gavin dufty - st vincent de paul society - signing up the customer - the first encounter matters
DESCRIPTION
Gavin Dufty delivered the presentation at the 2014 Collections and Hardship Programs in Utilities, Banks and Telecommunications Conference. The 2014 Collections and Hardship Programs in Utilities, Banks and Telecommunications Conference explored ways to manage the complex issues with recovering debt in utilities, telecommunications and financial sectors. For more information about the event, please visit: http://www.informa.com.au/hardshiputilities 14TRANSCRIPT
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Managing Collections and Hardship Programs in Utilities, Banks and Telecommunications 24 -‐ 25 June 2011 Melbourne Marriott
Gavin Du)y Manager Policy and Research St Vincent de Paul Society
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Signing up the customer -‐ Dirst encounter matters – will cover Will cover – from Case work perspecBve • The energy spend • Billing and collecBon cycles to assist consumers • Timing -‐ right informaBon at the right Bme
• Regulatory barriers in a dynamic market
• OpportuniBes / risks with smart meters
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Price increases 2009-‐13
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Disposable income by household group -‐ September 2013
Household group September 2013
All households, eight capital ciBes $1676.80
All Households Australia $1559.99
Couple with three or more dependant children
$1597.12
Renter $1379.72
Unemployed and student allowance $785.27
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The AVERAGE utility spend-‐RPI All Households Renter Unemployed /
Student Couple 3 Children
Percent UBlity spend (note esBmates from 2009/10 HES)
4.5% 3.7% 6.8% 5.6%
Dollar spend uBliBes
$63.61 $47.11 $42.10 $88.75
Dollar spend Electricity
$39 $35.43 $28.19 $55
Dollar spend Gas
$10.08 $8.21 $6.65 $14.44
Av ¼ energy bill $588.96 $523.68 $418.08 $833.28
Bill as propor/on of weekly income
37.7% 37.9% 53.2% 52.2%
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Right information at the right time • Ge^ng though – have you called the phone line ?
• Concessions and other assistance – retailers add value ! – concessions – URGS – energy efficiency
• What else you offer – energy literacy, conservaBon informaBon, hardship programs, tell them about it UP FRONT – people don’t like begging later
• And ge^ng them on the best rate – makes no sense to have them on the highest rate / default rate – would you like fries with that !
• If they don’t know ….. they cant help themselves.
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Billing and collection cycles to assist consumers • Frequency of bills considered in conjuncBon with other bills (gas at the very least if duel fuel contract etc) why all fight for the same money. (bill smoothing e-‐bills etc)
• AddiBonal fees and charges (Late Fee, Processing fee, dishonoured fee etc) these when coupled with loss of POT add up to hundreds $ per annum -‐ WHATS The real bill.
• Ge^ng the right informaBon at the right point in the collecBon cycle – the right prompts eg disconnecBon warning -‐ tell them how you can help them pay
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Regulation – challenges to the consumer experience • RegulaBon is based on an industry customer service 15 years ago • Barriers to the right informaBon being on bills (e-‐bills step around this in part) • Third parBes and obligaBons – confusion brand risk • Privacy barrier -‐ energy is a social good contracts are individual the person responsible for household budget may not be the name on the bill – this big issue !
• Smart meter -‐ No regulatory guidance so if nasBes come to market the industry takes a hit
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Opportunities / risks with smart meters – things are changing QUICKLY • IHD / portals • Billing on demand • Apps • Tariffs design that beler align with consumer energy saving strategies • More complexity and hence confusion • AddiBonal fees and charges • Third parBes • NZ -‐ enter own reading on web page or call centre (and make bill on that basis) retailer meter owner
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IHD and Portals
Powershop – in your pocket Origin – my home profile
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Portals AGL -‐ IQ Energy Australia – e Wise
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Managing Collections and Hardship Programs
• Gavin Du)y Manager policy and research St Vincent de Paul society
• gavind@svdp-‐vic.org.au • 0439357129