How better identifying customers in financial

hardship can improve your bottom line

Presented by Nikki Dennis, Consultant eMatrix

Outcomes

To provide practical tools and solutions for organisations needing to balance commercial outcomes with financial hardship and the social needs of the customer

• better identify and assist vulnerable customers

• build resilience and support within your team

• realise measurable commercial outcomes

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The Changing face of Hardship -What is vulnerability, and what are the drivers?

Changing face of hardship

• Nearly 3 million people living below poverty line in Australia

• Australians owe $45b in credit card debt

• More than 1 in 6 struggling to pay credit card debt

• Between 2009 and 2018, power prices have increased by 75% on average, with Victoria and South Australia experiencing the greatest increases (104% and 112% respectively)

• Rising house prices

• Small business – 1 in 3 fear they will shut their doors in next 3-5 years

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“To be human is to be in vulnerability”

- Brene Brown (Research Professor)

“A vulnerable consumer is someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels

of care”- Financial Conduct Authority, UK

What is vulnerability?

Umbrella of Vulnerability

Alcohol abuse

Gambling

Physical Illness

Adolescent abuse

Marriage breakdown

Mental Health

Family violence

Elder AbuseDrug

addiction

Disability Indigenous

Bereavement

Unemployment / Redundancy

Current Regulatory

Environment

ROYAL COMMISSION AER CUSTOMER

HARDSHIP POLICY

REVIEW

ESC PAYMENT DIFFICULTY

FRAMEWORK

ESC FAMILY VIOLENCE

GUIDELINES

TELECOMMUNICATIONS

CONSUMER PROTECTION

CODE

NEW BANKING CODE ABA VULNERABLE

CUSTOMER GUIDELINES

ASIC

Current Regulatory Environment

Practical strategies to support vulnerable customers and build resilience and well being in staff

Debt is now everyone’s Business

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Awareness

Triggers

Red Flags

Privacy & confidentiality

Genuine and Respectful

Conversations

Build trust & rapport

Ask the right questions

Empathy & purpose

statements

Employee Self Care

Learn how to debrief

Develop a self care plan

External support services

What are the blockages for this to occur?

The Usual Suspects

Linear Thinking

Equals transactional conversations

Because the tail is wagging the dog

Human Call Flow

Building Rapport

Active Listening

Language that matters

Ask the right questions Solution

Misunderstanding Empathy

Customer

• We enable a worsening financial situation for customer

• Not empowering – not a ‘get back on track’ plan

• Lulls them into false sense of security

Sympathy

Employee

• Employee is ‘taking on’ the energy – becomes emotionally invested

• Not sustainable - ‘compassion fatigue’

• Many employees who choose to work on these calls are dealing with their own

drama

Company impact

• Lower recovery – no balanced outcome

• Increased call time

• Longer recovery time for staff between calls

• Presenteeism + Absenteeism

Customer

• Customer tension grows

• Will avoid engagement going forward

Apathy

Employee

• Employee is often judgemental and disengaged

• Spreads negativity to entire team

• Does not feel like they can change or control things

Company impact

• Higher bad debt, lower recovery

• Brand issues

• Increased complaints

• Increased call time

Customer

• Feels respected, heard and understood

• Empowered – customer thinks logically

• Likely to engage again

Empathy

Employee

• Helps maintain call control

• Prevents tension and conflict

• Builds resilience – less taxing on wellbeing

• Satisfaction in role

Company impact

• Improves brand

• Stronger arrangements and payments

• Engagement with consumer is stronger – customer prioritises paying you

Empathy Toolkit

Pick a starting point

That sounds….

That would….

That must….

That can….

I can imagine….

Sounds like….

It would….

It can….

+

From the customer’s empathy

trigger choose a feeling word

Challenging

Frustrating

Difficult

Draining

Tough

Strain

Stressful

Upsetting

Rough

Overwhelming

Juggling a lot

Underdeveloped Team Leaders

60% of Team Leaders

are new (less than 12 months) yet

manage

80% of your staff

So what does this mean for supporting vulnerable customers?

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Top 5 factors for success

1. Top Down Buy in - Ensure respect and empathy flows from the top

2. Early Intervention strategies - Train all staff

(not just front line) in proactive identification,

self declaration.

3. Know your customers –Use the right

language, ask the right questions.

4. Invest in your leaders – increased motivation,

higher retention rates, increased customer

satisfaction

5. Audit your policies, process and data

governance – make sure they make sense at

the coal face

Measurable Outcomes

Results to improve bottom line

✓Improved customer experience

✓Increased first call resolution

✓Improved kept promise rates

✓Increase in sustainable payment arrangements

✓Better identification of vulnerable customers – getting the right help to the right people

✓More customers successfully graduating through hardship programs

✓Reduced Debt

✓Reduced Average Handling Time

✓Reduced complaints and escalations

✓Reduced attrition rates: more competent and engaged staff

Helping one person may not change the whole world, but it could change the

world for one person

Final Thought

Thank you…….

Nikki Dennis

0437 652 562

nikki@ematrixtraining.com.au

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Thank you.

Nikki Dennis

0437 652 562

nikki@ematrixtraining.com.au