17 Year Partnership
Resolving finances and evolving services
Professional enough to manage, flexible enough to change
Arvato finance’s partnership with one of the leading global web services companies began in 1996 with the launch of the client’s European division. The client was experiencing unacceptable levels of bad debts and write-offs in Europe, as well as high customer churn due to ineffective billing. Initially the engagement was focused on developing an effective billing and payment service for the client’s European subscription service. Further into the relationship, the client sold its European Internet Service Provider (ISP) businesses to concentrate on its paid-services platform and business model. Arvato finance was tasked with supporting the client in handling the discontinuation of the Internet services and resulting reduction in transactions.
Accounts receivable brought within acceptable limits
Bad debt write-offs reduced significantly by five
Cash flow improved through continuous and sustained levels of cash collection
Ten-fold reduction in customer churn achieved
Customer satisfaction raised due to stream-lined processes and quick resolution of billing-related issues Low rate on chargebacks for the countries currently served .
Successful and solid partnership throughout the client’s changing business model
For over a decade Arvato provided a full suite of financial management services tailored to the client and its European operation including the development of a proprietary debtor management system for customers; local payment processing in three European countries with five different tax systems and up to four payment methods for each country; and customised the debt collection processes for each market Arvato established a dedicated shared-service centre to support the client’s back-office billing and payment processing.
In an effort to support the web services client in their transition to a paid services business, Arvato finance transferred data successfully from the client to the companies purchasing its ISP businesses. Equally important, Arvato finance condensed and archived the client’s customer data to ensure full compliance with data protection regulations.