While the wireless and long distance carriers in emerging markets are struggling against massive amounts of competition, the rest of the telcos in the world (incumbent wireline and mature market wireless and long distance companies) are forced to deal with the threat to profits and survival from the insidious erosion of customer spending due to:

• Shifts in customer usage patterns

• Customer substitution of products and services for others

• Decline in customer attraction to product and service offerings

• Economic shifts in customer base

We refer to this major market conditions as ARPU Erosion and Revenue Loss.

Special Challenges - ARPU Erosion & Revenue Loss

The erosion of customer spending on your products and services is much more difficult of a problem to deal with than the more dramatic market situations. With ARPU Erosion, it is very difficult to determine exactly where the problem is and what to do about it.

There is always variance in how customers spend money on telecommunications products and services, which makes the cause of gradual erosion of that revenue stream difficult to pinpoint.

Not only is this problem tough to measure, but it is even more difficult to find the person, group, or discipline that is responsible for helping you to combat it.

ARPU Erosion Solution - Value Proposition

TTA's Telco ARPU Erosion and Revenue Loss Solution provides:

• Complete, exhaustive diagnosis of past and present trends of revenue loss and ARPU decrease

• Comprehensive strategies for effectively addressing ARPU erosion and aggressive proactive strategies for reversing the trends (or adjusting to them)

• Highly accurate forecasts of future (untreated and treated) revenue loss activity

• Comprehensive training of marketing, sales, customer service, and advertising teams to use advanced analytics and best practices techniques in the treatment of ARPU erosion and revenue loss

• Complete organizational and operational overhaul to optimize for revenue loss scenarios

• Complete audit and development of plans for comprehensive ARPU erosion and revenue loss tracking and management systems

• Rightsizing of your organization to complement the adjusted revenue position of the firm or renovation of your marketing plans to compensate for the trends

ARPU Erosion and Revenue Loss Solution

TTA has much experience helping telcos understand and develop effective techniques for managing ARPU erosion and revenue loss. Our approach provides you with a comprehensive view of the situation from all perspectives and the information you need to make the changes in your:

• Strategies

• Marketing programs, campaigns, and promotions

• Pricing strategies

• Channel assignments

• Product alignments

Our ARPU Erosion and Revenue Loss Management Solution makes use of our best practices in all areas of your organizational and operational environment to minimize the damage and maximize the long term benefit.

ARPU Erosion Analytics

TTA has developed an extensive assortment of ARPU Erosion analytics, designed specifically for telcos in mature market situations that are trying to understand, measure, and manage continued erosion of customer spending. Our ARPU erosion analytics include: 

• Exhaustive customer behavior-based segmentation

• Segmentation of customers based on customer value, customer wants & needs, loyalty, channel preferences, media preferences, ARPU erosion and revenue loss likelihood, ARPU erosion and revenue loss reasons, and core telco requirements profile

• Special segmentation of customers by personal product usage, usage atrophy cause/effect analysis

• Market research and detailed qualitative analysis

• Customer Valuation Modeling

• Customer usage trending and prediction modeling

• Customer usage propensity modeling

• Product portfolio impact analysis (including product lifecycle review)

• Cross-elasticity analysis (developing price-switch metrics)

• Financial and market share impact analysis on your most likely ARPU erosion and revenue loss scenarios

• Market econometrics and long term revenue forecasting

The TTA ARPU Erosion Analytics provide you with an unsurpassed perspective on where, when, how, and why customer spending is in decline, and pinpoints areas where addressing those declines will do the most good.

ARPU Erosion and Revenue Loss Disciplines

Complementary to our development of extensive ARPU erosion and revenue loss analytics is our extensive application of best practices analysis in your organization, operations, budgets, and I/T systems. Our comprehensive review of your business disciplines and I/T disciplines provide the second ingredient in the ARPU erosion and revenue loss management strategy that will establish you where you want to be in the marketplace.

Our audit, review, and recommendations in the area of disciplinesinclude:

• Strategy and vision review

• Brand management

• Customer intelligence

• Customer management

• Product management

• Program, campaign, and promotion

• Channel management

• I/T practices, systems, and support

ARPU Erosion and Revenue Loss Strategies

The ultimate objective of our efforts is a comprehensive strategy to realign your entire organization where everyone is addressing the ARPU erosion and revenue loss situation in an efficient and cooperative way. Our recommendations will include:

• Effective pricing positions

• Effective marketing program, campaign, and promotion plans

• Effective realignment of your departments and procedures to address ARPU erosion and revenue loss

• Establishment of ongoing responsibilities for tracking and managing ARPU erosion and revenue loss

• Creation of analytics and metrics to monitor ARPU erosion and revenue loss activity and program effectiveness

The TTA ARPU Erosion and Revenue Loss Solutions present a complete understanding of the ARPU erosion and revenue loss situation, and a comprehensive roadmap for an organization that can deal with it. This complete roadmap can include:

• Computer systems development recommendations, requirements, and implementation plan

• Organizational adjustment recommendations, specifications, and implementation plan

• Training plans for marketing, sales, advertising, and customer service staff

• Best practices coaching for those members of your team earmarked as being your ARPU erosion and revenue loss management experts