Debt Reduction Through Operational Improvement for Residential Customers

Our challenger energy client was experiencing high levels of debt that were increasing month on month. The client operated their collections activity in a CRM system, but without a dedicated collections system only minimal customer segmentation was in place. In addition, the client passed overdue debt to a Debt Collection Agency, however the results were below industry standard.

The client’s challenges were addressed using our operational expertise in credit and collections, underpinned by our analytics capability. We delivered new debt path steps with improved customer segmentation and implemented new digital communication channels. We set up a new Debt Collection Agency with industry experience, who collected as much in five weeks and the previous DCA did in eight months. Our team also trained our client's agents in advanced collection techniques and set collection targets and ongoing monitoring to achieve a 50% improvement in collection rates.

See how our Credit Risk team created a £1.7m debt reduction in 3 months.