In October 2009, we were mandated by a major player in the health and fitness industry to perform a critical analysis of their sales and receivables cycle, in order to determine the reasons for high rates of non-payment of their member subscription fees.
The company had recently appointed a new financial director, who required a detailed understanding of the business and its challenges in order to assist with decision-making.
Our strategy involved the placement of a consultant at their head office and one of their flagship branches, in order to gain an in-depth understanding of the workings of the business.
The result of the exercise was that management gained a complete understanding of the reasons for their revenue losses. Our report provided them with a detailed understanding of the problems they were experiencing collectively and individually in the departments of collections, administration, sales and CRM, and how these problems ultimately resulted in lost revenue.
The report laid out clearly and concisely our recommendations and implementation strategy, and ultimately resulted in the company outsourcing its entire collections function.