How Enterprise TEM Challenges Drive Customer Acquisition: Based on the Gartner Report

According to a recent Gartner survey, the average reduction of total cost of ownership (TCO) is 13 percent when deploying telecom expense management (TEM). Of the respondents, 40 percent reported a TCO reduction of 10 to 20 percent. 36 percent of the enterprises reported a reduction of 10 percent or less.

Most enterprises would agree that the benefits of TEM are very evident. Some of these advantages include improved business process outcomes, extended scale and geo scope, and better visibility. However, TEM is not without its disadvantages, which include hidden costs and the extra time needed for implementation. In general, customers choose TEM providers based on scalability, TCO reduction, and expected performance. Unfortunately, the disadvantages of TEM cause TCO reduction to be lower than it otherwise would be.

Based on the Gartner report, here is some information about how enterprise TEM challenges drive customer acquisition.

How Tech CEOs in TEM Providers Can Succeed in New Customer Acquisition

According to the Gartner report, tech CEOs in TEM providers can succeed in new customer acquisition by doing the following:

  • Make sure that TCO expectations are reasonable for the scale and scope of the engagement by providing transition times, pricing structures, and TCO targets that are realistic. Guarantee return on investment, if possible.

  • You should specify key areas/regions, demarcation points, and roles and responsibilities between the organization and the organization of the end customer. You should commit to targets and SLAs. Be sure to clarify the circumstances when you apply additional pricing or overages and be transparent about how they are applied throughout the engagement.

  • Show professionalism, depth of knowledge, flexibility, and responsiveness via the preselection, precontracting, and preimplementation stages for acquiring new customers. Be sure to provide updates on a regular basis on TCO, performance, and other key target metrics.

Benefits of Deploying Telecom Expense Management

Some of the advantages of deploying telecom expense management include the following:

  • The deployment telecom expense management improves business process outcomes beyond cost optimization.

  • The extension of the scope and scale of deployed assets.

  • The boost of control of services and estates and provision of additional visibility.

  • TEM features a number of functional areas that help an enterprise improve their wireline, wireless, and other asset estates related to communications. This is true whether the TEM is performed internally with a DIY tool or provided by a TEM provider in a managed context.


Some of the recommendations for tech CEOs in TEM include the following:

  • Get rid of common customer pain points and determine the customer requirement/deployment time upfront by location and site.

  • Provide details when it comes to how and why deployment issues are occurring and offer key action points. The key action points should address the deployment issues and there should be follow-through for each action.

  • Define resource allocation and accurate time scales for implementation by site and geographic location. More fragmented markets can boost lead times. If this is true, explain why.

  • Clarify responsibilities and roles with demarcation points between the end-user customer organization and your organization. You should make sure that the customer understands the nature of their obligations as well as your obligations as a part of a managed TEM engagement.

  • Provide service-level agreements for commitments to the targets.

  • Set expectations of predictable pricing structures and costs for enterprises. Make any additional charges or overages clear and spell out how they will be calculated through the engagement and not just at the beginning.

  • Ensure that performance and scalability are realistic. This should be true across technology areas and geographically. You can accomplish this by having a good understanding of the needs and expectations of your customers. Make sure the customer has a good understanding of their responsibilities associated with deployment of TEM.

Overall, enterprises hope to enhance their process by deploying a managed service that will help optimize estates and provide control, scalability, and visibility. Enterprises also want to get a solid return on their investment for the enhancement of these processes.

When attracting and retaining customers in TEM, there are a number of challenges and benefits. These challenges and benefits differ by country and region. It is important that tech CEOs work to tackle the challenges and highlight the benefits. Tech CEOs in TEM providers need to make sure TCO expectations are as realistic as possible to succeed in new customer acquisition. This will guarantee a solid return on investment. While the main advantages of TEM center around the enhancement of process outcome, it is also a measure that many enterprises use to assess performance.

For more information about how enterprise TEM challenges drive customer acquisition or outsourced TEM software and services, let’s jump on a call.


Victor brings 5 years of enterprise & SMB sales experience in the IT software space. Prior to joining Valicom, he served as regional channel sales manager working for one of the industry's largest enterprise labeling software companies. With a focus on great customer service in helping channel partners grow their businesses, Victor joined the Valicom team in late 2015 after relocating to the Madison area. Victor holds a bachelor's degree in Communication from UW-Milwaukee, and when he's not in the office he enjoys exercising, travelling abroad, and spending time with his growing family.