Dealer Commission Management

Dealer networks form an integral part of the growth strategy for Communication Service Providers (CSPs), through customer acquisition to expand market share, increased ARPU, and improved penetration across a service provider’s portfolio.

Dealer commission costs can represent upwards of 15% of the provider’s cost of revenue that, without effective and accurate management, can have a profound impact on a CSP’s bottom line. Other factors that can drive cost and complexity include:

  • The pace of new product and rate plan introduction
  • Continuous customer discount and incentive programs
  • Continuous changes to commission rules
  • Monthly dealer incentives program
  • Layered commission structure based on dealer hierarchies
  • Difficult to manage termination fees and follow-on commission claw-backs
  • Trailing usage commissions
  • Customer contact via multiple channels
  • Heightened level of fraud as businesses and individuals are under increased financial pressure

Dealer Commission Management enables CSPs to maximize the cash value of dealers by providing a rigorous assurance layer – independent and transparent rating and calculation – that addresses the combined risk of a complex process and any fragility within the commission system, and also enables the CSP to rapidly detect dealer fraud.

The solution is quick to implement, visual-based for ease of use, and leverages the Lavastorm adaptive analytics methodology to ensure that analytic processes are configured and run for maximum business value.

Advantages Benefits
Ability to provide near real-time usage-based BI insights can help trigger programs to maximize CSP and dealer revenues Maximize dealer profitability
Detects dealer commission fraud, including acquisition risk, such as subsidy abuse, commission risk, such as altering SPIF credits and operations risk, such as claiming multiple equipment failures Prevent dealer fraud
Ability to detect discrepancies as part of a root cause analysis, minimizing dealer errors that flow downstream to billing and customer care Reduce errors and the cost of dealer management

Increase dealer value and prevent fraud through dealer commission management