A company's valuation is a crucial element that indicates its value within its market. For internet providers, this translates into how the company is perceived by its customers and investors, as well as how it is evaluated in mergers and acquisitions (M&A) situations.
THE management via TR-069 and monitoring Wi-Fi performance have emerged as fundamental tools for improving the services of these providers. Anlix provides these very important functionalities through its solutions Flashbox and Flashboard, respectively.
From now on, we will explore how these solutions directly impact the valuation of an internet provider and why you need to start managing and monitoring your customer base right now.
Benefits of management and monitoring via TR-069 for valuation
The digital age has brought us the ability to manage and monitor devices remotely, ensuring operational efficiency and a superior user experience. The TR-069 protocol stands out as a global standard for this purpose, allowing internet providers unprecedented control over customer devices and their Wi-Fi networks.
1. Operations optimization and customer satisfaction
The TR-069 standard gives providers the ability to remotely manage and configure customer devices such as routers and ONTs. This means less time spent on support calls and fewer technical visits.
Practical example: Suppose a customer is experiencing problems with their connection. Instead of dispatching a technician, which costs time and money, the provider can diagnose and fix the problem remotely, resulting in a faster resolution and a more satisfactory customer experience.
2. Continuous improvement and updates
By adopting the TR-069 protocol, providers have the ability to perform firmware updates remotely, ensuring that customer devices are always up to date and protected against threats.
Practical example: A new type of virtual threat is identified on the market. The provider can quickly update all of its customers' devices, ensuring their security and minimizing risks.
3. Proactive Wi-Fi Monitoring
Monitor clients' Wi-Fi network allows providers to identify and resolve problems before the customer even notices and makes a complaint. This translates into a better user experience and, consequently, greater customer loyalty.
Practical example: A monitoring program like Flashboard identifies a drop in weekly performance of a customer's Wi-Fi. Before the customer makes a complaint about the poor performance of their internet, the provider gets in touch and proposes a solution, such as installing an additional point or even router repositioning, demonstrating proactivity and care for the customer experience.
4. Impact on valuation in M&A scenarios
A provider's valuation in M&A scenarios is not just a measure of current value, but a projection of its future revenue and profit potential. The use of management, automation, monitoring and analysis tools can mean greater revenue stability and a reduction in operational costs.
To illustrate, let's imagine two providers: Provider A, which implemented management solutions like Flashbox, and Provider B, which did not. Provider A, thanks to management via TR-069, reduced its support calls by 20%, significantly saving on operational costs. Additionally, customer satisfaction increased, reducing the cancellation rate (churn) in 10%.
Now, when calculating the valuation, let's assume that each client generates R$1,000 in annual revenue. With a customer base of 10,000, this translates to R$10 million per year. Reducing the churn At 10%, Provider A can save an additional revenue of R$1 million annually. Provider B, without management and monitoring, does not have this advantage and may even face a drop in revenue due to dissatisfaction and cancellations.
Given a revenue-based valuation multiple of, say, 5 times, Provider A would have an additional R$5 million in its valuation just by reducing the churn. This is without taking into account the savings in operational costs and other benefits that management and monitoring bring to the operation.
Management via TR-069 and Wi-Fi monitoring are not just technological tools; These are strategic solutions that raise an internet provider’s level of service. In an increasingly competitive market, these tools can be the difference between an average valuation and a premium valuation in M&A scenarios, in addition to ensuring a more satisfied and loyal customer base. What are you waiting for to implement in your base?
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