Profitable Business Growth Through Pareto

Intelligent automation is opening the door to new credit and A/R strategies based on the reality that for most businesses, 80% of revenue is generated by just 20% of the customer base. We call this the long-tail. With the right approach to managing long-tail credit and payment processes, your teams can spend 50% less time on routine credit and A/R transactions. That increases capacity for servicing the top-tier customers which generate the majority of your organization’s revenue.

Benefits of Automating Long-Tail Transactions
There’s a clear difference between customers in the 20% group and the rest in terms of their profitability for your business. This remaining long-tail group typically generates 80% of the high volume, smaller, repetitive transactions. Why handle these long-tail transactions manually? Long-tail transactions are time- and labor-intensive, and there is an opportunity cost to using resources to serve lower-profit customers when they could be spending more time with higher-revenue customers. 

Apruve automates long-tail credit and A/R processing to streamline A/R team efficiency and save 35% in cost compared to traditional business to business credit management. With Apruve, enterprises automate and elevate the buyer experience for every long-tail customer. They can also manage growth in long-tail invoice volume without expanding their A/R team.

Automating A/R and credit can reduce costs by 35% or more compared to traditional B2B credit management

The streamlined efficiency of Apruve solutions can help your team drive more value and profit from long-tail customers through: 

• Days Sales Outstanding (DSO) decreased to one day
• Increased cash flow
• Decreased manual processing errors 
• Faster customer onboarding

Focus on Your Top 20% of Customers

Global enterprises use Apruve to manage their service investment in top-tier customers. With intelligent long-tail credit and A/R automation, A/R teams have time to invest in enhancing the buying experience for top-tier customers through activities such as:

• Accelerated customer onboarding
• Fewer errors with customized billing requirements
• Proactive credit and A/R issue prevention and faster issue resolution

In this way, A/R teams can deliver an enhanced experience that supports increased customer satisfaction and retention and ultimately, additional revenue. 

Make Time for A/R Objectives

When your team is operating at maximum capacity with credit and A/R transactions, it’s nearly impossible to work on other strategic A/R objectives. Deploying intelligent automation can give you the time to develop a better, more streamlined underwriting process or take action to improve working capital management or your overdue collections process.  

A Better Buying Experience for All

With intelligent automation, your team can deliver a better buying experience for all customers, whether they’re part of your long-tail segment or top-tier group. Need to know more? Download our white paper to learn how intelligent automation applied with the Pareto principle can create business process transformation.