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Benchmarking

Revenue Assurance Performance


Implementing Information Framework
Report Author: 
Chryssa Dislis
Senior Manager,
Business Benchmarking
cdislis@tmforum.org

 

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This report is free to subscribers of TM Forum’s benchmarking database and participants in the study. Request more information:  benchmarking@tmforum.org


Synopsis 

Are you operating at the optimal recovery-to-prevention ratio?


Do your Revenue Assurance processes help you achieve optimal performance?


How does your Revenue Assurance function compare to industry peers?


The final report from TM Forum’s Revenue Assurance performance and maturity benchmark study will help you answer questions such as these and focus your improvement efforts on areas that yield the biggest impact. It provides insights into critical Revenue Assurance performance indicators at the strategic, tactical, and operational levels.


About the Revenue Assurance Benchmark
The results of this benchmarking study go beyond measuring performance in terms of recovered revenue. It uses standardized metrics to measure data quality, revenue leakage, and process efficiency. The final report also includes the results from a 53 question qualitative survey which was used to assess the relative maturity of the Revenue Assurance function within each participating enterprise in order to examine the correlation between maturity and performance.

The metrics included in this study come from the standardized Business Metrics maintained by TM Forum. The specific metrics benchmarked include:

Operational Efficiency
Percentage of customers' bills adjusted in a bill cycle
Percentage of billable xDRs suspended/total xDRs
% of pre-paid subscribers who are erroneously identified as post-paid
Percentage of errors on fulfillment orders
Revenue & Margin
Percentage of the recovered revenue value
Percentage of the recoverable revenue value
Percentage of xDRs successfully recovered and billed after recycling
Percentage of recovered and recoverable revenue
Recovered costs as a percentage of revenue
Detected and not recovered costs as a percentage of revenue
Percentage of validated data
Percentage of customers included to reconciliation
Percentage of unbilled and under billed revenue over total revenue
Cost of stranded assets as a percentage of revenue

 

Key Findings
The report identifies many important findings that quantify the relationship between elevated levels of maturity in organization, people, processes, information and tools that support the Revenue Assurance function and the performance metrics.

As an example, the data supports the common hypothesis that organizations with relatively mature Revenue Assurance functions will be more focused on prevention of revenue loss than recovery and therefore improve several critical performance metrics.

See the below figure which clearly demonstrates how at higher levels of maturity, recoverable and recovered revenue and un or under billed revenue are lower because the emphasis is on preventing revenue leakage from occurring in the first place.


RA maturity vs performance, Revenue Assurance Performance Study (Oct 2012)

Another example of the types of conclusions and data included in the final report is the example of the relationship between erroneously identifying pre-paid subscribers as post-paid and un-billed or under billed and recovered/recoverable revenue. See the table below.

Metric Metric Correlation coefficient
% of pre-paid subscribers erroneously identified as post-paid %of the recovered revenue value 0.98
% of pre-paid subscribers erroneously identified as post-paid % of the recoverable revenue value 0.98
% of pre-paid subscribers erroneously identified as post-paid % of xDRs successfully recovered and billed after recycling 0.92
% of pre-paid subscribers erroneously identified as post-paid % of unbilled and under billed revenue over total revenue 0.92
 

What’s in the Report?
This 100 plus page report includes the following:
  • Insight into the demographics of the participants in the benchmark
  • A discussion of the metrics analyzed
  • Summary of the relationship between the maturity of the Revenue Assurance function and the performance metrics
  • A study of the correlation between performance metrics
  • Key findings and recommended actions
  • Insight into the averages for each performance metric and maturity level
  • A breakdown of the responses for each metric and maturity survey question


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