DRIVE DOWN COST
“It’s a case of spending too much (and in the wrong place) on customer administration in credit, collections and customer service and not knowing which customers are profitable.”
Driving down sales and administration costs
The classic causes of this are multiple client systems, manually-intensive processes and a steady stream of process discrepancies, resulting in a heavy administrative cost burden and increasing customer unwillingness to pay outstanding invoices.
The Customer Value Group’s solution enables customer service issues to be identified early, reduces administrative error rates, streamlines and automates complex manual processes and reduces interest expenses by converting uncollectible AR into cash. As a result, sales and administration costs are driven down, increasing customer profitability.
Our approach, in partnership with our clients, is to focus on key cost drivers in the invoice-to-cash process by deploying software-enabled activity management and workflow technologies in the credit, collections and customer service areas.
Specifically:
- Implementing an automated approach to customer segmentation, aiding the prioritisation and management of resources for collections and customer service activities
- Deploying best-practice workflow, whether invoice related, disputes or simple administrative issues, analysing and eradicating root causes and thereby reducing process cycle times
- Allocating activity costing to each step in the collections and customer administration process, thereby transparently measuring and monitoring the cost of customer service, aiding the delivery of customer profitability
- Reducing Interest Cost and Bad-Debt Write-Offs through the reduction of outstanding invoices and Accounts Receivable and through focus on the quality of customer payment and credit
Our technology-led solution, capable of interfacing with any ERP, legacy system or data source, enables three related key benefits:
- The Customer Value Group drives down the process discrepancies that impact the cost of customer management through automation, error identification, resolution and root cause eradication
- Through automated task and workflow management, The Customer Value Group’s clients are able to optimise and flex the level of resource they apply to particular customer segments both in terms of AR Management and Customer Service
- The Customer Value Group’s software tracks the cost of every Credit, Collections and Customer Service task as well as the cashflow impact relating to the customer to provide transparency in customer profitability