Challenge

As we all know, the cost-of-living crisis and huge rise in energy costs has caused more customers than normal to fall into debt with their energy supplier.

When a customer is struggling financially, and falling behind on payments, the situation can quickly become overwhelming.
Many don’t realise that often their situation can be discussed and resolved with their supplier way before it spirals. But, despite attempts by the supplier to reach out with solutions, some customers start to ignore emails, letters and phone calls and gradually become unreachable. At this stage the debt is usually passed to a debt collection agency.

Ovo did not want this to happen. They wanted to do the right thing for unreachable customers and looked for a different solution to re-engage with them in a positive, supportive way

Solution

ReachOut is a unique service from Sigma Connected, which re-engages with customers who are struggling to pay bills, through open and honest conversation. Our aim is to guide customers to charities or organisations best placed to support with financial, mental, emotional and physical wellbeing, or through crisis; as well as raising awareness of and helping customers access the support our clients offer their customers.

It plugs a gap in the collections process, giving customers a third party, a friendly ear who is totally impartial, to step in with support before the debt goes to a collection agency.

Results

The pilot began in January 2023 and was incredibly successful, with 25% positive engagement from those referred. ReachOut was then able to reconnect almost 16% directly with Ovo to access their support schemes, such as direct financial support, hardship scheme, free energy saving products like electric throws, self-heating mattress toppers, boiler services and smart energy kits. Many were also connected with charities such as the Samaritans, StepChange, Anxiety UK and MIND. This holistic approach supported Ovo’s customers with their underlying causes for debt, improving long term outcomes and their ability to manage all debts.

Following the successful pilot, in July 2023 Ovo contracted to use ReachOut on an ongoing basis. By the end of 2023, we had received almost 37,000 accounts and been able to positively engage with 29% of these customers. 15% have then been ready to transfer to Ovo to receive direct support. Ovo was delighted with these early results and, importantly, their customers were happy with the outcomes too:

“Your anxiety goes through the roof in this situation. Thank you for all your help I feel so much better now.” OVO Customer

“This call has been quite therapeutic; this really has helped me sort my brain out being able to go through my stuff with someone who has no idea who I am. Thank you so much I really appreciate that.” OVO Customer