Key Points
  • A leading energy company was losing revenue due to mounting bad debt and operational inefficiencies in the debt recovery process

  • The company partnered with WNS to streamline its debt operations and improve customer engagement

  • The transformation enabled the company to reduce bad debt by 50 percent

This is our story of co-creating a solution with a leading APAC-based energy company

As we know…

Energy and utility companies are under increased pressure to offer better customer experience. But improving customer experience in debt operations is a challenging task. A streamlined and structured approach is required to improve customer service in debt recovery processes.

The challenge for the energy company was…

Its bad debt had touched 2.6 percent and the company was losing revenue due to drawbacks in the debt recovery process. Operational costs were increasing as a result of inadequate processes and complex documentation. There was high customer churn due to poor customer experience in the debt collection process.

The incumbent vendor had failed to outline the process and meet the service cutover deadlines. The energy company leveraged WNS’ domain expertise to transform its debt collection operations and improve customer engagement.

Here’s what we co-created as a solution…

A swift and seamless transition of employees from the existing vendor was done in just four months, with minimal impact to the end-customer. WNS’ mature and result-oriented transition methodology ‘EnABLE’ was deployed to accommodate the unique requirements of the client. Thirty projects were identified in three areas — debt, customer satisfaction and cost-to-serve — that were negatively impacting the client’s operations. These processes were streamlined and re-designed.

The energy company’s revenue was getting impacted because every quarter unallocated payments in Electronic Funds Transfer (EFT) remittances amounted to AUD 8 Million. On a monthly basis, debt due to customer disputes hovered around AUD 2 Million.

WNS prioritized high-dollar value accounts and proactively followed up with customers for successful closure of payments. A multi-channel approach was introduced to reach non-paying customers. An incentive program was launched to encourage customers to make early payments.

For the first time in the debt recovery space, the energy company looked at implementing Net Promoter Score (NPS) to measure customer satisfaction levels. Increasing the NPS in a debt collection function was an extremely challenging ask.

WNS used text and sentiment analytics to mine data from 500 e-mail surveys and assessed customer satisfaction at both process and agent levels.Insights from this assessment were used to further improve agent performance and the debt collection operations.

The outcomes from the process of co-creation are...

The client’s bad debt was halved. The debt recovery operations, which had been a major source of concern for the company, became more structured and streamlined. Additionally:

  • Unallocated EFT payments reduced from AUD 8 Million to AUD 63,000

  • Operational costs reduced by 15 percent

  • WNS delivered an operational efficiency of 20 percent

Every quarter, the back-office function was able to seamlessly handle volumes to the tune of AUD 250 Million, and 98 percent of this amount was converted into direct revenue for the energy company.

WNS also helped convert AUD 1.4 Million of the AUD 1.6 Million payments in suspense accounts into revenue for the company. The transformation of the client’s debt collection process also improved its customer experience in this space.

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