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PROFITABILITY
Up until recently operators have primarily focused on growth and revenue. The focus has now shifted to profit, the underlying business fundamental. It has been said that ARPU (Average Revenue Per User) is dead and APPU (Average Profit Per User) is king. Indeed rather than APPU the true focus should be on PPU (Profit Per User).
Analytical Models has been consulting on and around customer profitability and customer lifetime value (historical and projected) and have several tools for assessing customer profitability. Our financial expertise and user interface skills and specialist software knowledge was called upon by the Securities Institute of Australia in developing the first Online DCF course.
Understanding customer profitability on a per subscriber level allows operators to properly allocate subsidies to match customer value instead of allocating as an average. The savings from doing so can improve the cash position of an operator by millions and millions of dollars.
Our profitability tools have been used in a variety of applications …
o Customer acquisition
o Customer retention (re-subsidisation)
o Competitive profitability analysis
o Channel profitability analysis
o Campaign profitability analysis; and
o Customer lifetime value
These tools are being integrated with our tariffing software to provide a comprehensive solution allowing you to do your competitive benchmarking, tariff setting, profitability analysis, revenue impact analysis, channel profitability and lifetime value in one application.
© 2003-2008 Analytical Models Pty Limited. Privacy information.