Initiative helps reach disengaged utility customers over debt

A firm which provides contact centre services for large suppliers such as Eon has launched a new initiative to re-engage customers who are struggling with debt.

The Reach:Out initiative, created by Sigma Financial Group, provides struggling customers with a pathway to better manage their debts by signposting them towards free advice and support.

As their debts mount up, some customers stop engaging with their suppliers and staff at Sigma act as pathfinders who work over a 10 day period to re-engage and offer help.

Those in debt are signposted to organisations such as Step Change, Citizens Advice or given advice on how to contact relevant support groups such Samaritans, Drinkaware or Mind.

Pure Planet was the first energy retailer to take part in the initiative when it launched in the summer. In total, 27 per cent of customers Reach:Out worked with during the 10-day strategy reconnected with the supplier to resolve their debt issues.

Overall, the company says it has managed to re-engage with between 20 and 25 per cent of customers it has attempted to contact.

Speaking to Utility Week, Sigma chief executive Gary Gilburd said Eon Energy has also signed up to the initiative and added that his company was in talks with water retailers as well.

He said: “What we are saying to clients is – say in the early arrears process there are 1,000 accounts that should go to a debt collection agency under their normal dunning cycle – give us that file for ten days.

“Let us try and engage with customers and try and establish if they should go down the debt collection route, in which case that is fine. All they have done is delayed it ten days, but you give us an opportunity to work with those for which that is not the appropriate path.”

Gilburd said that Sigma was seeing more people experiencing debt due to the pandemic.

He added: “The very last thing anyone wants is to be passed on to a debt collection agency, but suppliers also have their own costs to meet and have to be paid.

“With the Reach:Out programme we’re working with people who have stopped engaging to get them the help and support they need.

“The advisers we have hand-picked for this task are approachable, sympathetic, supportive and non-judgmental. That’s been a vital part of the initiative’s success and we look forward to helping hundreds more in the months ahead.”