The jury is out. Ofcom has announced (as of 29 September) that it is now urging telecoms firms to do more to support their customers through the cost-of-living crisis, as new research reveals record numbers of households are struggling to afford their communications services.
So how will your organisation be adapting its approach to collections? How can you adapt to customers with special circumstances, whichever category they fall into? How will your customers perceive your organisation if you don’t demonstrate empathy?
Ofcom’s annual affordability study revealed that nearly a third (29%) of customers – around 8 million households – are having problems paying for their phone, broadband, pay-TV and streaming bills. The number of struggling families has doubled over the last year (from 15% in April 2021) and now stands at its highest level since the regulator’s records began.
Ofcom’s research also shows that millions of low-income households are still missing out on broadband ‘social tariffs’, special discounted superfast connections priced at around £10-£20, because not enough is being done to advertise this support, or the packages simply aren’t being offered.
While take-up of broadband social tariffs has more than doubled in the last six months – rising from 55,000 to 136,000 – only 3% of eligible households have signed up. That leaves 97% missing out on average annual savings of around £144 per year.
Therefore, Ofcom is issuing its new guidance on how firms should support customers in debt or struggling to pay. And with the cost-of-living crisis putting an unprecedented strain on household budgets, the regulator is also pressing firms to consider whether large price rises can be justified at time of exceptional financial hardship.
The current economic uncertainty is also likely to increase the challenge in understanding data around the vulnerable, particularly in the challenging period leading up to Christmas. The knock-on effect is that it will be essential that providers can determine the correct levels of staffing, and that they design more automated and empathetic processes in handling collections and complaints.
The current economic uncertainty is also likely to increase the challenge in understanding data around the vulnerable, particularly in the challenging period leading up to Christmas. The knock-on effect is that it will be essential that providers can determine the correct levels of staffing, and that they design more automated and empathetic processes in handling collections and complaints.
Join us at our pop-up think tank - redefining our strategies for CX in challenging times
With customers becoming more vulnerable than ever, the #WorldCXDay on 4 October showed us that the focus is on organisations to help get customers through the tough times. But how can they adapt?
On 7 November, Capita is assembling a pop-up think tank with the mission to co-create a short-term plan for how organisations should be redefining their strategies for #CX in these challenging times. Together we’ll be looking for ways to ease the pressure on customers and move steadily through a tough period that shows no sign of getting any easier.
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You may also be interested in reading my recent article Six empathic tactics for telecoms: collections teams
Find out how can we make collections better for you and your customers:
Mark Billingham
MD for Telco, Media and Technology, Capita
Mark was previously Group Customer Care and Experience Director & COO of Financial Services at The Very Group, the UK’s largest integrated online retailer and financial services business. He’s had a varied career spanning 15+ years across operational and outsource management, transformation and customer experience, including at Vodafone and British Gas. Under Mark’s leadership the Very Group was recognised at the European Call Centre awards for their customer transformation programme which in 2 years improved brand NPS by 30 points, tnps by 90 points, first contact resolution by 30 points and reduced overall customer contact and cost by over 70%.
