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By driving channel shift for television licence fee payment we help BBC funds go further

Capita manages Television Licensing on behalf of the BBC. Licence fee income provides 74% of net revenue used to fund BBC services, so efficient collection is key to provide as much funding as possible for BBC programmes and services.

We began delivering TV Licensing services in 2002 under a ten year contract, which has since been extended to run to 2020. Capita has guaranteed cost savings of £220m over the life of the contract which will be achieved through innovative methods for driving channel shift, reducing licence evasion and increasing operational efficiency.

We’re responsible for:

  • processing enquiries, applications and payments
  • maintaining an accurate licence database
  • identifying people without a licence and enforcement.

We’ve used insight and analytics to deliver services as effectively as possible and enhance our understanding of the customer. As a result, we have increased licence fee collection from £2.7bn to £3.7bn, and encouraged more than 70% of customers to pay for their licence fee by direct debit. At the same time, we have maintained an average customer satisfaction rating of 92.5% and reduced complaints by over 22% in the last year alone.

Bringing customers online saves money – but the online experience has to be right, particularly when it comes to such a high profile service. To be able to reduce costs, but maintain a positive customer experience, we developed a personalised, joined-up, multichannel solution. This includes ‘licence by email’, which was used by 5.8m customers in 2015, a 38% increase on the previous year; and ‘Payment by text’ which increased in use by 50% between 2013 and 2014. In 2014 we launched a new TVL website which is continually developed to ensure customers can complete a range of transactions online, personalised to their needs. Our focus on guiding licence-fee payers to self-serve channels has pushed over 70% of contacts to the web.

Reducing licence evasion is also a priority.  We use various strategies to achieve this including targeted direct marketing campaigns, social inclusion activities, analysing customer behaviours, encouraging prompt renewals, offering flexible payment options, selling licences and/or successfully bringing prosecutions.

A mechanism is also in place for jointly funded initiatives, where the proportion of funding provision from each party is determined by the benefit that each party will secure from the improvement. The contract is run on an ‘open-book’ basis, providing full transparency of our operating costs. Should our operating profits exceed defined thresholds, systems are in place to share additional revenues fairly between both parties.

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