12 Mar Innovative Energy Marketing Solutions That Make a Difference
By Holly Paulus
As a Retail Energy Provider, fraud can impact your business in many areas. It is not simply a matter of “if and when”, it’s also a matter of “how and at what cost”.
Invalid enrollments, fraudulent enrollments, and un-verified data at enrollment are a few of those challenge areas where innovative solutions do exist. The key is to work with established industry experts who not only keep a pulse on the areas that impact Retail Energy Providers the most, but offer effective solutions that protect and enhance your bottom line.
Payouts on Invalid Enrollments or Dropped Enrollments
This is where a high percent of enrollments from channel partners such as D2D and Telemarketing, are sent through TPV and paid out, but end up as invalid or dropped enrollments. Because payments have already been made to these channel partners, the cost to the Retail Energy Provider for valid customer enrollments becomes higher than it should be.
Lead ID Management programs can pinpoint invalid enrollments that should never pass through TPV. By establishing a solution with both the TPV company and the Retail Energy Provider, requirements can be defined for lead inputs to create a transparent closed loop verification. This reduces the risk of payouts to vendors for invalid enrollments–saving thousands of dollars on the front end.
Some Retail Energy Providers experience as high as 30% drops on fraudulent enrollments which ends up costing significant amounts of money over time. The highest impact is occurring at the point of enrollment, but it doesn’t have to be that way.
Incorporating key best practices to enhance the enrollment process and improve fraud prevention can help stop the fraud before it occurs. There are two primary methods for accomplishing this in the energy industry –use of comprehensive data to create an enhanced consumer view (by leveraging billions of public records) and flexible data delivery tools (batch, web services, real-time API) which allow you to quickly conduct new account enrollment identity verification or customer authentication for account management.
Un-verified Data at Enrollment
The point of enrollment is critical for more reasons than just onboarding a customer. Enrollments, if not properly set up on intake, can end up costing your company hundreds of thousands of dollars over time. The data you collect at the point of enrollment, impacts how much that customer will cost you to complete enrollment and how effectively you will be able to communicate with that new customer. Customer engagement is the key to retention and real time identity verification and email validation programs can immediately improve your results.
Another key area of exposure [at the point of enrollment] is consumer consent and TCPA compliance on the data points collected. However, this is an area where you must have superior best practices in place in order to mitigate the risk of a violation under the TCPA. If you are not capturing explicit written consent for contacting consumers who enroll with you at the point of enrollment, you are opening your company up to significant liability.
Additionally, there are tools and resources for identifying active litigators at enrollment, so you are in control of those high risk enrollments and the business rules around the enrollment process. Implementing best practices and the use of Real-time DNC Compliance Management tools can help mitigate risk and reduce liability with TCPA and DNC for your company and telemarketing programs.
Holly Paulus is the Founder and President of Nexxa Group