Could a small cohort of customers be costing you millions in profits? Telecoms companies must protect their revenues by focusing their energies on seeking out profitable subscribers. How can CSPs refocus their attention away from value-destroying customers and towards the money makers?
In another sign of the broken state of telecoms pricing, one in five subscribers are “value-destroyers”, according to a new report from Sagacity, creating a “multi-million pound revenue leak” for telcos every year.
While roughly 80% of new customers are profitable, with the top quartile of these estimated to bring in over 65% of profits, around 20% of new customers are costing 40% of profits through a “high cost to serve, high cost of acquisition, and high churn rate.”
Cerillion plc (LON:CER) is a leading provider of billing, charging and customer management systems with more than 20 years’ experience delivering its solutions across a broad range of industries including the telecommunications, finance, utilities and transportation sectors.