The emergence of devops tools and containers equipped the companies to embrace cloud based development. From design to customer on-boarding, the speed of every stage of the product life cycle has increased significantly with minimal human intervention and delays. Telecom product development companies had pain points in the initial days, but now the total ecosystem is moved to the cloud to achieve better and profitable results.
The main reasons for telecom industry to embrace SaaS model include
- Easy to scale the product to multiple markets
- Greater control in product design, rapid building and implementation
- Centralised security monitoring and risk management
- Minimize service disruptions and downtime
- Higher customer retention and loyalty
Taking telecom applications to the cloud have immense advantages, however there are five key fundamental areas which you need to focus while building SaaS applications.
Compatibility with physical devices
Compatibility and agility with existing telecom devices is a challenging aspect to acquire a wider customer base. Your product shall be accessible through the existing system, and benefit the tenant upon integrating with your service. Equipment rental and part-payment is another strategy to reduce the initial investment. With adequate explanation, decision makers will understand the advantages of APIs and SaaS based products in comparison to closed systems with proprietary data formats.
Once you cross the 10K subscriber mark, the revenue and scaling of the product depends majorly on the billing engine. The subscription based billing should be flawless to add new customers, modify the plan, schedule invoices, board resellers and distributors, and handle the sales channels. From the start of development, ensure that your telecom application is flawlessly integrated with your billing engine to maximize the revenue generation.
Pricing your product
Fixed pricing might not suit all telecom products. Successful products choose a mix of Fix Price + Usage-based pricing. Your team should track how customers are using your product and add new features which you can monetize. Add-ons features which can be purchased within a plan is a successful strategy to cross-sell to existing customers. The team should keep on innovating with useful features to increase revenue and profitability.
Evaluating churn rates
Pricing and packaging of the product might not always determine the success of the telecom product. Ultimately, the churn (loss of customers) and plan downgrade (reduction of sales revenue) depends on the utility of the product. The customers should find value in using your product. An annual contract will help you to work along with customers for 12 months to ensure their success. A churn rate of 5 to 15% is acceptable in the industry, however the team should always focus on decreasing the churn by optimizing the features and functionality based on user feedback.
Compliance of International laws
Regulatory and legal issues could destroy a successful product even with a large subscriber base. Plug your team with an experienced legal team at every stage of the product life cycle. You shall not waste resources to build a feature that’s not legally viable. The legality of features depends on geographies, hence you might need to associate with local agencies to comply with your product to a particular region. A law firm within your reach and having branch offices in your customer areas would be a wiser choice.
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