The UK's water industry is currently facing a challenging period, with customers experiencing higher bills and companies contending with increased regulatory demands. Ofwat, the UK’s regulator for the water sector, has published their PR24 draft determinations that emphasizes the importance of supporting customers who are struggling to pay their bills. On top of this, companies are being required to invest more in improving their overall services.
This regulatory shift highlights the importance for water companies to improve collections performance, and communication is a crucial aspect of achieving this. By integrating personalized and proactive communication strategies, companies can significantly boost their collection performance while simultaneously supporting customers facing financial difficulty.
The steps to enhancing your collections and communications processes
Communication is the first and most important step in supporting struggling customers in the water sector. Since most customers are unengaged from the get-go, this calls for thorough engagement strategies to effectively reach out to those that need support. This strategy begins with a multifaceted approach that includes harnessing a mixture of both modern and traditional communication channels. From there, you need to leverage data-analytics to work out the best channels and strategies for individual customers.
Adopting omnichannel communication strategies
Using digital channels like email, SMS, and online services makes it easier to reach both new and existing customers. Offer timely reminders and updates about water usage, payment due dates, and service disruptions. This increases the chances of customer engagement and support-seeking. Balancing these with traditional methods like phone calls ensures coverage for all demographics, particularly older customers who may prefer them, helping to maximize engagement across channels.
Leveraging data analytics for personalized communications
Data analytics and customer segmentation based on payment history, preferences, and behaviors give you and your team the context for targeted communication strategies. For instance, reaching out over the phone to a customer with a history of late payments will be far more effective than automated messages. Analytics are what provides this visibility, and can also identify customers at risk of falling behind on payments. From there, you can tailor communications to support customers before they enter delinquency, aligning with Ofwat's customer engagement and proactive service delivery emphasis.
Why a configurable platform is crucial for streamlining collections
With legacy software, it’s extremely difficult to support multiple communication channels and implement any kind of data analytics. This is why a configurable platform is the foundation of a successful collections operation, especially for UK water companies that need to support customers and improve collections performance at the same time. These platforms seamlessly integrate with advanced technologies that improve customer communications, engagement and help enhance collections processes.
- Omnichannel capabilities: Configurable platforms store your customer’s contact preferences and integrate with your preferred omnichannel system. Whether they prefer interacting via phone, email, SMS, or online platforms, you can provide consistent support across each and use the one that is most likely to result in a response.
- Self-service options: These platforms support online portals and applications to provide customers with the ability to manage accounts, make payments, and set up plans independently. Automated payment solutions can also be introduced to reduce missed payments and enhance convenience, leading to better collection rates. This greatly enhances engagement by giving customers the opportunity to do so on their own terms.
- Operationalized analytics: Configurable platforms provide the tools to analyze customer data to identify payment risk patterns. From there, you can segment these accounts into groups based on their characteristics and efficiently tailor personalized strategies for each. This proactive approach lays the foundation for targeted communication and offers, aligning with Ofwat’s emphasis on customer engagement and service delivery.
By leveraging these technologies, UK water companies can streamline collections, enhance customer engagement, and better support struggling customers to fulfill Ofwat’s guidelines.
Reliably reach your customers with C&R Software
UK water companies require advanced collections technologies to successfully engage with unresponsive customers. Configurable platforms are essential in this effort, enabling seamless integration of advanced technologies that improve customer engagement and operational efficiency.
C&R Software’s Debt Manager stands out as the industry leader in configurable platforms for debt collection. It offers robust features such as omnichannel communication, self-service capabilities, operationalized analytics, and AI-powered tools. These features provide water companies with the ability to provide personalized and proactive services, improve customer satisfaction, and achieve better outcomes.
With Debt Manager, companies can adapt quickly to regulatory changes and customer needs, ensuring a resilient, customer-centric operation. To learn more about how C&R Software’s Debt Manager can transform your collections processes, contact us today.
