subscribers, subscriber segments, and vendors/partners
  11. Real-time Alerts and notifications to inform if any products, services, bundles, subscribers, or subscriber segments return negative margins.

CSPs adopting Pinnacle’s margin assurance analytic solutions with the above capabilities can expect several benefits. The solution will flag negative margins and execute near real-time validation to identify product profitability. As operational changes take effect, it will support them in shifting from ARPU (average revenue per user) to AMPU (average margin per user) models.  This will help CSPs to optimize the bottom line through automated and real-time margin assurance.

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