SOARING ENERGY PRICES AND UNIVERSAL CREDIT CUTS – WHY PROVIDERS MUST PREPARE FOR AN INCOMING WAVE OF PAYMENT SUPPORT REQUESTS

Yad Jaura, Product Marketing Manager at Netcall

 

Following the collapse of several energy companies as gas prices continue to soar, accessing and managing payment support is likely to become a pressing issue for thousands of households across the UK. In today’s economic climate, more people than ever are finding themselves in financial difficulty, meaning payments are becoming increasingly hard to manage. Indeed, a recent survey found that for over a quarter of households, an increase of more than £10 a month in energy bills could force them into debt. Further findings revealed that 17% of households have struggled to pay for their energy over the past year. And with November’s impending cuts to Universal Credit, more customers look set to face financial distress.

Whilst missed payments and managing payment support are part and parcel for any energy provider, after a slew of recent price hikes, their contact centres are likely to feel an additional strain. Energy providers must ensure they work with customers to make accessing payment support as smooth and stress-free process as possible. Those who overlook this risk being relegated to the bottom of the pile when it comes to customers’ mounting bills.

The knock-on effect that recent price hikes has had on energy providers, and their contact centres, should not be underestimated. Though unpredictable, it can be managed if providers have the right infrastructure in place.

 

The challenge faced by utility providers

Whilst consumers and businesses are struggling, utility providers, which keep our nation running, will do so too if unable to recoup payments. Unfortunately, however, the reality is that current repayment systems aren’t often up to scratch. Many companies require customers to print off and complete multi-page forms, disclosing their current circumstances to arrange a suitable payment plan. As well as being overly complex, this process can take weeks, if not months, to process, incurring further delays for both the customer and provider. Instead, it’s important that utility providers put customers at the centre of their processes – offering a range of options that work for customers, including self-service methods.

There is also the issue of changing government guidance for utility providers. Many are currently being encouraged to consider payment holidays and payment matching, whilst also helping customers pay their bills through the Warm Home Discount scheme, social tariffs, and other affordability initiatives. This adds extra complexity to existing processes.

 

How innovation can help

In order to overcome these challenges, utility providers must implement innovative solutions that allow them to build automated, digital platforms that not only make it easier for them to manage payment support processes internally, but also improve the customer experience to keep customers onside. Flexible, quick-to-implement Platform as a Service (PaaS) technologies, such as low-code, can help utility providers respond with agility, enabling them to build platforms accessible from a range of devices to access information, check bills, payment statuses, and set up payment plans. Low-code enables businesses to easily make changes to a process dependent on changing government guidance, due to its agile nature.

When combined with Robotic Process Automation (RPA) technologies, systems built on low-code can also help to gather information from customer relationship management (CRM) systems about customers who are having problems with payment. RPA technology is particularly beneficial as it can be implemented over existing systems and data, minimising the disruption of current IT infrastructure.

 

Solutions for the long-haul

Being able to modify processes quickly and simply is an important requirement in today’s volatile climate. Moving forward, utility providers must look towards a long-term solution that can help both customers and their own bottom line. Again, low-code technology can help here as it provides utility companies with the ability to easily implement change, adapt and scale internal and external processes according to business needs, all while keeping the customer at the centre of their thinking.

 

Supporting customers through financial turbulence

As we continue to navigate the pandemic’s aftereffects, managing payment support will be a relatable issue across businesses in many sectors, including banks, credit card companies, landlords and legal companies. The end goal for these companies should be to provide a seamless customer journey that enables consumers to manage repayments easily and effectively. By introducing simpler processes, as well as managing existing repayments, providers can also help customers tackle debt much earlier. For utility providers, this means managing the flow of information, whatever its origin and destination, and being available on a range of communication channels.

Finally, with young people having been reported as the hardest hit by the financial squeeze of Covid-19 and expected to be disproportionately affected by the end to the £20 Universal Credit uplift next month, businesses must ensure their contact centre offering integrates with a range of communication platforms – from chatbots to social media, especially as two-in-five consumers now prefer to use self-service channels rather than phoning a call centre. Understanding customer preferences and building solutions that enable companies to manage this whilst recouping payments will be essential in the weeks and months ahead.

 

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