We partnered with a medium-sized energy supplier to overlay digital capability onto their debt management process and run bespoke campaigns, leading to improved customer engagement and collections performance.
Within 12 weeks, the initiative delivered ~£10m in cash, strengthened customer experience, and significantly increased the efficiency of debt operations. This created valuable breathing space, enabling the supplier to address an in-year challenge while we designed and deployed a longer-term, holistic solution.
Client Challenge
The supplier was facing a growing and ageing debt book, driven by outdated dunning capability, with processes requiring significant intervention.
Data quality was also a challenge, while debt journeys were rigid and analogue, due to a reliance on lengthy system changes and a lack of digital capability. This was leading to inconsistent treatment of accounts and backlogs of activity, requiring manual intervention to enable customer payments.
Our Approach
Our team worked with the supplier to design and implement a digital white-label debt campaign, re-engaging customers across all debt ages and making it easier for them to pay.
Our approach focused on speed to value, with a white-label solution implemented within four weeks of contract signature.
We focused on:
- Segmenting customer data and defining campaign cohorts to enable targeted engagement
- Onboarding a digital white-label partner, adding self-serve payment and arrangement functionality to the existing tech stack
- Improved data utilisation to identify additional contact details, driving a ~150% uplift in active accounts and a ~200% increase in collectable balances
- Implementing automated and targeted engagement strategies with clear call to actions, enabling a ~50% liquidation rate on accounts in debt
- Protecting customer experience through defined exclusions and tailored communication strategies
Outcome
Within 12 weeks of campaign activity, the initiative delivered:
- ~£10m in cash
- Increased 90-day collection rates from 87% to 93%
- A scalable, digital model enabling the client to manage collections more efficiently and enhance customer experience
For more on unlocking sustainable value in debt operations, contact Rachel Littlewood or Joseph Cooper.
