Sector Alarm’s scalable and cost-efficient European growth
Reduced costs or improved customer experience? Sector Alarm shows how to achieve both with the smart automation of billing and payment processes. Find out what this security company’s CFO has to say on the results of implementing a new payment platform in three Nordic countries. Seven-figure savings thanks to fewer paper invoices is but one example. You can also read about the company’s plans for continued European growth and expansion with Billogram as its billing partner.
Sector Alarm began its partnership with Billogram in 2021 with the aim of harmonizing its internal processes and offering the same convenient customer experience regardless of market. Bjørnar Bukholm, Group CFO at Sector Alarm, explains why the company chose Billogram:
"Ever since we began our European expansion, we’ve had the ambition to use the same billing partner everywhere. There is, however, a limited number of providers with the necessary capacity, and after evaluating all options, we decided that Billogram was best suited to the job. What’s more, we share the same vision of a digital customer journey and billing experience. Together, we’re striving to automate as many of our manual processes as possible.
“We’re already seeing favorable KPIs in all countries”
Billogram’s platform enables Sector Alarm to gather all invoice management in a single, user-friendly interface, significantly reducing internal administration. The new platform rollout hit Finland first, in September 2022, followed by Sweden and then Norway.
"The implementations unfolded exactly as planned, and we’re already seeing favorable KPIs in all three countries,” reports Bjørnar Bukholm.
Four areas improved by the new payment platform
Here are a few of the positive effects seen by Sector Alarm after one year with Billogram’s platform, as compared to the company’s previous solution.
1. Increased digital distribution
The percentage of digital invoices has increased in all three countries, with the current figures standing at 70% in Finland, 85% in Sweden and an impressive 96% in Norway. CFO Bjørnar Bukholm explains this with the fact that Billogram has been extremely proactive in efforts to move customers to digital channels and automatic methods of payment:
“As an example, we now use digital onboarding for new customers, so it’s no longer standard procedure to send the first invoice on paper.”
2. Reduced cost per invoice
The digitalization and optimization enabled by the platform has reduced the cost per invoice by 6% in Finland and Sweden and 8% in Norway. In monetary terms, this means annual savings of almost one million Norwegian crowns in Norway alone.
“Billogram has proved to be a more cost-effective option than our previous solution. This is largely due to an increased share of digital invoices and, subsequently, fewer paper invoices than before,” Bjørnar explains.
3. More customers paying on time
As CFO, he’s also clearly pleased to see customers paying their invoices on time to a much greater extent than before. The percentage paying by the due date increased to 84% in Finland, 95% in Sweden and 92% in Norway, with 98–99% of invoices paid within 60 days in all three countries.
“It’s become easier for our customers to receive, understand and pay their invoices. The fact that more people are paying on time has also improved our cash flow within operations,” Bjørnar reveals.
4. Fewer reminders (and debt collection cases)
If, despite everything, a customer fails to pay their invoice by the due date, automated processes come into play, all governed by a logic established by Billogram and matching Sector Alarm’s preferences.
“This has delivered amazing results. We’ve more than halved the number of reminders we send in these markets, which means lower costs for us and a better experience for our customers,” says Bjørnar.
Southern Europe and Ireland next in line
Bjørnar explains that Sector Alarm is so happy with the partnership that a decision was made to extend the agreement with Billogram in advance. What’s more, the company’s European expansion is gathering momentum:
“At present, we’re planning to roll out Billogram’s platform in Southern Europe and Ireland, an initiative we’re really looking forward to,” he ends.
If you'd like to get in touch with us directly, don't hesitate to contact us.