The industry challenge
In the highly competitive environment of deregulated utilities, operators are recognising the need for accurate risk assessment and customer management to minimise losses, costs and maximise profitability.
Choosing the right customer is less of an issue for utility companies, it is more important to set the right terms of business for each customer according to their willingness and ability to pay. Customer management is key to proactively minimising delinquency. For organisations that are multi-product suppliers, it also provides the opportunity to maximise the relationship through cross-sell and up-sell.
The answer
With Experian's proposition for the utilities industry, operators can automate and accurately assess each customer to understand the opportunity and risk that a customer presents. Using this understanding, the offers and terms, including payment terms, can be set which reflects this level of risk and potential value.
The customer relationship can be proactively managed to identify and quickly rehabilitate customers to return them to a profitable position.