Situation: This customer was approaching contract completion with their primary global wireless provider. They were 6 months into their internally-led RFP negotiations with the carrier and were informed by the carrier Sales VP that the current proposal was “the absolute best we can offer.” This customer has the largest telecommunications spend of any corporation within the United States.
Due to their large telecom expense, the internal negotiator for this client is an executive and is dedicated in his role solely to contract negotiations. He is a former carrier negotiator (as are the negotiators for G2) with years of high-level and aggressive carrier experience.
Negotiation: G2 was engaged to perform 11th Hour Negotiations and improve upon the 5.6% wireless savings already attained through internal efforts.
G2 conducted a Bidder’s Conference with the selected carrier and presented our Carrier Requirements Letter (CRL). The CRL defined with specificity the pricing, terms and conditions were expected in order for the carrier to successfully retain and extend their relationship with the customer.
G2 preceded with negotiations through the carrier Special Pricing and Legal Teams over the next week in order to “coach” them towards the desired result. G2 utilized our Benchmark Intelligence from other ongoing and recently-negotiated initiatives to leverage the carrier to acquiesce to our demands.
Result: G2 successfully negotiated an additional 29.6% in savings above and beyond the customer’s internal efforts. Over the new 2-year term, this savings resulted in an additional 7-figure incremental savings as a direct result of our negotiation improvements.
In addition to cost savings, we also negotiated market-leading terms and conditions that greatly enhanced our customer’s flexibility for managing their wireless services and also reduced their contractual liability. An example is this carrier’s agreement to waive all termination costs, thereby allowing our customer to have all users coterminous with the contract end-date.
We also performed a comprehensive Wireless Optimization that allowed this customer to move to a custom-negotiated and simplified plan structure moving forward.
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