Appledore Research Confirms: CSPs Need Telco-Specific CPQ Systems

Whether they’ve been in business for months or decades, all communication service providers (CSPs) face unique, evolving challenges. Telco customers today—both enterprise and individual—expect a tailored array of plans and subscription options, lightning-fast connections and impeccably maintained service.

However, it isn’t just about the plans and what is being configured. CSPs also need to navigate complex environments with their systems, processes and technology ecosystems. A new survey from Appledore Research has found which of these challenges are most pressing for CSPs and how their configure, price, quote (CPQ) systems are under-delivering.

Several years ago, forward-thinking CSPs adopted early, generic CPQs but quickly found these off-the-shelf solutions didn’t meet telcos’ specific needs. As capability gaps emerged, CSPs learned the unique complexities of the telco industry were incompatible with the available offerings. And Appledore’s study bears that out: 85% of the survey respondents confirmed that their existing CPQ systems only meet less than 75% of their requirements.

But it doesn’t have to be this way. While Appledore’s research found many key areas where generic CPQ systems fall short, it also determined that certain CPQs have what it takes to support telcos. Read more to learn what CSPs should look for in future-proof CPQ solutions.

The Data Doesn’t Lie: Appledore Identifies Critical Shortcomings

Current CPQ systems are falling short for CSPs in several key areas. One primary issue Appledore’s research identified is catalog-driven ordering, which relies heavily on having access to a real-time synchronized catalog that “serves as a single source of truth for all product and service offerings,” the report reads. And while catalog-driven ordering is the engine of modern CPQ systems, many CSPs have multiple catalogs from different vendors with various restrictions, making it difficult to establish a seamless catalog-driven ordering process. In fact, 44% of surveyed participants cited incomplete catalogs as a significant concern.

When it comes to automation, the order-to-fulfillment leg of the process fares slightly better than the quote-to-order leg. According to the survey, 54% of respondents can automate at least 25% of their orders to fulfillment, compared to 46% who can automate that share of their quotes to orders. This shows that while there’s been some progress in automation, a considerable gap still exists for most CPQ systems.

3 More Ways Generic CPQ Systems Aren’t Cutting It for Telcos

Aside from the challenges with catalog-driven ordering and automation, there are a few other key areas where generic CPQ systems just don’t work for CSPs. These gaps not only slow down operations but also affect the financial health of many providers. Here three additional ways current CPQ systems are falling short of what telcos really need:

1. Lack of real-time clarity on profit margins
   • More than 25% of responding CSPs said they want better visibility of margins in real time.
   • Many others who have access to information about their profit margins report uncertainty about data accuracy.
2. Struggles with the complex qualification processes required by telcos
   • Qualification, especially for fixed line services, requires feasibility checks across a complex web of factors, such as asset mapping and resource availability.
   • 48% of CSPs flagged qualification inaccuracies as a priority issue that needs immediate attention.
3. Slow response times when providing quotes, limiting competitiveness
   • 50% of CSPs reported taking more than three days to respond with an appropriate quote due to qualification processes.
   • Some CSPs mentioned losing out on sales by not responding in less than one day.

How CSPs Can Future-Proof Their CPQ

While Appledore’s research outlined three critical shortcomings standard CPQs haven’t been able to overcome, it also offered solutions for CSPs looking to stay ahead in an ever-changing industry. Here are the three of the five key factors Appledore identified that CSPs should consider when assessing a CPQ system:

1. It should be purpose-built for telco. Future-proof CPQ systems should have capabilities like telco API compliance and ongoing support tailored specifically for telco needs. This ensures that the system can handle the unique requirements of the telecommunications industry and provide the necessary support for CSPs.
2. It should be composable. Flexibility and configurability are key features of a future-proof CPQ system. These systems should be able to adapt to the dynamic nature of telco products and services. This means that CSPs can easily modify and configure the system to meet changing market demands and customer expectations.
3. It should be financially dexterous. Advanced financial capabilities are essential for supporting modern revenue models and partner settlements. A future-proof CPQ system should be able to handle complex financial transactions and provide accurate, real-time financial data to help CSPs make informed decisions and optimize their revenue streams.