Unlocking Operational Efficiency: A Comprehensive Guide to Calculating MVNO Customer Onboarding Costs

customer onboarding costs

In the realm of Mobile Virtual Network Operators (MVNOs), financial efficiency is the bedrock of success. Customer onboarding, a linchpin in subscriber acquisition, comes with a web of associated costs. Let’s demystify the intricate landscape of customer onboarding expenditures.

  • Contact Center Costs

    • Direct Interaction: Every new subscriber demands assistance, leading to interactions with the contact center. Outsourced contact center services further compound the operational overhead.
    • Call Duration and Cost: The duration of these interactions magnifies costs. Picture this: an average call duration of 10 minutes, multiplied by the contact center’s cost per minute.
  • Infrastructure Outlay:

    • Server and Network Infrastructure: The onboarding process necessitates provisioning server resources and network bandwidth, contributing to infrastructure costs.
    • Device Configuration: Configuring devices mandates network resources and systems, adding to the financial equation.
  • Personnel and Training:

    • Agent Expenses: Hiring, training, and compensating contact center agents inflate operational outlay.
    • Training Resources: Crafting training materials and organizing sessions for agents introduces additional cost factors.
  • Missed Opportunities and Reputational Costs:

    • Subscriber Churn: Complex onboarding can fuel subscriber churn, translating into revenue loss.
    • Missed Revenue: Delays in subscriber activation translate to missed opportunities for revenue generation.

Calculating MVNO customer onboarding costs requires a meticulous approach. Understanding the key parameters:

  • Number of Monthly New Subscribers: This parameter signifies the influx of subscribers joining your MVNO each month.
  • Contact Center Calls per Month: A fraction of these new subscribers may encounter issues during onboarding, prompting them to connect with the contact center for assistance.
  • Contact Center Call Cost per Minute: The monetary value assigned to each minute spent in conversation with a contact center representative.
  • Average Contact Center Call Duration: The average time subscribers spend discussing onboarding concerns with the contact center agents.
  • Percentage of APN-Related Calls: The proportion of calls received by the contact center that revolve around APN configuration matters.
  • Percentage of Device-Related Calls: The percentage of calls attributed to device setup and configuration queries.

Calculating Onboarding Costs

To discern the complete costs of customer onboarding, follow these steps:

Calculate Total Monthly Contact Center Calls
Total Monthly Contact Center Calls = Number of Monthly New Subscribers * Contact Center Calls per Month
Compute Total Monthly Contact Center Call Minutes
Total Monthly Contact Center Call Minutes = Total Monthly Contact Center Calls * Average Contact Center Call Duration
Determine Total Contact Center Costs
Total Contact Center Costs = Total Monthly Contact Center Call Minutes * Contact Center Call Cost per Minute
Breakdown of APN and Device-Related Calls
APN-Related Calls = Total Monthly Contact Center Calls * Percentage of APN-Related Calls
Device-Related Calls = Total Monthly Contact Center Calls * Percentage of Device-Related Calls

Precision in computation is paramount. Consider APN-related costs, for instance. Each APN-related call incurs an expense involving contact center agents, technical support, and infrastructure usage. When the percentage of APN-related calls drops, substantial savings ensue.

Here’s an example: An MVNO serving 10,000 subscribers with 20% of calls being APN-related at an average of 15 minutes per call and $0.20 per minute. Reducing APN-related calls by 20% saves approximately $6,000 monthly. Imagine these magnified across the industry!

Real-World Application: Outsourcing Contact Centers

Many MVNOs opt to outsource their contact center services, leading to a more intricate cost calculation. Imagine MVNO, which handles 20,000 new subscribers each month and outsources its contact center. With 10% of these calls attributed to APN configuration, MVNO’s total contact center costs can rise significantly.

Total Monthly Contact Center Calls
20,000 Subscribers * 0.10 (10% APN-Related Calls) = 2,000 Calls
Total Monthly Contact Center Call Minutes
2,000 Calls * 10 minutes (Average Duration) = 20,000 Minutes
Total Contact Center Costs
20,000 Minutes * $0.50 (Cost per Minute) = $10,000 |

Every single month you will address a cost on contact center, only on APN calls of $10,000. Sum up the cost of other non-APN-related calls. Sum up reputational cost if contact-center operators are not perfectly trained. Sum up….

Using an automated APN setup service pay itself. Compute your savings with our cost savings calculator.

As MVNOs navigate the complex landscape of customer onboarding, the ability to accurately compute onboarding costs is a strategic asset. Outsourcing contact center services, intricate as it may be, adds layers to this calculation. Embracing the innovative prowess of automated APN setup tools can significantly optimize operational efficiency.

Enhanced Efficiency with automated APN setup

Automated APN setup tools introduce an array of benefits that directly impact operational efficiency and cost savings:

  • Streamlined Onboarding: Automated subscriber provisioning and device configuration lead to swift, error-free onboarding, diminishing operational load.
  • Reduced Call Durations: An automated APN setup tool impact is evident in call duration reduction of up to 3-4 minutes at most, trimming costs associated with contact center conversations.
  • Mitigated APN-Related Calls: By addressing APN configuration matters, and performing the right integrations with IT systems, an automated setup tool can slash up to 20% of APN-related calls.

By automating device configuration and simplifying device setup, MVNOs can significantly curtails APN-related calls, trimming operational costs.

In summary, by exploring the monetary benefits that this kind of tools brings, MVNOs can not only streamline their onboarding but also pave the way for substantial cost savings, driving sustainable growth and a superior customer experience. To delve into the details and see how an APN setup tool can elevate your MVNO’s journey, get a free cost savings audit report and discover what you can afford by moving to these services.

Remember, it starts with understanding the intricacies of costs. APNSETTING is your compass in this journey, guiding you towards unparalleled cost-effectiveness. Experience the transformative power of technology in optimizing your MVNO’s operational landscape.

Photo from Pexels by Pavel Danilyuk

Are you interested in excel your customers onboarding experience? Contact us or request a trial of our APN Setup service.