Slide 0WELCOME
• Module for the Topic: Revenue Assurance
• Eligibility: Those who have got the Upgradation from E2 to
E3.
• This presentation is last updated on 15-3-2011.
• You can also visit the Digital library of BSNL to see this topic.
For internal circulation of BSNL onlyFor internal circulation of BSNL only
REVENUE ASSURANCE
• This is a presentation for the E2-E3 Core Module for the
Topic:. REVENUE ASSURANCE
• Eligibility: Those who have got the Upgradation from E2 to
E3
• This presentation is last updated on 19-3-2011.
• You can also visit the Digital library of BSNL to see this topic.
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NEED FOR REVENUE ASSURANCE
• TO IDENTIFY HOW REVENUES ARE BEING MISSED
• IDENTIFY AREAS OF LEAKAGE AND PLUG THEM.
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Components of Revenue Assurance
• Service Assurance
• Billing Assurance
• Collecting Assurance
• Reporting Assurance
Service Assurance
honoured promptly.
• Regular maintenance of overhead lines, underground
cables and A&P to ensure efficient working of the system
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For internal circulation of BSNL only
• Serve the untapped rural market where other operators are yet to penetrate.
• Make all out efforts to attract competitors customers back to BSNL.
• Inform the customers – how you are better than the competitor by distributing pamphlets / Fliers through local dailies./CSR/CSC, bills etc
Service Assurance
Billing Assurance
• We should ensure that all billable events are billed accurately.
• Unaddressed Bills to be reduced should not be repeated for the
next cycle.
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Billing Assurance
subsequent bills.
service to be pursued promptly.
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Steps to be taken for early
realization of Bills
1. Ensure that the bills are issued for correct amount.
2. Billing address is correct and complete.
3. Ensure that the bills reach in time.
4. Engage proper reliable source for delivery of bills .
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Steps to be taken for early
realization of Bills
7. Give intimation to customers through IVRS about the dispatch of bills.
8. Give a ringing reminder a few days before the due date.
9. Give another reminder before a day or two to actual disconnection.
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Collection Assurance
• Maintain minimum sundry debtors balance.
• Ensure maximum collections by 6th month.
• Increase the payment options and locations available to the customers.
• Popularize electronic clearing scheme and voluntary deposit scheme.
• Timely disconnection of telephones for non payment of bills.
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Various places of collection
• Telecom centers of BSNL.
• DTOs/CTOs.
Various places of collection
• Payment through Internet via credit card/on line bank
account.
(AP Circle, Karnataka, Kerala).
Pursuit of Recovery after
• Immediate ringing reminder during the incoming facility period.
• Give priority to the customers having huge outstanding.
• Issue default notice preferably in local languages around 45th day of disconnection.
• Issue non-payment closure Advice Note immediately after 90 days of disconnection.
• Finalize the accounts of the defaulting customers and arrive at the net outstanding.
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Pursuit of Recovery after
district magistrate
• Organise reconnection Melas in coordination with exchange authorities for less than 1 year outstanding (Kerala).
• Conduct LBMs / HPCs for write- off of irrecoverable dues.
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Reporting assurance
• TRA is responsible for presenting all the records relating to sundry debtors and sales journal to audit.
• In cash section all collections including deposits are credited to sundry debtors.
• Classification to various revenue and deposit heads will be done by TRA through journal slip by debiting the sundry debtors and crediting various revenue/deposit heads after finalizing sub-ledger.
• Sundry debtors should always show debit balance and it should tally with the actual outstanding.
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For internal circulation of BSNL only
Customer Win back
• On average , firms can lose up to 40% of their customers every year
• Lost customers mean lost revenues and negative word-of-mouth.
• On an average , firms have a 60 to 70% chance of selling to its
current customers again, a 20 to 40% chance of successfully selling
to previous customers and only a 5 to 20% chance of turning
prospects into new customers.
Customer Win back
• Customers defect for various reasons and some customers
are not worth winning back. Through careful segmentation
you can select the most important customers to win back and
develop individualized strategies for each sector of lost
customers.
• Poor service – This includes history of problems with delivery or
service or even a price increase without adequate proper notice.
• Poor handling of a complaint – if a customer does not feel his or her
complaint is not taken seriously or treated with respect, he can
easily move to a competitor.
Most common reasons for customer churn
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Most common reasons for
• Disapproval of changes – you run the risk of losing customers
anytime you change a policy or price or product.
• Feeling taken for granted – Remember that every customer
needs to be “resold” in every transaction.
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Steps to resolve customer dissatisfaction
• Listen – carefully to your customer. • Empathize – with your customer„s concerns. Let him know that you
sincerely care about his problem even if you dont agree with his comments.
• Apologize - even if you are not the cause of problem. When said sincerely, the words „ I am sorry” can diffuse as much as 95% of most peoples anger.
• Resolve - the problem. Let the customer know you are on his side and will do everything you can to help him get the problem resolved.
• Now – is the time to address the problem. The faster a mistake is fixed, the more likely it is that the customer will give your company another chance.
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• When you lose a single customer you do not lose a single order but a
lifetime opportunity of profitability with that individual.
• Further, if by a positive word-of-mouth, he brings just one more
customer to the organization his value to the organization doubles.
• Therefore it is important for all the employees within an organization
to understand the lifetime value of their customers.
• Customers orders per year as well as average order size will
increase the longer a customer remains with a company
Customer life time value
Customer life time value
• Target the right customers – focus not on how many customers you
want to acquire but on how much revenue each potential customer
can generate for your business. Then go after clients and industries
that fit your model and your firms vision and area of expertise.
• Target the high value customers who need little incentive to purchase
, more resistant to the pull of competitor, less price sensitive and
generally more tolerant of occasional lapse of services.
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Customer retention
• Identify the most profitable customers and retain them.
• Retain the customers that have low churn risk and low profit margin
but try to increase their profit margin,
• Example by converting landline customers into broadband
customers.
• Must provide customized services to the high value customers which
makes it difficult for the customer to defect.
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Strategies for saving a customer who is about
to defect • Listen to your customers – while listening, identify what triggered
their dissatisfaction. It takes considerable skill and training to handle irate customers tactfully.
• Propose – ask the customers what they need from you to resolve the problem, and to keep them as a customer.
• Meet the customer demands if it is cost effective for the company.
• If what your customer demands is more than the customers estimated value to your company, you may not be able to save the customer.
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Long term strategy
• Play second fiddle – if your past relationship with the customer has
been good, make a pitch for even a portion of their business. Often
this kind of arrangement is accepted immediately and it leaves you
as an established operator.
• Ask for another meeting – if you are turned down for even a portion
of their business, ask if they would reconsider in a few months time
even if this overture is rejected ask for permission to stay in touch.
Courtesy is very effective.
Long term strategy
• When approaching a former customer your goal is showing
that your product offers a better value than anything from a
competitor.
• You need to create a message that is relevant n personal
• Key points in any re-approach are
• Acknowledge their past business.
Long term strategy
• Point out improvements and changes that have been made since
the customer left.
• Prove to the customer that your products and services offer
value he or she could not find elsewhere.
• Make it easy for them to switch over.
• Possibly include a financial incentive for switching back.
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For internal circulation of BSNL only