Utility Week

28 | 23rd - 30th September 2016 | UtILItY WeeK Customers Market view I recently attended a conference centred on vulnerable customers and customers in debt. During the day, the chairman asked delegates: "Hands up if you would all like more data on your customers?" Not surprisingly, the majority of people quickly put up their hands. Then came the pertinent follow-up question: "How many of you could accommodate and utilise more data?" At which point, an awful of lot of those hands then went down. Data quality – room for improvement It le- me thinking the correct question is actually: "Would utilities benefit from more accurate customer data that helps them make more meaningful decisions about their customers?" As well as looking to access quality data sets, utility companies could carry out data quality audits. The quality of data within the sector is improving, but there is a long way to go to catch up with the financial services sector. With complete data on customers, such as the simple fields of titles, full names, and contact details, utility providers will increase their right party connects and will also empower their own agents to have first contact resolution. In addition to the lack of these basic data requirements, it can have a detrimental effect on other areas of the business such as collections. Collections teams find it doubly difficult to collect if they don't have all the basic information on a customer and if that customer moves away, tracing them is again very difficult – not to mention of further expense to the business. Putting the customer first In this current climate, putting the customer at the heart of your business is one of, if not the biggest, business priority. With so many utility companies currently going through some form of transformation project, now is the right time to invest in improving the quality and accuracy of the data that the business holds, not just the quantity. By investing in a solution that allows a genuine single customer view, utilities will be better prepared to ensure that customers remain loyal in a time when they have more choice than ever. A single customer view will allow providers to track customers and their movements across the variety of systems they hold and the products that they take, and will help link internal customer relation- ship management (CRM) and billing systems. When using unique identifiers, rather than relying on the customer to provide consistent information, utility providers can link accounts within the change of tenancy processes. Responsible debt collection There are currently more than seven million home moves every year. These are frequently the stimulus for a customer to change supplier, or simply to not tell their current supplier they are moving. The value of debt that is related to change of tenancy has been well documented. Utili- ties companies have been chasing their tails for many years over this subject, not know- ing when customers have le- and not know- ing who has moved into the property. The customer is not necessarily going to help, so data is the only real option. It is already difficult enough to collect bad debt in the water sector because water is classed a non-priority debt, which means their counterparts within the energy sec- tor are more likely to get a bigger slice of an already small cake. In a monopoly sector where suppliers are primarily judged on service, the quality of data is imperative to ensure a suitable and effective collections strategy. Water compa- nies would benefit from considering what data feeds they already take and where improvements can be made. With deregulation of the water sector on the horizon, customers will be able to choose their supplier. Water companies will have the opportunity to consider a credit risk based model for the first time; while it is unknown at this stage how deregulation would be implemented, it is unlikely water companies would be able to refuse a customer. How- ever if at the acquisition stage there are tariff options, then a risk-based model will allow the company to assess the customer prop- erly. Further, by assessing the customer up front, they will have data to allow them to understand which customers are unlikely to make payment down the line and which cus- tomers are likely to need assistance. By using bureau data to accurately assess customers when they come on board, water companies will be in a stronger position to make decisions on customers who could either struggle or refuse to pay. Perhaps this is something they should begin to consider now so as not to be le- behind. Making accurate affordability assessments There is data available to these organisa- tions that is derived from a customer's actual income. Furthermore, a utility provider can have knowledge about a customer's secured and unsecured borrowing, and how this is affecting their ability to repay their utility bills. If a utility provider has these data sets, it can make accurate assessments of the cus- tomer's ability to pay and whether or not they should be protected from further collec- tions activity – and if indeed the customer should be handled by a specialist team to help financially rehabilitate them. Implementation of data is also an issue for utility providers. By working closely with a bureau, utility providers can lean on their data providers to assist them in utilising the data. By using the appropriate data sets, rather than just more data, utility providers have a win-win situation. By understanding a cus- tomer's position in respect of their ability to pay and their overall affordability, a utility provider stands a better chance of collect- ing, or helping the customer find one of a number of payment assistance schemes to collect some of the debt. This will also lead to the second win, which could be argued is equally important – of customer satisfaction. Nick Smith, utilities consultant, Callcredit Information Group More data, or just better data? By using appropriate data sets, rather than just more data, utilities can accurately assess customer ability to pay and ensure a suitable collections strategy – and customer satisfaction, says Nick Smith.

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