Case studies

TV Licensing 

Delivering value for money with innovation and a customer-centred approach

Then:
Capita first won the TV Licensing contract back in 2002 to provide customer service, contact centre management and scheme enforcement for ten years. Our role included processing applications and payments, handling customer enquiries, maintaining an accurate licence database and identifying licence fee evasion.

Over 1,500 staff transferred to Capita in July 2002 with no disruption of service. During the transition phase we designed, built and staffed a new customer contact centre in Darwen and moved TV Licensing's head office and staff to new premises in Bristol.

Alongside our partners, and with a more sales focused approach, we have reduced the rate of evasion from 5.7% to 5.1% and raised the number of direct debit customers by 21% which has delivered real net value to the BBC

And now:
After a highly competitive selection process, in December 2011, the BBC selected Capita as preferred partner to administer TV licensing for a further eight years. During this next phase of our relationship with the BBC, Capita will re-engineer the current service delivery model and use modern, flexible technology and customer-centred service design methods aimed at delivering enhanced customer satisfaction for licence payers.

We are also targeting to improve revenue collection levels and reduce our cost base to maximise value for money for the BBC.

Significantly, the new contract represents cost savings of over £220m for the BBC over the life of the contract.

“Through our current contract we have consistently delivered real value to the BBC, helping to drive down evasion and increase revenues collected. We now have an opportunity to build on these achievements and look forward to introducing additional innovation and techniques to deliver a highly customer centric service that creates further value to the BBC and its customers.” Paul Pindar, Capita CEO

“This contract represents great value for the licence fee payer. Capita's bid was the best both in terms of innovation and efficiencies and so offered best value for money. The success of
recent efforts by the BBC and TV Licensing to encourage people to pay via Direct Debit and use self-serve channels such as the web has enabled us to re-structure the new contract to realise the savings benefits. Additionally, savings have been achieved by consolidating what were previously two contracts.” Zarin Patel, BBC Chief Financial Officer
Fast facts
Contract value

£560 million

Start

July 2012

Duration

8 years 

Capita services

Customer service
Contact centre management
Scheme enforcement

Delivered in partnership with iQor, CSC and Proximity.


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