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The Bottom Line

2. Proactive management of the quality of resolution, rather than losing precious hours customer service against SLAs ensures in cross-departmental meetings simply trying that commitments to business customers to find the responsible party. The efforts and are met, and reduces SLA penalties. costs currently spent firefighting can result in

bottom-line savings, or more likely, can be re-

Keeping more customer interactions au- applied to strategic IT initiatives that further
tomated also enables CSPs to rapidly scale enhance technology capabilities.
customer service around fast-growing areas
of their business, like VOIP, IPTV, and other When Numbers Speak
converged multimedia services. While each CSP’s situation is different, there
are concrete economic and qualitative busi-

IT Productivity Gains (table 3 on p. 14) ness benefits from enhanced performance

Application performance management tools of subscriber self-service applications and give IT organizations unprecedented visibil- infrastructure. A more available, better- ity and control for the complete application performing self-service environment increas- ecosystem. Instead of waiting for issues to es the number of revenue-generating transac- arise, IT staff can see detailed, real-time te- tions and reduces customer service and SLA lemetry of application behavior and address costs. Even for smaller CSPs, the financial threats early. In addition, they are able to return on an investment into a robust applica- immediately isolate issues that do arise. Ap- tion performance management solution can plication owners empowered with data about run into many millions of dollars, as illustrated the problem’s root cause can focus on issue by our sample calculation. g

 

Inputs

Assumptions Benefits

Expected

Revenue-generating transactions/hour

Average value per transaction

Annual downtime (99% availability)

Transactions lost due to outages

Annual hours of poor portal response (94% performance)

Percent transactions timed out/abandoned due to poor performance Transactions lost due to poor performance

Value of lost transactions

425 $35 95 hours 40,000 570 hours 25% 60,000 $3,555,000

Transactions saved from reduced outages and performance issues Transactions saved from faster issue resolution

75,500

Value of All Saved Transactions

15,000 $3,200,000

Percent of customers defecting due to poor ordering experience Annual lost new consumer subscriptions due to outages Percent of customers who abandon transaction if portal is slow Annual lost new subscriptions due to poor performance Average annual revenue per subscriber (consumer)

20% 905 5%

1,400 $1,800

Additional customers kept/acquired

Annual revenue from customers retained

Total Revenue Impact

1,800 $3,240,000 $6,440,000

Transaction types: Core service activation, equipment purchase and upgrades, data service activation and usage