Debt recovery is a necessity but also something that can cause utilities lots of stress – a company can spend a lot of time and money building its reputation to have it undone if it comes across too aggressively or insensitively when recovering its debts.
“The customer journey” are words we hear constantly, but what do they mean? And how do you collect your debts while maintaining your reputation?
For utilities this can be particularly challenging, and while engaging with the correct legal partner is clearly vital, you must have processes in place that allow you to manage your customers’ accounts from the outset.
First, look at your internal collections process: when was it set up? Has your company changed in size, structure or culture? If so, it probably needs to be updated.
Another question is, is your software still fit for purpose? Are you providing customers with the information they need/are entitled to, in the format they now expect?
Your collection cycle should be clear and straightforward, and customers should be treated fairly at all times – your teams should be taught to treat customers how they themselves would expect to be treated.
If you are applying late payment fees to your customers, these will be fully detailed in your terms of business, but it is sensible to include them in all your collection letters and emails. It is important to make it clear to your customers from the outset that failure to address matters is likely to result in an increase in their debt.
We all know that the key to successful collection is to differentiate between the people who won’t and can’t pay their bills. If the customer is refusing to make payment for no legitimate reason, you are within your rights to pursue them, through the court system if necessary.
But where it is clear a customer cannot pay their bill due to legitimate financial hardship, this should be identified quickly. Your teams should know where to send them for support, and what your company can offer. If you empathise with a customer, and they sense this, you have won half the battle to a positive outcome.
You may have read this and thought: we do all this anyway. But try to look at it from your customers’ perspective: have you tried to contact your customer service line lately? Have you used a mystery shopper to see how your team and any third parties interact with your customers? Constantly reviewing your procedures and customer experiences is vital in ensuring a fit-for-purpose and smooth-running collections process.
Even though the debt recovery process is about trying to collect money, it can – if done properly – improve the image of your business.