Supermarket strategies take the telecoms lead

With a reduction in fraud, a drop in complaints and an increase in collections, Amber-Ainsley Pritchard decided to take a look at how Tesco Mobile has been so successful lately

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At the last Utilities & Telecoms Awards in Solihull we awarded two service providers that championed best practice in credit risk and collections.


Tesco Mobile and Talk Talk Business were joint winners of our Telecoms Team of the Year Award so we decided to delve into one case study for now.


The judging panel were asked to consider how teams had improved their own performance and contributed to the overall success of the business.


New and improved systems from Tesco Mobile appeared to drive intense positive results. From a 60 percent reduction in fraud and a 50 percent increase in collections it’s no wonder this provider supplies more than 4.5m customers with telecoms services.


The new systems implemented across, what the provider called, all stages of the customer lifecycle included in-life affordability scoring, an automated identification verification (IDV) tool and many more.


The IDV was put in place as part of the sales application process in a bid to reduce the incidence of impersonation fraud. Soon after it launched the volume of fraud fell by 60 percent.


A new debt management system was also put in place to automate the collections process with multiple debt collection agencies (DCAs) whilst ensuring all customers were treated fairly.


Tesco Mobile work with Moorcroft Debt Recovery, BPO Collections and Fredrickson International which operates under the Lowell Group.


As part of Tesco Mobile’s strategy to treat all customers fairly, including those who are vulnerable, it offers bespoke settlements.


This means that customers who cannot afford to pay what they have overspent just have to pay the cost of the handset and no further collections will be made.


High-level complaints relating to billing have also reduced and by 71 percent year on year (2015 to 2016) and Preston believes this is due to the changes made to the debt management system.


See Credit Strategy’s December issue for the full article on p12.

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