The Four Mobile Expense Management Pitfalls
Proactive telecoms management always results in the removal of wastage. This might be why you’re not getting it.
The truth is that most telecoms providers are in commercial conflict with their customers’ best interests. The proactive management of telecoms always results in the removal of wastage and overspending – it naturally erodes supplier profits, often from the areas where they make the most hidden profit.
Most organisations, however, are largely unaware of just how far suppliers go to hide excess margin, and how they work to obscure the detail where customers are currently overspending. So how is it even possible for telecoms suppliers to generate as much as 30% excess hidden margin without their customers noticing? Well, for that answer, it’s important to completely understand how businesses inadvertently overspend and how suppliers quietly maximise their margin over the term of a contract.
We break it down into what we call the four mobile expense pitfalls every organisation needs to understand and address, if they want to achieve consistent long-term success with mobile expense and usage management.
A more in-depth insight is available on our website.
Pitfall 1: Inappropriate mobile tariffs and services that aren’t aligned to usage and user profiles
Most organisations simply don’t have a consistent and in-depth insight into how different employees and teams use their mobile services and devices. As a result, often the tariffs and contract terms negotiated aren’t as optimised to real business usage as they could be. What’s more, all too often they simply aren’t flexible enough to adapt to future business changes.
Pitfall 2: Telecoms contracts, tariffs and billing are often complex to fully understand and manage
Many organisations either never completely read, or fully understand, the fine detail of their agreements, let alone visit the “online terms and conditions” that often are associated with contracts. Also, frequently, the people that do read the contracts at negotiation time, (i.e. procurement and legal), have little input in the ongoing management of mobiles. As a result, it’s common for the implications of certain clauses to be missed, or for important information not to be effectively passed on to managers and IT.
Pitfall 3: Wastage and Misuse
Unfortunately for many organisations, their employees are often doing a good job at inadvertently helping their suppliers to maximise profits. Most organisations simply aren’t even 100% sure as to who’s using their mobile services and devices, let alone what they’re using them for. This often results in hidden overspend on usage that can go uncontrolled and unnoticed for months, or even years, not to mention the security risks.
Pitfall 4: Not Understanding the Wholesale Telecoms Market
Most organisations go to market, or renegotiate their telecoms contracts, every two or three years. Did you know, however, that in the wholesale market, prices change on a continuous basis, and normally they go down?
The Four Mobile Expense Pitfalls Summary
Mobile expenses are under constant pressure. However, by addressing just one of these areas you’ll make a considerable impact on your telecoms budget. Address all four, and you’ll be well on your way to releasing 20% or more.
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