This is a really interesting question. Managing by margin has been an often cited request by carriers as they look to improve/simplify the way they “manage” their voice business. In theory, carriers would like to create a business policy that would result in the network selecting and routing calls to the select terminators that would yield the margin necessary. Sounds simple right? Well, the issue is what happens if you set the margin threshold too high and all calls get blocked!!!!
But this idea of managing by margin % is still appealing. So, here’s what we at GCS did, with the help of some of our customers. We thought through what the purpose of this request was, how it would be used and what we would need to build it as a capability within the system to make it happen.
The result of this is our new margin % assurance capability. This capability basically looks at all your traffic to a particular destination and looks to manage the overall margin. Not on a call-by-call basis, but at the total revenue/total cost “macro” level. So, for example, our customers can set margin % thresholds at 5, 6, 7, 10, 15 or 20% levels. Our solution will look across the entire supplier base and the entire origination base and aggregate the volume of calls, the volume of dollars of revenue, and the volume of dollars for cost. It will then pick and choose suppliers based on managing to that margin dollar level. Pretty neat when you think about it (and we spent a lot of time thinking about it). Now our customers can manage destinations from a different business perspective. Each destination can be viewed as a product with its own unique “P&L”. Its own revenues and its own costs.
A pretty cool feature that we built to help our customers invent new ways to think about managing their voice business.
Have a great day -- Ani