By Kirill Rechter
January 8, 2016
With competition set to increase in 2016 across many emerging markets, differentiating offerings via customer experience and billing will become ever more important, as LogNet’s Kirill Rechter notes…
Which developing or emerging markets (regions/countries) do you cover?
We focus on countries in developing and emerging markets in which competition plays an important factor on the operations and business strategy of service providers.
What are your main hardware and/or services focus areas?
LogNet Billing and our MaxBill solution turn billing, service delivery and customer experience management into competitive advantages that help service providers achieve their strategic objectives and grow their businesses. Our MaxBill solution and Modern Billing strategy enable service providers to manage multiple service environments and offer attractive packages with automated service delivery, accessible customer support and transparent billing.
What are the top market and customer trends that will drive change in your area during 2016, and why?
In developing and emerging markets, competition will continue to grow and new players will continue to enter the market to compete with established service providers for market share. At the same time, profit margins for traditional services will continue to decline. This will force service provider to both improve the attractiveness of their business processes and look for new service opportunities to generate new sources of revenue.
What are the solutions that will make the greatest impact in your area during 2016, and why?
Increased competition will give customers more alternatives to choose from. In order to build competitive advantages, service providers will look to strategically improve their service delivery, billing and customer experience to differentiate their service offers. As a result, modern BSS solutions that facilitate attractive operations with efficient business processes will have the greatest impact on service providers in the coming year.
What changes need to be made to speed up developments and what can hold them back?
In developing and emerging markets, change is traditionally slow and often gradual at best. However, with increasing levels of competition, service providers will need to adapt faster and improve operations to keep customers loyal and attract new business.
At the same time, the use of legacy infrastructure, which cannot adapt rapidly, will become a burden on the ability of incumbent service providers and other established players to compete and expand their businesses. However, we do not expect to see many large scale replacement projects and instead anticipate that service providers will introduce new BSS systems as side-by-side solutions.
Which technologies do you think will be most important in emerging markets in 2016? Please briefly explain why.
In response to these market conditions, service providers will increasingly see their billing operations and service delivery and customer support processes with new strategic importance.
Today, billing is no longer just a functional process to calculate usage and generate invoices. Moving forward, modern billing operations will be leveraged by service providers in competitive markets to improve customer loyalty and attract new subscribers. For instance, improvements to customer satisfaction can be accomplished with efficient billing processes, easy-to-understand invoices and transparent charging methods. We also expect that those service providers that are able to build efficient business processes will promote their billing operations to differentiate their service offerings.
More than this, service providers will consider their billing operations as an essential part of their corporate strategies and as a driver for growth. For instance, the corporate strategy of a service provider may be to reduce prices in order to increase both competitiveness and profit margins. In this situation, the billing operation can then be seen as a strategic profit management system that ensures that services are correctly priced and packaged according to specific customer segments.
Kirill Rechter is the CEO of LogNet Billing.