Providing customers with a personal touch is fundamental for success in any business. It’s especially true in the hyper-competitive communications service provider (CSP) industry, where personalized services are now integral to service differentiation. As part of larger customer experience management (CEM) strategies, many CSPs are now delivering that personal touch with policy management.

Service providers originally used policy management to prioritize one type of network traffic over another. For instance, voice over Internet protocol traffic was given more bandwidth than e-mail to ensure a quality voice service. As network traffic has exploded, fueled by smartphones, mobile laptops and Web video, policy management is making a comeback.

But this time, CSPs are applying policy management to the subscriber, not just the network. And this solution has become central to many providers’ CEM initiatives, which aim to improve subscribers’ overall service experience.

Several applications for subscriber-focused policy management have emerged, all of which enable more personalized communications services, including:

• Usage cap alerts—Subscribers are notified before they exceed monthly service thresholds, avoiding unexpectedly large bills.
• Sponsored promotions—CSP markets and ensures service (e.g., streaming video) by prioritizing subscribers’ bandwidth.
• Tiered service controls—CSP individualizes service plans with flexible pricing and service bundles.
• User preferences—CSP provides parental controls to limit, monitor and manage communications.

In terms of revenue, it may seem counterproductive for CSPs to notify subscribers before they exceed plan thresholds. But it actually makes better business sense in the long run. Think how easily subscribers can switch service providers and how costly it is to replace them.

CSPs are wise to do everything they can to strengthen subscriber loyalty. And a subscriber happy with his or her service will ultimately generate more revenue.

Policy management can help maximize network efficiencies and defray capital expenditures. As network bandwidth demands increase, CSPs without policy management are forced to invest in faster networks with more capacity. Flat-rate usage plans, meanwhile, make it nearly impossible for revenue to increase with network traffic volume. This spells declining revenue for CSPs.

Subscriber-focused policy management, however, allows CSPs to introduce usage caps, tiered service plans and premium pricing. These services allow subscribers to choose and pay for the service plan they want while moving away from the all-you-can-eat usage plans.

Policy management will be among many important industry issues explored at HP Communications World 2009, in Hamburg, Germany, Dec. 16 to 18. The conference will feature keynote, business and technical sessions focused on a range of communications and media industry issues. Topics include CEM, communications as a service, real-time customer insights, Web 2.0 for service innovation, and more. Register for HP Communications World 2009.

On Thursday, Dec. 17, HP’s Patty Lewis will discuss dynamic policy management and how it can help monetize mobile networks. Her talk will offer insight into how policy management can improve subscriber experience, optimize network usage and enable new business models. See the complete HP Communications World 2009 agenda.

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