mySafety

Securing flexible invoicing options

Arvato adds value and multiplies business

Challenge

Security company mySafety started in 1999, and today it is the leader in ID-protection and general security in Sweden, Norway, Finland, Poland, Russia and Ukraine. The company operated its business by invoicing its customers in a one-off basis for services that would last between 12 and 36 months. This generated a relatively high customer churn, and little opportunity for upselling other services. Additionally, the nature of the invoicing process resulted in a difficult to manage liquidity, with periods of high influx of payments.

Solution

Arvato designed and implemented new flexible invoicing options. This allowed the incorporation of new services and products to existing subscription accounts from customers, merging the payments into a single monthly invoice covering all services. Arvato took over the financing and administration of subscription accounts, being responsible for monthly invoicing of the client’s customers. Finally, Arvato created a customer solution to deal with customers’ invoice issues.

In 2011, I challengedarvato to come up with the solutions that I needed tofulfil our company vision and to overcome the identifiedobstacles from an operational, sales and financial point of view. arvato developed awhole new subscription and financing solution that not onlyadd value in many different parts of our operationalprocesses, it also enabled us to multiply our business. We partner with arvatobecause we know that they will rise up to meet ourstandards – today and tomorrow.

Daniel Elfvendahl, CEO, mySafety AB

Success

Client started with no subscriptions, and today we manage 100,000 accounts.

Improved invoicing process with the incorporation of monthly subscription payments instead of upfront payments (every 12, 24 or 36 months), leading to upselling opportunities and significantly improved margins.

Reduction in customer churn rates due to monthly invoicing and recognition of brand.

Economies of scale with client’s existing customer service centre acting as a sales channel for upselling opportunities.

Reduction in the number of bad debts.

References