Utility Week

28 | OCTOBER 2022 | UTILITY WEEK Customers Download report Helping customers stayafl oat A new Utility Week report, in association with Mastercard, examines how utilities are innovating to help tackle customer debt, and the role technology is playing in accelerating this process. D omestic and business customers across the UK are braced for a bleak winter, punctuated by increasing con- cern over the spiralling cost of living. In recognition that utility bills can rep- resent an unbearable burden, energy and water companies are already taking practi- cal steps to improve billing and payments processes and provide additional support for bill payers facing vulnerable circumstances. To examine the action being taken across the industry as companies seek to improve collections processes and customer engage- ment channels, Utility Week partnered with global payments and technology company Mastercard to conduct a unique piece of research with industry leaders. The • rst instalment, titled How Well Do You Know Your Customers?, sought to reveal the challenges for energy and water utilities as they explore how an enhanced approach to billing can help to address some of the pressures currently facing customers. This subsequent report, titled Are You Doing Enough to Support Your Customers?, details how technology is currently helping utilities tackle customer debt and how this is expected to evolve over the next • ve years. According to our survey, when faced with bad debt, more than nine in 10 utilities turn to - exible repayments or increased customer commu- nication. However, the old adage of preven- tion being better than cure comes to mind. It is clear that earlier intervention to prevent customers from falling into long-term debt is crucial. Flexibility and proactive communication were again most popular with respondents when asked which tools their business uses to help prevent customer debt. The • ndings show 86% of water and energy companies are providing some element of - exibility in repayment methods, while 95% highlighted the importance of early and proactive cus- tomer engagement. Responding to the cost of living crisis The vast majority (95%) of respondents across water and energy said they were con- • dent in their organisation's ability to prevent bad debt. While the col- lections process is hugely important in recovering money owed, utilities' ability to identify and oŽ er support to customers before they fall into debt is arguably even more important. EDF Energy has undertaken a major pro- ject to better understand its customer base using data insights. "We have what we call a 'customer behavioural index' which seg- ments customers according to the challenges they might face. Once we created that seg- mentation, we then built a new payment collections platform that tailors the style of communication and the way we communi- cate to whichever customer group they fall into," explains Christopher Dalley, customer services director at EDF Energy. "It is all automated, so if it is a vulnerable customer, all of the support they can access will be signposted to them. If it is a customer that has traditionally been a bit more chal- lenging or assertive when engaging In association with A Utility Week research report in association with Mastercard September 2022 Billing and payments Are you doing enough to support your customers? Download the report Download the report Billing and Payments: Are You Doing Enough to Support Your Customers? free at: https://utilityweek.co.uk/billing-and-payments-are-you- doing-enough-to-support-your-customers/

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