- Scalable technology
- Comprehensive applications and services
- Multi-channel
- Multi-country
How Utility Companies Can Cut DSO by 80%
The Castle Water Story
For C-suite executives in the utility industry, cash flow is the lifeblood of the business. One of the most significant and often overlooked drains on that cash flow is a high Days Sales Outstanding (DSO). It’s a metric that reveals more than just how quickly you’re being paid; it’s a symptom of inefficient billing, poor customer communication, and a lack of process automation.
But what if you could fundamentally change that? What if you could implement strategies that didn’t just inch your DSO down but slashed it by 80% in a single quarter?
This is the story of our client, Castle Water. As the UK’s leading independent water retailer, they serve over 250,000 customers, from small businesses to large, multi-site enterprises. They are a company on a growth trajectory, but they faced a critical challenge: their billing processes were not keeping pace.
They needed a way to modernise document distribution, enhance customer engagement, and accelerate cash flow, all while keeping operational overhead in check.
The result? By focusing on a new strategic framework, Castle Water saw their DSO reduced from 50 to just 10 days in one quarter.
So, how did they achieve such a transformative outcome? It wasn’t by chance; it was by leveraging four core strategies.
1. Proactive Engagement: A New Approach to Communication
The traditional approach to collections is reactive: wait for a payment to be late, then chase it. This creates friction, strains customer relationships, and, most importantly, adds days to your DSO.
Castle Water shifted to a proactive engagement model. They used personalised, multi-channel communication tools to connect with customers early in the payment cycle. This isn’t just about sending a generic reminder; it’s about using data to understand a customer’s preferred communication method and payment habits. By doing so, they were able to build stronger relationships and, critically, prevent late payments before they occurred.
2. Flexible Payment Options: Making It Easy to Pay
Customers today expect convenience. For large enterprises, this might mean easy integration with their accounting software. For a small business, it could be the simplicity of a mobile payment. Restricting customers to a single, rigid payment method creates unnecessary friction, which directly impacts DSO.
Castle Water addressed this by offering a range of flexible payment options. They leveraged automated, smart reminders that included direct payment links. This streamlined the payment process, making it effortless for customers to settle their bills on time. The outcome was a significant reduction in the payment cycle and a boost to on-time collections.
36%
of customers migrated to pay by bank (reducing card fees)
82%
of payments received before due date
4x
reduction in Days Sales Outstanding
64%
of payers used Pay-by-Card channels
3. Effortless QR Codes: The Power of ‘Scan-Pay-Done’
In a digital-first world, simplicity is a competitive advantage. QR codes and payment links have become standard in many sectors, yet they are often overlooked in enterprise billing.
Castle Water introduced dynamic “Scan–Pay–Done” QR functionality and payment links into their billing process. This small but powerful change streamlined customer journeys, turning a multi-step process into a single, quick action. This innovation not only reduced payment friction but also demonstrated a commitment to modern, customer-centric service.
4. Seamless Integration: The Foundation for Change
None of these strategies could have been implemented effectively without the right technology. A common barrier to digital transformation is the fear of complex, time-consuming IT projects.
The foundation of Castle Water’s success was a SaaS platform that integrated seamlessly with their existing systems. This meant that the implementation was smooth and rapid, with minimal in-house IT requirements. It enabled them to adopt these modern strategies without the typical headaches of a major software overhaul, allowing them to focus on their core business.
Conclusion: A Blueprint for Your Business
The Castle Water case study offers a clear blueprint for any organisation looking to gain control over its cash flow. Their success proves that DSO reduction is not a matter of luck but the result of a strategic, modernised approach to billing and customer engagement.
By moving from reactive to proactive communication, offering flexible payment options, and embracing seamless technology, you can achieve similar results. These aren’t just incremental improvements; they are transformative shifts that can dramatically improve your financial health and position you for sustained growth.
Ready to explore how these strategies can be applied to your business?
United Kingdom
Sweden
Denmark
Finland