Best Practice in Utilities Debt Collection

Utilities debt collection has unique characteristics and challenges.

Water and energy are essential to our lifestyle and are an important component of household expenses.

But with public scrutiny at the rising cost of living, the seeming imbalance between the cost of domestic energy and the global price of oil and gas, and an association between utilities, big business, executive pay and financial services, energy suppliers often find themselves in the firing line of the media.

Debt collection must therefore navigate these turbulent times with care. Engaging in a coherent multi-channel collections strategy will absolutely improve your reputation.

Multi-channel contact and payment

Multi-channel contact is nothing new but rapid technological change means businesses need to be vigilant, and ready to adapt and adopt new practices as and when they become mainstream. Changes need not be big nor expensive, but their impact can be significant.

With so many more channels available today and new ways to make a payment, chances are you can generate more revenue and slash costs at the same time.

Consider the channels people converse in. Direct mail and outbound calls from a call centre through a dialler are not particularly effective – and time has moved on. Not only are they expensive to operate, their success at making contact and instigating a meaningful action (be that a conversation or payment) is less than favourable.

People now communicate on the fly. On the Net. On their mobiles. By text. By email. The power is in the hands of the consumer.

With almost 90 per cent of UK adults owning a mobile, 60 per cent owning a smartphone and 84 per cent of households having access to the internet, an online and mobile contact and payment strategy is an absolute must.

At the same time customers are demanding self-service. Calling a call centre and discussing debt was never easy for customers. Now they don’t have to with so many different options available.

SMS, interactive voice messages or email are a fraction of the cost of creating and sending a printed direct mail, and also generate a faster response. Taking payments online or via an IVR line is often cheaper, and less cumbersome, than processing a cheque.

Giving customers options is not only more convenient for them but it also encourages more people to pay: online via the website, via a link in an SMS, via an app, bank account, or a personalised customer journey through innovative channels like Enriched Messaging.

Conversation doesn’t have to be verbal either. Enable customers to converse and pay via text message with Conversational SMS; or install an IVR payment line to enable self-service payments over the phone thereby taking conversation out of the call centre and out of the equation altogether.

With calls diverted from the call centre staff can concentrate on more important tasks like contacting high value customers or take the time to contact vulnerable customers.

However, don’t forget some people still prefer traditional mail and paying by cheque.

The importance of strategy

So now you have the tools at your disposal, what next?

Understanding that people react differently to different touch points is the first step in creating a multi-channel strategy.

A strategy can drive inbound calls to the call centre, or keep them at bay. A clear strategy also provides options to make a payment. How you structure your plan will ultimately determine this.

A strategy separates customers into distinct groups (urgent, low value, high value etc.) and creates a unique communications plan for each. Each plan is also automated. For example, after a payment is missed a text message is sent. If payment has not been received, send an interactive voice message one week later. Should that not succeed, send another text with Conversational SMS or Enriched Messaging three days later.

Utilities have customers numbering in the millions so automating outbound contact is the only realistic way of successfully contacting people in the most cost-effective manner. This does not mean mass repetition. Personalise every message with name, account details, contact details and more to generate the best possible return.

Whether you want people to call the contact centre or make a payment online will be determined by the channel, its content and payment systems you use.

Remove outbound manual contact altogether, divert calls out of the call centre, allow customers to self-serve and make a payment over the phone, online or on a smartphone. No longer need you rely on diallers when most of the calls go unanswered or people are too busy to answer that the effort is wasted. No longer do you need to spend £1,000s on direct mail when most people will respond to – and prefer – an SMS, voice call or email.

A coherent strategy can cater for more vulnerable customers as well who may need a more personal attention.

Creating a strategic multi-channel communications plan you are offering customers several points of contact – in channels they use – and a range of payment options. New channels can reduce costs significantly, generate a better response and increase revenue markedly. Rather than having to call the call centre there is an emphasis on being able to self-serve or interact without communication being face-to-face.

A multi-channel contact strategy is definitely a win-win for both parties.