One of the key differences between domestic and business energy is how credit scores influence the energy quote.
Put simply: as a business customer, you are likely to get a different set of quotes depending on how creditworthy you are.
Business energy suppliers tend to have a ‘pass’ or ‘fail’ approach to credit. Pass = a quote is offered, fail = no quote. More depth could be added to this decision making process. Our platform is capable of risk-based pricing and we believe this is a step in the right direction.
An obvious example of this was seen during lockdown, most SME energy suppliers did not take on customers who had a hospitality trading type, due to the perceived risk. This left businesses in that category completely unable to switch their energy or get a quote.
Tickd’s energy supplier platform and API integrations currently ensure that we never present a quote that a customer doesn’t qualify for. Energy suppliers provide us with their credit preferences, meaning if they don’t want to offer a particular business a quote, this customer will never see a quote. HOWEVER, our system is capable of so much. It can handle risk-based pricing. Instead of not quoting at all for certain SIC Codes or if scores are low, why not present a quote which is slightly different with a risk premium factored in? Why not offer an even more attractive quote to those businesses sectors that you really want to win?
Risk-based pricing is not new. Car insurance premiums are higher if the stats tell you a certain demographic are more likely to crash.
Energy suppliers, get in touch, we can to talk through ideas on how our system is capable of risk-based pricing. To be used to help you win higher quality and more profitable business. At the same time, this creates more opportunities for customers to find quotes. Win. Win.
Energy brokers, never present a quote again that a customer doesn’t qualify for. Avoid getting contracts re-signed and offer the customer a better customer journey.
Let us help drag the energy industry and the interaction between energy brokers, energy suppliers and customers into 2023.
