Customer data from acquired companies merged into central repository
A multi-billion dollar private equity group purchased two health club chains and merged them as part of a roll up strategy. Each of the purchased chains had multiple locations, and taken together, had hundreds of thousands of member records.
The Problem We Solve
The merger process was conducted on a compressed schedule which did not allow for proper merger of the disparate data sets. As a result, the merged company was unable to accurately account for the number of members they had and the active membership for each.
When the customer data was imported into the billing platform, incorrect bills were sent to the majority of members. This made it impossible for the finance team to provide revenue numbers. In addition, most members refused to pay the incorrect bills causing cash receipts to drop by over 60%.
Taken together, the private equity group was forced to provide a multi million dollar emergency infusion of cash for an investment that was modeled to be cash flow positive from the start.
The Enabled Concept team was brought in to built a centralized customer data hub and re-migrate the customer data to the billing system.
The Enabled Concept team built data adapters for the customer systems in each of the companies and used those adapters to import the raw data into a staging warehouse. Using a series of algorithms the imported data was scanned for duplicates and matches until a unique member set was determined. A similar process was used to identify the active membership associated with each member. Thereafter, a unified customer and membership model was constructed for the new business and the unified data was imported into the new customer model as well as the billing system.
Once the import was complete, the billing process was restarted. Within three months revenue and cash flow returned to pre merger levels. In addition, the client was able to use the model to recover unpaid invoices from the disputed bills.