Two service providers change their processes and achieve stunning results
When you think of credit risk assessment, you think of an essential front-end process required for all new accounts. Have you considered changing that process to get better results? Have you thought about incorporating a risk review using alternative data into other parts of the account lifecycle, such as account management and collections?
Two National Consumer Telecom & Utilities Exchange (NCTUE®) members can answer yes to both questions. Here we share their stories, offering a peek into how you can help improve results for your organization.
Re-think collections, regain control
Each year service providers in the utility, pay TV, and communications industries lose billions of dollars in write-offs. PSNC Energy was experiencing its share of bad debt and write-offs, and sought to make a change. After joining the NCTUE, they improved their business processes and reduced write-offs by two-thirds. How? By locating customers with unpaid bills — and fast.
This is how it works. A customer moves without paying their gas bill. PSNC Energy will report that information to the NCTUE. The NCTUE database then matches that information on the unpaid-closed account to new applications for service from other energy service providers. PSNC Energy then gets notified, which fast-tracks their ability to locate the customer and collect payment quicker than ever possible. With their contact rate being 41% higher, this is a smart strategy.
Predictable performance saves $1 million
Georgia Power, another NCTUE member, leveraged NCTUE data as part of its customer credit risk assessment and saw a ripple effect throughout its operations, ending with a big exclamation point: a whopping $1 million reduction in write-offs.
By simply folding NCTUE data into its credit assessment and account monitoring processes, the company was able to radically improve its understanding of all customers—including those with and without credit. This deeper insight into future account performance helped Georgia Power better predict results and identify fraud, which ultimately helped them avoid bad debt.
It’s time for a change
Taking the time to think differently about their data and processes helped both of these organizations achieve game-changing cost reductions and performance improvements. NCTUE data includes customer account payment data shared by more than 95 members within the utility, pay TV, communications and home security industries. This data reveals how customers, including those who lack credit files, pay their “everyday bills” and can also help make a huge impact on reducing write-offs.
Download the case study infographic on PSNC Energy and Georgia Power.
For more information about the NCTUE, visit www.nctue.com.
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