Reports and Revenue Leakage... Inevitable Evils?
The Mobile Entertainment Forum recently indicated that mobile media providers are losing as much as 10 percent of gross revenues due to inconsistent and inaccurate content sales reporting. One out of two respondents stated that they receive as many as 50 different types of reports, so is it surprising that 42 percent stated that their reports are inaccurate?
Mark Denton, director of product management, Valista, questions whether or not this is an inevitable part of the mobile business or whether all members of the value chain can take steps to improve these overwhelming statistics. Many in the mobile industry have become complacent regarding the loss of revenue due to operational inefficiencies and inaccurate reporting and consider this as a cost of business. There is not a magic potion which could improve the efficiency of sales reporting but through automation, particularly in respect to settlement, mobile content providers and operators can minimise errors and synchronise reporting efforts.
Automation of processes is not a new concept for many functional areas. However, as the value chain becomes more complex for the mobile industry, it is imperative that mobile operators and content providers, more away from adding layers of reporting and instead look to standardise reporting.
By automating settlement, the data entry and computation associated with settlement can be streamlined. This significantly reduces the risk of errors and enables an accurate representation of revenue and costs. It becomes increasingly important as merchandising becomes an enabler for mobile content growth and multi-party arrangements become a critical part of business, further complicating the settlement process. In such situations, automated settlement, can improve partner relationships with increased communication and standardised payment reporting.
Operators can also receive the added bonus of increased customer satisfaction. With automation, an operator can add transparency to the purchase process. A customer will be able to understand what, when, and where, they make a purchase. This transparency, also visible to the customer care agent and partners, provides customer care agents with the necessary tools to efficiency handle customer care issues while also improving the partner relationship.
The mobile community should no longer be apathetic towards excessive data reporting and the errors which they generate. Rather, it needs to explore the settlement opportunities which are available to significantly reduce the times and costs of data reporting and improve their relationships with partners and customers.