How parcelLab increased A/R visibility and streamlined subscription management
parcelLab, a leading provider of post-purchase solutions for enterprises, faced challenges in finding the right tool to manage accounts receivable for their subscription-based business model. Lacking A/R visibility and analytics, they knew they needed to find the right solution.
Jean-Thomas Cock
Head of Finance Operations
Mission statement
parcelLab is a truly global enterprise post-purchase software provider, enabling brands to increase top-line revenue, decrease operational costs, and optimize the customer experience.
FTEs
200
Industry
Ecommerce Software
Offices
Boston, Munich, London
Stack integrated with Upflow:
Maxio
Subscription business model creates unique A/R challenges
While parcelLab enjoyed success, their subscription business model presented unique challenges for their finance team, particularly in managing accounts receivable (A/R).
Unlike traditional one-time sales, subscriptions generate recurring revenue streams. This requires a more nuanced approach to A/R management compared to simply collecting payments after a single purchase.
Without the right tools, it was difficult for parcelLab to:
Predict Cash Flow: Limited visibility into customer churn and delinquency rates made it hard to forecast cash flow and identify at-risk customers.
Optimize Collections: Lack of data on payment history hindered effective dunning strategies for delinquent subscribers.
Added to this, a lack of visibility and analytics into their A/R performance further exacerbated these challenges for parcelLab, resulting in inefficient cash collection, and inaccurate forecasting. The right tools were needed to overcome these challenges and optimize A/R processes.
Maxio: The first piece of the puzzle
parcelLab's subscription model meant they first needed a robust billing solution in place. As Jean-Thomas Cock, Head of Financial Operations, explains, "We faced a significant challenge when it came to implementing a tool that could streamline our billing processes and provide the necessary insights for effective A/R management."
Their search led them to Maxio, which addressed their key requirements in several ways:
Streamlined Billing: "The ease of use from a billing perspective," Jean-Thomas highlights, "aligned perfectly with our approach. It simplified the billing process for both our team and our customers."
Customization for Unique Needs: Subscription models can be complex, and parcelLab required a solution that could adapt to their specific requirements. Maxio fit the bill.
Smooth Data Migration: Transitioning to a new system often involves data migration challenges. Thankfully, Maxio's capabilities ensured a smooth process. This minimized disruption and allowed the team at parcelLab to quickly leverage the benefits of the new tool.
We faced a significant challenge when it came to implementing a tool that could streamline our billing processes and provide the necessary insights for effective A/R management.
Adding Upflow: A best-of-breed A/R and cash collection tool
Following the successful implementation of Maxio for billing, parcelLab sought to further enhance their workflow and collaboration, particularly around accounts receivable (A/R) management and cash collection.
Here, Upflow emerged as the ideal solution, as Jean-Thomas explains: "Having used Upflow previously, we were impressed by its ease of use and flexibility. These qualities were crucial for integrating seamlessly with our existing processes and empowering our teams to collaborate more effectively."
Upflow's impact went beyond streamlining workflows. It fostered collaboration that improved communication and efficiency across departments. Here's how Upflow achieved this:
Streamlined A/R Communication: Upflow's support for various A/R workflows enabled parcelLab's Customer Success team to seamlessly integrate invoicing and collection efforts into their regular client interactions. This eliminated the need for siloed communication channels and provided a more holistic approach to customer relationship management.
User-Friendly Collaboration: Upflow's intuitive and "self-explanatory UX," as Jean-Thomas describes it, facilitated quick onboarding for new team members. This ensured everyone had easy access to the platform's data and could customize their dashboards to suit their specific needs.
We were impressed by Upflow's ease of use and flexibility. These qualities were crucial for integrating seamlessly with our existing processes and empowering our teams to collaborate more effectively.
Analytics mean parcelLab can now implement proactive cash collection strategies
Beyond communication, Upflow's powerful features empowered parcelLab with valuable data-driven insights.
A key feature highlighted by Jean-Thomas is the cohort analysis. This feature provides detailed insights into customer payment behavior and credit risk exposure. With this information, the finance team could proactively identify potential delinquencies and develop targeted strategies to mitigate risk and improve overall collection success rates.
By combining ease of use, flexible workflows, and insightful analytics, Upflow became a valuable addition to parcelLab's financial toolset. The solution has not only streamlined communication and collaboration but also empowered them with proactive credit risk management, ultimately strengthening their A/R operations and customer relationships.
A customized finance tech stack with best-in-class A/R management
By integrating Maxio and Upflow, parcelLab has created a finance tech stack that perfectly aligns with their subscription business model.
Maxio provides the foundation for streamlined billing processes, while Upflow delivers best-in-class accounts receivable management and cash collection capabilities.
A key advantage of this combined solution is the seamless integration between Maxio and Upflow. "Upflow is an external tool that synchronizes directly," explains Jean-Thomas. "Depending on the needs, it has a vast list of pre-built integrations, and even allows for custom integrations."
This eliminates data silos and ensures a smooth flow of information throughout the entire A/R process.
Upflow is an external tool that synchronizes directly. It has a vast list of pre-built integrations, and even allows for custom integrations.
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