Case Study: Billing System Migration

Challenge

Optus had outgrown their billing system and after using it for 15 years it was starting to burst at the seams.  However with millions of customers migrating customers from one billing system to another is no simple project.  There were thousands of legacy plans many with only a handful of customers.  These plans had a wide range of features across all the promotions run over this time, for example, free weekend calls to landlines, free intra-account calls and hundreds of other variations.  Optus wished to rationalise the number of plans in the new billing system but realised that if customers were put on a new plan that increased their bill significantly then they would likely lose the majority of these customers.

Solution

Engage a data migration and analytics specialist.  We analysed the usage patterns to understand what promotions were actually being used by customers, whether those promotions could in fact be covered by another promotion to allow us to understand what plan features were actually being used by customers.  An indicative suite of plans was then developed that met the customer requirements and when overlaid with the customer usage we were looking for three aspects i) revenue impact – we didn’t want anyone to go through bill shock as well as ii) revenue erosion – we didn’t want to wipe out the revenue from these customers and iii) coverage – we wanted to cover as many customers as possible.

Outcome

Analysis of actual usage patterns and plan features allowed us to reduce the thousands of plans to less than a hundred plans.  Customers were impressed that they could do a side-by-side comparison of the features of their current and new plan through a mini-portal we designed for them.  The result was that calls into the call centre were a fraction of what was anticipated.  More customers migrated to the new plans than the business expected and due to the careful design and tuning of the new plans revenue erosion was less than expected.

 

Billing System Migration