Case Study:
National Grid
Business Challenge
In January 2008, the United States faced a serious economic downturn that was forecasted to become more difficult. National Grid began to see an unprecedented shift in its customers’ behaviors. National Grid’s senior executives asked our collections team what was required to get ahead of this trend.
The Decision Analytics answer
National Grid implemented Experian’s Portfolio Management Package and took advantage of the consulting that comes with that package. National Grid’s U.S. business relies on four legacy customer service systems. It implemented Portfolio Management Package and its Champion/Challenger analysis in one of those areas, servicing half of their customer base. During its first month of use, Portfolio Management Package was used to score the relative risk of the customers in that system. For each account in collections, it recommended the best way to treat that customer – calls, letters or personal visits. The system provided tangible actions that lead to improved performance.
The Benefits
The Portfolio Management Package and Champion/Challenger strategy impacted National Grid’s collections successes in three different ways:
- The new scoring model reduced the number of customers with delinquencies
- The strategy led to increased cures and a decrease in the number of accounts charged off or disconnected; and
- The reduced need for action (or applying a lower cost action) added up quickly for millions of customers.
“The strategy improved customer experience through proactive and early intervention and a creative approach that more effectively matched strategy to risk. We are very happy and are looking beyond this project to consider how else Experian can help us”
“We count on our Experian team members to help us stay on the leading edge.”
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