How a multi-state US electric utility accelerated $305M through digital outreach

A large, multi-state US electric utility partnered with Firstsource to modernize its collections and customer outreach operations through digital communications. The objective was to supplement existing mailed and field-based processes with timely, electronic outreach that could expand customer response windows, encourage self-serve payments, and reduce reliance on field activity.
How a multi-state US electric utility accelerated $305M through digital outreach

Overview

A large, multi-state US electric utility partnered with Firstsource to modernize its collections and customer outreach operations through digital communications. The objective was to supplement existing mailed and field-based processes with timely, electronic outreach that could expand customer response windows, encourage self-serve payments, and reduce reliance on field activity.

The engagement began with pilot campaigns across multiple states to validate customer adoption, cost effectiveness, and operational feasibility. Following successful pilots, the program transitioned into steady-state operations by mid-2022.

Today, Firstsource supports three digital outreach programs that collectively process hundreds of thousands of customer communications each year.

Challenges

Before implementing digital outreach, the utility faced several operational and customer experience constraints:

  • Compressed customer response windows: Mailed disconnection notices provided only three days’ warning before field personnel posted a physical notice. When notices were delivered late in the week, customers had limited ability to respond before service interruption.
  • High field visit dependency: Every customer who did not respond to mailed notices required a field visit, increasing labor costs and time spent on routine notice delivery.
  • Inefficient use of field resources: Field teams were occupied with standard disconnection notifications instead of higher-value work or customers needing direct intervention.
  • Late-stage customer engagement: Outreach began only when accounts reached disconnection status, limiting opportunities for early payment arrangements or enrollment in assistance programs.
  • Limited revenue acceleration mechanisms: There was no proactive digital channel to prompt self-serve payments earlier in the delinquency cycle.

How We Made It Happen

After evaluating multiple vendors through pilot campaigns, the utility selected Firstsource based on transparent, all-inclusive pricing, high-volume file processing capability, and responsiveness to urgent operational requests.

Firstsource implemented a three-part digital outreach model designed to align with existing utility workflows:

  • Digital Collections Program: Targeted customers more than five to seven days past due but not yet eligible for disconnection. Outreach encouraged self-serve payments and promoted available assistance programs to resolve balances earlier.
  • Digital Last Notice Program: Delivered email notifications to customers with active disconnection notices six days before scheduled service interruption. This extended the response window by three additional days beyond standard field notification timelines.
  • Human Services Outreach: Proactively notified eligible customers about financial assistance programs based on seasonal availability and program criteria, independent of delinquency status. Across all programs, Firstsource handled daily placement files, executed communications within tight timelines, and supported same-day suppression or template updates when required.

Conclusion

This engagement demonstrates how digital collections can strengthen traditional utility operations without disrupting existing processes. By extending customer response windows, accelerating payments, and reducing field workload, the partnership delivered sustained financial and operational value across multiple states.

As the partnership enters its fifth year with the expansion of Human Services outreach, the engagement stands as a validated model for utilities seeking to balance cost efficiency, revenue performance, and customer experience.

Outcomes

The partnership delivered measurable financial, operational, and customer engagement results:

$305M+ in customer payments generated

through the Digital Last Notice program over three years, based on annual results of $42.9M, $144.7M, and $118.2M.

24% sustained customer adoption rate

for Digital Last Notice, with nearly one in four customers taking action digitally before a field visit was required.

~ $14M in productive capacity redirected

over three years, based on avoided field visits and the utility’s internal time and labor cost assumptions

2.2% payment rate achieved and sustained

for the Digital Collections program across consecutive years, exceeding the program goal of 2%.

~19% sustained click engagement for active accounts,

aligned to the utility’s steady-state benchmark for digital collections.

~70% email open rates,

indicating strong visibility and reach of digital communications.

Less than 1% customer complaints

related to digital collections outreach, demonstrating high customer acceptance.

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