There are varying definitions of tariff optimization. One common reference is the process of achieving a balance between tariff margins and market competitiveness. That is addressed separately in the StreamFlex portfolio and focuses on tariff modelling.
The StreamFlex tariff transparency solution portfolio defines tariff optimization as providing accurate proof to customers of the lowest cost tariff plan billed against their exact usage data. This equally applies to residential, business and corporate customers. The technical complexity to maintain 100% accuracy increases proportionally with each customer segment.
Tariff optimisation therefore is the most effective way to build trust between customer and service provider and is at the core of what tariff transparency delivers. By offering the customer a regular audit of their usage data re-billed against all available tariff variants the customer is offered proof of best value throughout the contract lifecycle. Customers who receive this service renew their service contracts more responsively and in greater numbers and are far less vulnerable to external offers by competitive service providers. The increased security that customers gain from this service also effects the way they use the service with resulting usage increasing significantly.
It is also important to recognise that when a customer elects to change tariff as a result of optimisation they do so to reduce costs. Although there may be some dilution of revenue (ARPU reduction rules can be pre-defined), that is soon offset by increased usage and up-selling opportunities brought about by the goodwill created.
In a service industry where customer mistrust and cynicism is increasingly the norm and switching service provider is the accepted way of reducing cost of service, tariff transparency with tariff optimisation at its core offers service providers and their customers a clear alternative with long-term mutual benefit.
StreamFlex Customer Keeper is the most advanced tariff optimisation solution available on the market today.