Case Study: Central Hudson improves arrears recovery and customer engagement with E Source

Central Hudson reduces arrears 30% in five months with E Source

Central Hudson, a utility company, faced a significant challenge with a $185 million arrears balance that had grown over five years, impacting over a third of its customers. The problem was compounded by pandemic-era moratoriums that changed customer payment habits and a major SAP system implementation that had deferred collections functionality. E Source was engaged to help address this fundamental issue of customer disengagement and collections performance.

E Source implemented a multi-phase strategy for Central Hudson, beginning with a diagnostic risk assessment to understand the full scope of the problem. The solution involved stratifying the customer portfolio, optimizing manual outreach to priority segments, and improving data and SAP processes. This led to targeted, personalized communication through preferred channels like text and email. As a result, within five months, E Source helped Central Hudson achieve a 30% reduction in total arrears balances, a doubling of customers current on their bills, and an 85% rate of new bills being paid within 90 days.

Central Hudson